Max W

Client purchased a 2 family home in San Francisco for rental purposes which already had a tenant. SF has some the of toughest rent control laws in the country. Because, the tenant had a "sweet heart" deal on the rent from the prior owner, the client wanted to renovate the house, raise the rent and move into the renter occupied portion. In SF, any of these reasons are cause for the evicted tenant to receive "Relocation Costs". The eviction cost the client over $10K in legal fees and another $20K to the tenant for relocation costs. In addition to this the client gave up any claim against the tenant for 7 months unpaid rent ($14,000). Clearly, the $10K legal fees are deductible as an expenses and it would seem that the payment to the tenant would also be deductible as part of the eviction cost, particularly since it is mandated by local law. However, I would would like to be sure that there is not something in our "clear, concise and unambiguous " tax code that says otherwise. TIA

Try calling PPS 866-860-4259. They are able to retrieve forgotten CAF numbers. So, maybe they can effect an address change, or at least point you in the right direction. BTW, it is not a stupid question.

Hmm! Did anyone ever sign off allowing Equifax or any other credit reporting agency to sell our personal info? Of course, not because there is a loophole in Fair Credit Reporting Act which allows them to do so. Although, it won't help with the hacked information, you can stop any further dissemination of your info at the following web site. https://www.optoutprescreen.com/?rf=t, It can be done electronically for 5 years, but if you want it to be permanent it has to be mailed in. (This smells like some political compromise that was made in drafting the legislation.

I've scoured the pubs and the other references and couldn't pin it down. There is no mention of a contracted employee working in a non-treaty state, only those treaty states that have an agreement on SS, or self-employeds. I had been thinking of a client that used to work for the Australian Embassy in DC and had to file a form SE, but she was a US citizen residing here, so the circumstances were different. So, it looks like there is a loophole here - Work under contract for a non-treaty state and avoid SE taxes.

Client worked under contract as a teacher for several years in a non tax treaty country. No taxes were withheld by foreign gov. Income was well below the exclusion amount so no income tax. But, what about SE tax. If client were self-employed, he would pay SE tax, but he was on contract as a salaried employee. I still think he still pays SE, but just want to be sure. TIA

For me, the only way to eat in Vegas is at one of the many buffets, where it is all you can eat and with a huge variety to choose from. Wynn's , Bellagio and Rio are 3 of the best.

I was a CAA maybe 6 or 7 years ago. My fee was $75, but the few people that called wanted it were not interested.

Someone is not doing much thinking on this. If the employer did not offer direct deposit, then the client would have had to go to another lender. Usually the reason for someone accepting this condition is that the bank will offer them an incentive, like lower closing costs, or a lower rate.

Your client may have a loan, or mortgage from the bank, conditioned on having direct deposit.

Cost of Room =$30. After returning $5, Cost = $25. After $2 tip, cost = $27 or $9/each. Remaining $3 is split up.

Watch out for those Octonians. Rumor has it, that it is the Octonians building the N Korean missiles. After advanced college calculus and differential equations, I said that's enough math for me. Octonians - "egads".

Did you advise him to seek mental help?

Since the decedent was a widower, it won't be converted to an irrevocable trust and the house will be distributed to the two beneficiaries.

The decedent's 1040 was filed. His only asset was his home that was rented out in his last year. His medical care offset the rental income and a small pension & SS. The home is valued at around $1M. The benes -2- will probably keep renting rather than selling.

So, Sara, is what you are saying is that the estate lawyer should have filed the 8855? What if he didn't.?

Client with a QRT died Dec 15, 2016. Can form 8855 still be filed, or does a short year for the trust have to be filed, and then a trust and estate return for 2017?

Yes, if the FMV is greater than the basis, then the adjusted basis is used. "If the FMV is equal to or greater than the donor's adjusted basis, your basis is the donor's adjusted basis at the time you received the gift" https://www.irs.gov/help-resources/tools-faqs/faqs-for-individuals/frequently-asked-tax-questions-answers/capital-gains-losses-and-sale-of-home/property-basis-sale-of-home-etc/property-basis-sale-of-home-etc

One sure way to find out if the individual EIN is good or not, is to apply for a new one. If it is still good, the application will be rejected.

One thing that the IRS always seems to get right is to credit the return the correct amount of ES payments, whether posted on the return or not.

t was purchased to be used exclusively as an office. As well as a working area, business records were stored there and there is a conference room where he met with clients. The boat was appraise for over $300K and purchased for $160K and the appraisal was over $300K. He thought he got a bargain, but an astute buyer would have smelled a rat, because it later turned out to be not seaworthy. If you consider that office rents in this area for similar facilities would be over $3500/m, it makes good economic sense.

Client purchased a restaurant franchise late in 2016. Restaurant did not start operating until April 2017. The question - is the franchise fee a startup cost, which would be amortized over 15 years, starting in 2016; or does amortization (also 15 yrs) begin in April when operations started?

Wait a minute! Everyone is jumping to conclusions without considering two things. 1. If a lien had been recorded on Naveen's home, the misfiling could have occurred at the county recorder's office. 2. Tax liens do not not attach to a specific property, but to All properties in the county of filing, And to any future properties. A lien attaches to all of your assets (such as property, securities, vehicles) and to future assets acquired during the duration of the lien. Liens on business also attach to accounts receivables. The lien notice went to Naveen's address, because that was the last address of record. If the address were a PO Box it would not mean that the PO Building had a lien on it. Naveen should check with her county recorder just to be sure under whose name the lien was filed.

Never! After purchasing the boat, he found out it was not seaworthy. The previous owner had made some modifications that made it top-heavy. He had had the boat appraised prior to purchasing it and bought it at a discounted price thinking he had a deal, but when he found out that it was not seaworthy, if were to sell it now, he would lose $100K. I wonder if there was some collusion between the appraiser and the seller. Hmmm!

Well, that's what I had in mind.

FDNY - it is not a 2nd home. It is strictly used regularly and exclusively for business which is putting together financial deals for which he receives a hefty commission. Your point about being a second home is well taken and may be the safest way to go.