Lee B

According to the Taxpayer Advocate Blog: "Millions of taxpayers have received math error notices adjusting their returns, including the amount of recovery rebate credit (RRC), child tax credit, or other items claimed on their return. As of April 7, 2022, the IRS had issued 9.4 million math error notices of which 8.3 million of these are related to the RRC and the child tax credit." https://www.taxpayeradvocate.irs.gov/news/nta-blog-math-error-notices-what-you-need-to-know-and-what-the-irs-needs-to-do-to-improve-notices/ I wonder how many Millions of phone calls and letters this will trigger

The investment world, the intense focus on quarterly results and monthly updates has monetized everything. Our Federal Reserve is far more concerned about keeping Wall Street afloat and soaring than how the average working person is doing.

I will definitely agree with you about the Accounting Program. I used it for year end payroll stuff for several years and dropped it. It just wasn't productive time wise and the the support was very inexperienced. They had no clue about Oregon's payroll peculiarities. Once this year I did get someone inexperienced with the tax program, but she was able to research the issue and help me, although I was on hold for 5 minutes. On balance my experience with Drake this year was still good. Not excited about the $ 300 increase. Looking forward, my concerns are first with a software/technology company, cutting personnel related costs are the quickest way to juice the bottom line. Second, the software looks outdated/not modern, which means the program will get totally rewritten and perhaps outsourced to India? Third in 5 years I expect it will cost between $2,500 and $ 3,000 to renew. I am not going back to ATX and there aren't a lot of other choices at this price point.

Just received another letter saying they needed 90 more days.

Last year Drake's standard price was $1,625 with a $ 400 discount for renewing by May 31st. This year Drake's standard price is $1,825 with a $ 300 discount for renewing by May 31st. So last year I renewed early for $ 1,225 and this year if I renew early, it will be $ 1,525 a $ 300 increase. A little over a year ago an International Private Equity Firm named Cinven made a large investment in Drake. https://www.cinven.com/media/news/cinven-to-invest-in-drake-software/ https://www.cpapracticeadvisor.com/tax-compliance/news/21209285/private-equity-firm-cinven-to-invest-in-drake-software Private Equity Firms like Cinven expect an investment like this to pay off 5 to 7 years so I expect we will see a number of significant changes at Drake. I really hope they don't start cutting their level of support!

This is like picking lint out of your navel

Basis minus depreciation equals adjusted basis. Sales proceeds minus adjusted basis equals gain. Gain minus accumulated depreciation equals Capital Gain which flows to Schedule D The accumulated depreciation reported on the 4797 flows to Form 1040.

The average Oregon Home Sale Price in 2005 was $282,000 The average Oregon Home Sale Price in 2021 was $447,000 If the house was located anywhere in the Willamette Valley, the % increase would have been higher.

That's not the case in Oregon. Here the housing market up substantially since 2005.

"The payment amount will be debited in a single transaction. No recurring or partial withdrawals will be made." "If a payment is returned by your financial institution (e.g., due to insufficient funds, incorrect account information, closed account, etc.) the IRS will mail a Letter 4870 to the address we have on file for you, explaining why the payment could not be processed, and providing alternate payment options. In the event your financial institution is unable to process your payment request, you will be responsible for making other payment arrangements, and for any penalties and interest incurred."

I am also with Drake and my acks have been coming back very quickly, so perhaps the turnaround problem is with the FTB.

Judy, take the rest of the day off, you have earned it !

Yeah, I think last year's filing delay to May 15th didn't help.

See Pub 547

We will see what happens

Interesting result after all of this discussion.

Just received 2 email scams sent to my business email, one allegedly from Home Depot and the other allegedly from Shell Oil. It was pretty obvious they were scams.

Typically we see the removal or addition of a spouse when their home or a vacation home involved. Whereas this involves an Income Producing Asset.

Even thought the taxpayer and spouse held the first deed of trust and now the deed of trust is held only by the the taxpayer. I would say this is just a bit more than a refinancing.

The IRS released revised FAQs on EIP3 a few days ago

Since she didn't sell the land what is her stepped up basis for the land?

You need to know FMV at date of death which would require a timber cruise appraisal.

My first knee jerk response is, isn't this a gift? My second knee jerk response is, how do you do this if one spouse is very mentally challenged? My third knee jerk response is, they tried to be too cute and may have outsmarted themselves.

I believe by entering the dividends on 4 g, you are electing to have them taxed at ordinary rates.

Interesting idea. Never had a client with enough Foreign Tax to consider it. I will be curious to see how it works out.