Max W

The California allocation form is CA (540), or CA (540)NR. Notice the parenthesis, it is different than the 540 form.

It only takes being in CA 30 days to be a TAX resident. Since all the income came from CA and NV does not have income tax, the form to file would be the regular California 540.

Thanks, grandmabee.

OK, Margaret, since you want some concrete suggestions, here we go. You start with the purchase price as the basis to the house. If the professor has receipts for 2017 he can total up, they can be added up and added to the basis. For simplification, as you suggest, start with Jan 1, 2017 as beginning rental date. For 2018, if there are more improvements, add them as improvements with a depreciation date of 07/01/18. The $650 non cash loan repayment should be included as rental income. For the wife who does NOT own the condo, the rent can be included as Misc Income on Line 21. However, in reality it is a gift from her parents and should not be reported as income. If she wants to make it strictly legit, the rent money should go to the parents who then can send the money to her.

If the foreign cash gift is under $100K, there is no reporting. Over $100K, file form 3520. As for the condo, as long as she is the owner and not a foreign corp, only financial assets have to be reported. Of course if she starts receiving rental income, that would have to be reported. Be sure to ask if they have any foreign bank accounts that had a value of over $10K any time during the year. The penalties are steep for not reporting. https://www.irs.gov/businesses/corporations/basic-questions-and-answers-on-form-8938#CashQ2

Because they are usually small amounts, I almost always put "Cash in Lieu" on Line 21. However, if you are already preparing Sch D for other transactions, you include as CG. Good luck figuring out the basis.

Client's deceased father had a Revocable Living Trust. The trust attorney told him to get a Trust EIN, which they did. With RLT's don't they just use the deceased's SSN and file an estate return? If so, it could be a problem because a 1099MISC for rental income was issued to the trust EIN. What is the remedy? TIA

Hmmm! Sounds like a theme for a comedy movie.

My number 1 rule. If it is bad news, such as higher taxes, or anticipated refunds that didn't happen, I always call them and explain why. Emails and texts just give them time to stew over it and put them in a nasty mood. Otherwise, I stick to emails for two reasons. One, phone calls take up too much time; and second, theres is a written record which might be needed later on.

I have reattached the 2017 final pay stub without personal info. I can't see that it helps, but maybe someone else can. I don't understand the SSAR and RSU tax being under non-cash earnings and included in the total. P.S. Thanks Judy for your eagle eye. 2017 Final Pay stub rev.pdf

Thanks for the suggestion, Joan. He sent his final 2017 pay stub and have it attached here. I can't see that it helps, but maybe someone else can. I don't understand the SSAR and RSU tax being under non-cash earnings and included in the total.

The client sent two Sale Confirmation letters, but there should be ten letters as 10 transactions took place on the same day What is puzzling is that one letter has $4950.16 ,RSU's, and shows up on the Combined 1099B Form, and the $3823.45 stock, does not. The RSU's on the W-2 were $3307, so that doesn't match the $4950. What is intriguing is that the $4950 is close to the $5108 "missing" amount.

I see a lot of minefields here. If it is sold while both parents are still alive, there will most certainly be a problem in establishing basis, particularly the inherited part. Since VA is not a community property state, could the mother make the sale. Even the part that was acquired while married might be titled solely in the father's name. Does the father have a will. What does it say? If the father dies without a will, the estate will go through probate, unless there Is a Revocable Living Trust. Probate is required in VA when the estate is worth more than $50K. If it goes to probate and there is no will and there are children, the children or their descendants get 2/3rd's and the wife only gets 1/3rd. Even when there is a will, probate can be challenged and then it can become messy, lengthy and expensive.

jasdlm, good question. I just emailed the client and hopefully we will find out.

One long shot possibility is that some some of the sales were short term and there was no need to add them to the W-2. That could be the case if there were short term and long term vesting periods.

SAR's and RSU's are essentially the same, except there is a limit on the number of RSU's that can be sold in a given year. Both are awarded as grants to the employee who must wait until they are vested before selling them. The employee has no basis in either one. If the stock has appreciated at the the time of sale, that appreciated amount is accounted as ordinary income and goes to box 1, W-2. If there is any change in the value of the stock after it is cashed out , I don't see how it could affect anything.

They couldn't be added until the stock was sold.

Client is employed by Genentech receives SSAR's and RSU's from Roche, he parent company. Neither type become taxable until sold. The sales are reflected in Box 1, W-@, and the breakdown is shown in Box 14. Roche uses Equatex as a broker. The client sold $85K of his holdings last year. To report on Sch D, the basis should be the amount added to box 1, W-2. I am coming up about $5000 short and I don't think there should be any CG on this amount. I am wondering if the difference is in commissions, but looking at the Equatex Europe stmt, they are about 0.25%, so they don't come close. Equatex USA only shows the total sale price and nothing else. Any ideas?

Switching to Drake was the best software move for me. Customer service has to be far and away the best in the industry. They answer on the first ring, are very helpful,courteous and friendly, and they even answer on Saturdays. Every once in a while you will get someone with a heavy southern drawl that might be a little hard to decipher, but at least their native language is English.

The Chrome browser can translate it for you. Machine translations used to be horrible, but they have gotten to be pretty good, now. Of course, you will run into the occasional word or phrase that just won't be right. A lot depends on the language pairs. If it is between major European languages , it will probably be pretty good.

You are comparing apples to oranges. You had a customized residential job, which would be on the high end of the scale. A parking lot is going to be on the lowest end of the scale.

If it is an outdoor paved parking space, is it worth bothering with.? Here are some national averages for a Two car driveway, so you are looking at maybe $500 (asphalt) $1500 (concrete), unless it is in CA where you can probably double that. So for 15 yr dep. concrete would be $100/yr https://www.fixr.com/costs/concrete-driveway-paving

Catherine, please let us know if you find anything. I looked through pub 4990 and found nothing for OIC. I would certainly be interested in having that information.

Hmm! K-1 visas are for fiánces and they are only good for 90 days and are not renewable. So, spouse was only a LTR for the 90 period, leaving only 60 days legally working. That would be a short gap exemption. Bottom line, H. I., not required. When requesting change of status, spouse is going to run into some immigration problems.

Dan says he called it.