Lee B

Based on the CPE classes that I have attended, a 3115 can reach back as far the incorrect method has been in use. The classic situation is the correction of a incorrect depreciation method going back for as many years as required.

I doubt they are concerned about the extra work they cause. I am certain they are far more concerned about the pressure they are receiving from the lobbyists of the 50 Industry groups that are pushing hard for this bill to be passed!

This commentary from Politico spells out the murky future of this bill: EXTENDERS PROCESS GETS EXTENDED: Remember when tax writers believed they had to restore those dozens of temporary tax breaks within a year of their expiration? No more: The last extenders package passed in February 2018, more than a year after the incentives expired. And this year? There’s no telling when any of the tax breaks might get revived. The Senate Finance Committee — led by Chairman Chuck Grassley (R-Iowa), a reliable supporter of preferences for biodiesel — has been pushing to wrap up extenders more quickly. But people watching the issue say they detect no real sense of urgency out of the House, and that the extenders are likely to slip past April 15 unless something changes — meaning that the current filing season would end, and taxpayers and businesses would, presumably, be filing without a clear understanding of whether those tax breaks would once more get new life. Of course, the tax-writing committees know that a lot of businesses at least file extensions until Oct. 15, which could ease the pressure for the House and the Senate to make a deal. It’s also far from the first issue where House Ways and Means Chairman Richard Neal (D-Mass.) has been proceeding methodically (think the president's tax returns), as he tries to integrate 10 new Democrats into the panel. Still, Sen. Ron Wyden of Oregon, the top Democrat at the Finance Committee, told Pro Tax’s Aaron Lorenzo on Tuesday that he believes a bit of support is beginning to take hold in the House, where new Ways and Means lawmakers have been learning about extenders. “I’ve seen it building because everybody’s getting the same kind of concerns from home on uncertainty and what’s the timetable,” Wyden said. And stay tuned: Grassley and Wyden will soon lay another marker on tax extenders, likely on Thursday, according to a Finance source. The observation that the passage of this bill may not happen until after April 15th is an on point example of the times that we live in.

Here is a link to the actual text of the 43 page bill: https://www.finance.senate.gov/imo/media/doc/116.S.xxx - Tax Extender and Disaster Relief Act of 2019 - MCG19154.pdf Here is a link to the text of a 5 page summary of the bill: https://www.finance.senate.gov/imo/media/doc/Tax Extender and Disaster Relief Act of 2019 Summary.pdf

A bipartisan bill combining the usual tax extenders with a disaster relief bill which would be retroactive to Jan 1st, 2018 thru December 31st 2019 is on the move in the Senate cosponsored by senior members of both parties. The bill extends 26 provisions that expired at the end of 2017 and 3 provisions that expired at the end of 2018, including: 1. Tuition Fees deduction reducing AGI 2. 7.5 % Floor Medical Deduction 3. Itemized deduction of PMI as qualifying mortgage interest. 4. The usual Business Energy Tax Credits 5. A grab bag of Disaster Relief Tax Benefits. Unfortunately, there is no mention of any TCJA Technical Corrections.

However, if you don't file the 3115, you still would have to recapture the depreciation that should have been deducted.

I would report. After all the essence of the situation is that an active rental exists. It's only due to timing that there is no reportable income/expenses. Wouldn't you still have a small depreciation deduction?

Here is a link for the IRS Interactive Tax Assistant for this credit: https://www.irs.gov/help/ita/am-i-eligible-to-claim-the-child-and-dependent-care-credit

Copied from ZDNet via Forbes:

At least, it's not a triple net lease. Is the Sch F and the Sch E land contiguous under the same exact ownership? What is the relative revenue generated on Sch F and Sch E? Look for other involvement perhaps more long term, soil erosion control, noxious weed eradication, any structures etc. Look at restructuring the arrangement so that it's QBI in the future.

A better example quite common in the western U S: Well is drilled intended to supply the whole property, subsequently goes dry and has to be filled in. Another deeper well is drilled which is successful. All costs added to basis.

Demolition costs or in this case, costs of land restoration is always added to basis. The bigger question for me is which part of the land was the pond related work done on resulting in : 1, Pond related costs added to remaining 9 acres? 2. Pond related costs added to the 6 acres sold? 3. Pond costs apportioned on a per acre basis ? As to the question of whether the pond related costs should be added to basis, it's no different than any other expenditure performed with the intent of increasing property values which doesn't work. Example: Property owner makes extensive flood control improvements. Next year, big flood changes river channel, rendering prior flood control improvements useless.

I do very few EIC returns, but I believe you are correct. I just discovered that the IRS has a neat interactive Q & A tool called the "EITC Assistant", https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant time Give it a try, it only takes a few minutes, which is less time than reading reference materials

Oregon, like Delaware, has allowed filers to itemize on the state return, while taking the standard deduction on their federal return. Since Oregon's standard deduction amounts are fairly low, itemizing only on the state return is fairly common. Oregon created a Schedule A and released it along with instructions in early January. With respect to the deduction of paid taxes, it seems to function just like Delaware.

What a bunch of bovine excement ! The person that told you that should be flogged in public. 1. Can you print the return to a pdf file first, then print the return from the pdf copy? 2.Is the printing of returns O K after rebooting your computer, then you run into problems several returns later ? There is more depending on your answers.

One other possibility, creation of W -2s is a favorite tool of scammers.

It all balances, some of us win the genetic lottery and some of us crawl thru the ditches of life. I am feeling very philosophic this morning, while I recover from surgery.

I looked it up, capital gains from the sale of a muni bond is taxable federally and quit likely at the state level also.

Just because the interest is tax free, does that mean a capital gain is also tax free ?

I have seen this exact problem multiple time over the years, especially when spouse 1 earns significantly more than spouse 2. The only solution is for spouse 1 to claim married "withholding at the higher single rate." either S -1 or even S - 0 in a few cases.

This is one of the times where substance matters more than form. So it needs to be recorded as a buyback of capital.

You nailed it !

Because the QBL carries forward to the next tax year to reduce future QBI.

What are you doing creating an LLC ? Are you an attorney licensed to practice in CA? How are you going to create a customized operating agreement, which most banks require a copy ?

I attended this seminar prior to the release of the safe harbor notice. The safe harbor notice has completely flipped my understanding. Now I think that all of my rentals except one do not qualify. The one that might qualify is problematic because of the contemporaneous log requirement, which my client would be very unlikely to maintain.