michaelmars

just put it in as another bank interest not, seller financing etc.

my e&o is for $2,000,000 and costs about $1300 per year

most of my clients that had cost segs recently were 60-100 unit apartment buildings and the cost fee is $5000-$7000. in every case the immediate savings were greater than the fee so they saved money from year one. to jshtax: since the 5 year asset is now fully depreciated you get to claim the full amount over the amount that was claimed. a 10,000 asset at 27.5yrs would be an annual deduction of 363.00 so lets say its year 10 and the amount should have been the full $10,000 and $3,630 would have been claimed. then this year the deduction would be $6370. if the client is in the 50% bracket then this one asset saves 3185 in taxes or 1/2 the cost of the cost seg study. Residential buildings get much more allocated to 5 & 7 year property than commercial in most cases and thus it makes more sense to do the study.

I think Jack deserves a warning for that pun.

its very involved, for the 3115 you need to recalc the depr as if it were depr under the shorter life then subtract out the amount taken. the difference is the current year adjustment or extra depreciation. I usually put the new life assets separately on the schedule and subtract the corresponding amounts from the original building on the books. ie I create new asset called 5yr-cost seg, 7-yr cost seg and 15yr-cost seg. plug in the opening amounts as previousely taken and override the adjustment to current year deduction. you also have to do these calc for alt min purposes for the 3115. the 3115 has a bunch of questions that need answering and I do it on a separate schedule and attach. don't forget to discuss bill with client, my charge is about $1000 per building. if this is the year of purchase then of course you just start the depr as per the study and no 3115 gets filed.

LOOK AT THE form this year, if the basis is reported you don't need to show each sale anymore.

i do this too but for those that press me, I tell them they can get me a bottle of scotch but since I drink Macallan 25, H&R would be cheaper.

Ms Tabby is a better person than I. I give it 2 tries and then give them a paper return to file. I have one client that is now 91 and was married for 50 years and she worked yet never changed her name with SS so I have been using her maiden name since efiling started. there is a different matching system for efiled vs paper filed returns.

I switched to pro series last year after seeing all the posts with what was going on with ATX, not a bad learning curve and not one tech issue in 2 years, changes need to be done to hardware or configs or files or anything.. their community board stinks but live chat and on phone both get you someone in under 5 minutes and I feel they are running 85% at solving an input issue on the first go around. Not as many forms and letters stink, but I hit print and get a perfect return printed, I hit efile and get a file transmitted and accepted.

I am with Jack on this one. And we have so many foreigners that just ignore or don't understand things that by having our address, we get the notices and can respond instead of getting them months late.

THANKS, ALL I tend to agree but then you get the calls from some partners that complain, I didn't get money I put money in during the year. they just care about the net.

just looking for consensus or best practices. If partners contribute capital and then take a distribution in the same year [assuming the same partners, percentages etc] do you show the in and out on the tax return or do you net the amount?

not just health care, when anyone with a little power runs amok. I can't believe this really happened, but I know it did. I would love to hear the doctor's and the hospital's side of things. If I were the parent I certainly would not have stayed quiet for a year.

I once had a cashier that tried to keep my $100 saying it was fake, I asked her if she passed a certification class at the us treasury and if she was certified as a forged document tech. blah blah blah. No way would I let a kid that is using a $20 pen say my money is fake and keep it. They don't have to accept it but they can't keep it, who says they are right. I told her the only way she can keep it is if she replaced it. And since I probably came from my prior transaction at that store then I was going to charge them with passing counterfeit money. And if she didn't hand it back then I am calling the police to report a theft.

KIddie tax kicks in based on net income not the gross sales price. this sale belongs to the kid and the loss carryover will stay till the kid has taxable income.

i agree with Rich as to the personal residence part. Not sure on a commercial transaction, there might be some way to consider it cap gain not ordinary.

get him to use quicken, it will look just like his check book at home so he should be comfortable with it.

if atx survives this year it will be, in a large part, due to you.

I know I have a lot of research to do on this but a client sold a building in Detroit in an installment sale. I was wondering if Detroit allowed non-residents to do an installment or is all the income due now.

I am not sure I agree about the "audit" comment. as far as I am concerned, I report income based on business records and assuming they are accurate, there is no reason to have to deposit all income. Retail stores routinely take $ out of the register for window washers for example or needing cleaning supplies etc. As long as the income is reported then that's fine, in fact its more suspicious when a business tells me all their income in on their bank statements. In the situation o/p the person is a tax professional who bills out and probably has quicken or quickbooks to keep track of income so a P&L report is more accurate than bank accounts.

gift can also get a minority discount if the son is a limited partner with other restrictions as to transfer rights etc. other debts like tenant security deposits, might give the son some basis if he becomes liable for them. The bank might also add him or the LLC as a guanantee on the mortgage. The bank will also have to sign off on the transfer but any mortgage my clients have done in the last 10 years have the clause in it that then can transfer the building to an LLC and/or to family members as long as the original mortgagor stays personally liable.

me three

its the way all banks are going, chase and citi are doing the same. ummmm why put cash in the bank

inherited property is automatically considered investment property as long as the bene didn't live in the house, losses are allowed even if the home was the parents personal residence. up keep to the home is can be added to basis in some circumstances.

Types of Qualified Organizations Generally, only the following types of organizations can be qualified organizations. A community chest, corporation, trust, fund, or foundation organized or created in or under the laws of the United States, any state, the District of Columbia, or any possession of the United States (including Puerto Rico). It must, however, be organized and operated only for charitable, religious, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. Certain organizations that foster national or international amateur sports competition also qualify. War veterans' organizations, including posts, auxiliaries, trusts, or foundations, organized in the United States or any of its possessions (including Puerto Rico). Domestic fraternal societies, orders, and associations operating under the lodge system. (Your contribution to this type of organization is deductible only if it is to be used solely for charitable, religious, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals.) Certain nonprofit cemetery companies or corporations. (Your contribution to this type of organization is not deductible if it can be used for the care of a specific lot or mausoleum crypt.) The United States or any state, the District of Columbia, a U.S. possession (including Puerto Rico), a political subdivision of a state or U.S. possession, or an Indian tribal government or any of its subdivisions that perform substantial government functions. (Your contribution to this type of organization is deductible only if it is to be used solely for public purposes.) Example 1. You contribute cash to your city's police department to be used as a reward for information about a crime. The city police department is a qualified organization, and your contribution is for a public purpose. You can deduct your contribution. Example 2. You make a voluntary contribution to the social security trust fund, not earmarked for a specific account. Because the trust fund is part of the U.S. Government, you contributed to a qualified organization. You can deduct your contribution. Examples. The following list gives some examples of qualified organizations. Churches, a convention or association of churches, temples, synagogues, mosques, and other religious organizations. Most nonprofit charitable organizations such as the American Red Cross and the United Way. Most nonprofit educational organizations, including the Boy Scouts of America, Girl Scouts of America, colleges, and museums. This also includes nonprofit daycare centers that provide childcare to the general public if substantially all the childcare is provided to enable parents and guardians to be gainfully employed. However, if your contribution is a substitute for tuition or other enrollment fee, it is not deductible as a charitable contribution, as explained later under Contributions You Cannot Deduct . Nonprofit hospitals and medical research organizations. Utility company emergency energy programs, if the utility company is an agent for a charitable organization that assists individuals with emergency energy needs. Nonprofit volunteer fire companies. Nonprofit organizations that develop and maintain public parks and recreation facilities. Civil defense organizations.