Christian

Alas. I try to help my folks. I have never had any problems deducting remaining depreciation likely because the amounts involved were not large. I will file jk's reply for future use. After seeing some of the work of now retired tax guys the small amounts of depreciation I took off are tiny potatoes compared to the thousands of dollars of farm losses deducted from the following year's Schedule F's and shown as excess farm losses. All of this in plain view and the Service never batted an eyelash. Thank youall for your feedback.

That's true Gail but it must be remembered they paid for this equipment in a given year and did not deduct the costs fully in that year. Normally when someone leaves farming I deduct remaining depreciation in that year. These folks simply sold their final animals and did not farm at all in 2015 which they failed to advise me that they were going to do or I would have taken the remaining depreciation on the 2014 return. I likely could place it on Schedule A but that will provide them no tax benefit.

A couple who have farmed for years basically just quit. They had no farm income nor expense last year other than depreciation remaining on a few pieces of equipment. Can I file the final Schedule F showing only the remaining depreciation as an expense item and , of course, will not have a Schedule F for next year's filing?

A CPA friend resolved this indicating I need use only one Form 8962. It worked perfectly.

A married couple came in who both turned 65 in 2015.They were covered by the exchange until the month they turned 65 and went on Medicare. They received two Form 1095-A one covering the period January-April at which point the husband became 65 and a second for the period May-November for his wife she becoming 65 in December. As I understand it I need to fill out two Forms 8962 for the covered months for each. Any input will be appreciated.

In 2009 a mother who owned 200 acres of land with standing timber added her son's name on the deed to the property with a right of survivor ship. She died in 2010. The son sold the timber in 2015. The question is the basis of the timber he sold. My view he inherited it in 2010 and that he is entitled to use the stepped up basis. Any input will be appreciated.

I have a client with a wife and four children whose income is well below the filing threshold. He was assigned exemption numbers by the federal marketplace for himself, his wife, and two of his kids. The other two children are covered by the CHIP program. I filled in Form 8965 showing the four covered by their exemptions thinking it unnecessary to add the other two there being no listed exemptions for government coverage in part two. ATX added $975 in penalty fees so I went back and checked the hardship exemption box which eliminated the penalties. However, I am wondering if this is correct. Any feedback will be appreciated.

After reading the points made in the last two replies I have decided to take another bite at the apple. Of course it's true the executors have the final say. My guess is they simply don't want to listen to a lot of yipping and yapping from other family members. Even so, as pointed out by Sarah (a fact I overlooked) the K-1s will apply to 2016. Still I will bet a dollar to a dime they will opt for the estate to pay because " I don't want to pay no more tax". The 1041 will encompass the final period of farm operation and the profit likely will not be that much so happily I won't need to address this until a little later. Again thanks for your input.

Thanks Taxlady for confirming my reading on this. For my part a second or third opinion never hurts when you deal with the convoluted tax code we face. And Sarah I have discussed that very point with the two executors but some other family members file early and would not agree to waiting for the K-1s to come out in March. So they agreed to letting the tax be paid with the Form 1041 filing.

I went back and tried to delete this post but too late. I see now I will not need to send forms K-1s but will need to complete Schedule B and G.

As mentioned in earlier posts I am having to prepare a Form 1041 for a now deceased client's family. They have chosen to pay the tax due on any income with the Form 1041. In other 1041s I have prepared the heirs elected to take distributions which were reported on individual K-1 forms and paid the tax due on their returns. Since these heirs want the tax paid with the 1041 I can find no reason to fill out Schedule B on the 1041 nor prepare any K-1 forms. Is this correct ?

Thank you for your information. It could hardly be more clear than that. I do very few 1041s. A pity it cannot be deducted.

A client who died in March 2015 owned a farm which has a remaining NOL which has been carried forward for a few years. On her final return there will remain a portion of this NOL unused. Can this be used on her Form 1041 on line 15b to reduce any tax due on the 1041? Somewhere in the distant past I encountered this same problem and arrived at the opinion that an unused NOL is simply lost but this applied to a succeeding owner of a farm who was not allowed to use the prior owners NOL.

I note the deceased dod usually showing on the upper part of Form 1040 does is not working being posted after I entered the date in the information field. Anyone else noted this problem?

A longtime client who owned a small family farm passed away in late March last year. Part of the farm's operation fell into the period after her demise and will be reported on Form 1041. The farm will show a small profit of a few thousand dollars for that time period. I rarely have need to file Form 1041 and am wondering if the estate needs to pay self employment tax just as if the client were still alive. My thinking is no SE tax is due but will appreciate any input.

This year I spoke to a former practitioner who retired in 2013. He was 93 before he quit. See there's hope yet.

Here's wishing all members of this forum a Merry Christmas and a prosperous New Year. Next year will be my 34th year as a practitioner. I enjoy the work but realize that not so far down the road I will have to pack it in. It's great to know that we have this forum as an additional information source and can enjoy the friendship of it's members.

Microsoft keeps popping up a reminder to upgrade. Like Jack once I get comfortable with my existing Microsoft version I usually put off changing until I need to replace my pc or Microsoft stops supporting what I am using.

I note that ATX is offering IntelliConnect to their clients this year. After reading the user agreement I thought the program too intrusive. I am the farthest human from being a tekkie so I thought it would do no harm to solicit opinions from the forum.

Forgive me Max. I was under the misapprehension that this was a forum for both asking questions and sharing knowledge rather than inflating our own egos.

I've pretty much digested the requirements for the ACA luckily having not too many I had to deal with this year. With the clients now going to receive 1095 forms from their carriers my belief is we as practitioners will have to require them to produce these documents BEFORE we can prepare their returns. Is this reading of the law correct or maybe not?

Well here we go again. I suspect this time around that Congress may pass them. I am wondering if they will exempt those of us who passed the original license testing from having to do it over again. This will leave us with the 15 hour annual education requirement. That would match the current requirement under the voluntary program now being used. Does anyone have a clue?

Many thanks KC.

HOW SWEEEEEEEEEEEEEEEEEEEEEEET IT ISSSSSSSSSSSSSSSS !!

I have a couple who came in this year who have not filed a return since 2009. They have received letters from the Service over that time but no further action was taken by the IRS. Both are employed by the same police department and receive W-2 forms each year. My thought is the Service has taken no action because in looking at their W-2 income they compute a refund for each of the years in which they did not file a return. I am finally giving out my last return or two for this year and it suddenly occurred to me they may be violating the filing requirement imposed by the new ACA which ,of course, indicates a return need be filed to indicate medical insurance coverage. The wife normally handles their tax matters and clearly has no intention of filing a return for 2014. Should I call them and advise them they must file a return or am I reading the ACA requirements wrong and need do nothing ? Your input will as always be much appreciated.