Max W

Just signed up. Waiting for approval. I have done a lot of tax res, mostly for fed & CA, but have done a few other states including NY.

Are you sure that two of the W-2G's weren't duplicated?

Client has a rental unit that needs lot of repairs. He hasn' rented it 3 years. What expenses, if any, is he able to deduct, such as mort. int., prop. tax, ins., dep.?

Sounds good, Tom. Thanks

Client's house burned down in a fire in 2017. It has been rebuilt. LY he rented out half his house. What is the basis? Is it original purchase basis, just before fire, after fire, or when? The new house is slightly smaller than the one that burned, but it is essentially the same.

Not insolvent. Client has equity in 3 rental properties. I made a mistake, he financed a business with the cards, not the rentals. He has about $350K in additional credit card debt, but only $40K cancelled this year. Business is gone since 2017. So with the $350K, he would be insolvent.

Maybe this is the extension my client got that I posted about recently. I tried PPL this PM, but after 2 hour hold, hung up. Will try again Monday.

Client rec'd $40K Credit Card COD. The C/card was used in purchase of rental property. Can he avoid tax on $40K by reducing basis of propert?

The client requested an extension, as well as the transcripts. I don't know that the transcripts played a roll or not.

The client had already called back, before I requested him to do so, and confirmed it with a second personand he was told he had an extension until the end of the month.

Good Idea! I'll also ask the client to get the persons name and ID number.

Client called the IRS to get transcripts and the IRS person also extended the filing deadline 2 weeks. I know they can extend deadlines to file when it is related to installment agreements and the like, but for the actually filing deadline???? Anyone ever heard of this?

I speak fluent Spanish and was an translator/interpreter a long time ago.

File an amended return. The IRS will send you a letter CP01H, with instructions. https://www.irs.gov/individuals/understanding-your-cp01h-notice

It's not clear. Client says she didn't pay and partner says client paid some?? Still trying to get this straight. In any case if client paid anything it was to partner. I'm going to assume, for now, that client did not pay anything.

Partner rented it for 4 years, 2011-14, but all that was on his returns. He also paid mortgage int. and prop tax.

Client (C) invested with another person in a house, for investment purposes, but ...... 1. Purchased 2004 under partner's (P) name (Cost $720K) put down pmt $65K and took out mortgage in his name. 2. Right after purchase (C) paid $190K for improvements. Partner put in $55K. 3. 2007 client added to title. 4. 2019-20 client paid for $900K remodel. 5. 2021 - sold for $2,050,000. Proceeds allocate for client $1.3M, $750M for partner. 6. Each is filing 1040. My question - Does this arrangement sound equitable? I also think that it should have been set up as a partnership.

Thanks, Tom. I just wanted to be sure before I give the client the bad news.

If a motorcycle is used for business, do mileage rate expenses apply?

Senator Warren should try doing her own tax returns this way and see what results she gets. She wants the IRS to provide a government version of Turbotax without considering all the problems people have had with TT. It is so bad that that TT has had to hire EA's and CPA's to help taxpayers prepare their returns. Will the IRS be providig help as well with IRS employees that have had only a rudimentary course in taxes?

It would be hard to find RD in Brasil.

Four acres is a lot of land. It's the size of about 3 football fields laid side to side. He could rent spaces to other truckers, or subdivide the land and sell of chcunks of it.

Can you input each 1095-A separately? I had a client that had two 1095A's with two different insurers, each covering part of the year. Each form was entered separately, otherwise the dates of coverage wouldnt match the policy numbers.

Usually, the IRS will only allow a late year S-corp election to go back two years.

SMLLC It can become a disadvantage in CA due to the way the annual LLC fees are calculated. The fee is $800 up to $250,000 net income; then another $900 if it goes above that; an additional $1600 over $500K.