Lee B

"Fair Rental Days refers to the number of days that the unit was actually rented out- rather than the total time it was available to be rented."

Of course, you can start a business actively prospecting for customers late in the year and have zero income.

My understanding is fair rental days is the number of days actually rented. Personal use days are a combination of the days you, any family members and any friends that didn't pay rental stayed there.

I am sure the IRS will appeal this. It will be in court system forever.

Wash Sales ?

It sounds like a post death lump sum settlement to the dad. It just didn't get resolved and paid until after the dad died.

What's the $ amount in Box 3

Wow, so the realtor gets a 30 % commission?

At least this is a start, but they're so far behind. "In a major step in the new Digital Intake scanning initiative, the IRS has already scanned more than 120,000 paper Forms 940 since the start of 2023, this is a twenty-fold increase compared to all of 2022. This effort will expand soon to include scanning of Forms 1040 as well as Forms 941. The scanning effort is part of a multi-form, multi-solution scanning initiative known as Digital Intake."

"This case joins one of my favorites in my tax class, Henry v Commissioner, which Paul Caron blogged about a couple of years ago. In that case an accountant attempted to deduct insurance and maintenance cost from his purchase of a yacht on which he flew a red, white, and blue pennant with the numerals ‘1040‘ on it. Henry, like Avery, failed to provide enough evidence to sustain the connection between obtaining clients for his accounting practice and his yachting, and the Tax Court disallowed those expenses as personal nondeductible expenses under Section 262." This has to be my all time favorite Tax Court case Years ago I had a long meeting with prospective clients who earned commissions as independent contractors selling merchant card services to various businesses. They made a substantial amount of money, enough that they purchased a Million $ Marathon Motor Home. They were Accountant shopping looking for someone who would agree to deduct their Motor Home as a business expense. They argued that when they drove their Motor Home to the Oregon Coast, they would visit current customers and prospect for new customers. When I explained to them why they couldn't do that, they left still shopping for an accountant.

Sounds like Turbo Tax Client

". . . . .on the earnings"

Their income is down this year but no capital losses available and no 0 percent capital gain bracket available. Normally they're in the 24% federal bracket or higher.

Here is a list of all the state efile requirements: ( Although it's from Drake, it popped up in an online search ) https://kb.drakesoftware.com/Site/Browse/15778/1040-State-Signature-and-Declaration-Forms

If your client received one, I assume it was for over $20,000? The amounts have not been waived. If your client reports income for less than than the amount reported on the 1099 K, at the very least it will trigger a CP 2000. What was delayed for one year is the reporting of amounts greater than $600.

Client sold a house originally intended to be a rental but it was never rented, purchased in 2020 and sold in 2022. Sold for $435,000 with a basis of $415,000. Received Down Payment of $49,000 took back a Promissory Note for $385.000. The Promissory Note is interest only with a balloon payment due in 2029. With down payment in 2022 and the balance of the principal in 2029 would you handle this as a Installment Sale?

Some years ago at a CPE Class, I was talking to another EA who had a good sized construction client with a number of vehicles. His client ended up in a very nasty audit where his client made no attempt to keep any mileage records and decided not to make any attempt at reconstruction. The auditor denied all vehicle related deductions and made it stick. It cost his client in the high 5 digits in additional taxes.

Before you go to a manger, you need to guide your client through the reconstruction of his mileage records. If he is in construction, he has records of jobs with dates worked, bills for supplies picked up etc. This auditor is bit over the top but her position is correct. If you don't push your client to reconstruct his records he will never learn the importance of keeping them.

"If assets in a 529 are used for something other than qualified education expenses, you'll have to pay both federal income taxes and a 10% penalty on the earnings."

I would file the PTS return in the state where it was originally formed and still located.

More than likely someone in the payroll dept didn't want to deal with the hassle of dealing with these other state reporting requirements.

Difficult situation, especially since Florida doesn't have a state income tax. The two CA employers are very unlikely to redo their W 2s and all of their Payroll Reports. How do you get the CA WH back without corrected W 2s? Really glad I don't have this return.

To me it's pretty clear what you need to do.

This article in The Tax Advisor covers all of your options: https://www.thetaxadviser.com/issues/2014/sep/tax-clinic-06.html