michaelmars

don't forget that any payments made should clearly state "for trust funds only" Officers are basically just held responsible for payroll taxes withheld, not for the company's portion.

Move to NY, we now have bereavement leave of 3 months. [pending governors signature on bill] NY bill mandates 3 months paid bereavement leave, even when grandparents die

why not take the interest and taxes on the clients "second home"?

Yep, that would be me

Even if you prepared all the years file the open years first since penalties are still running on them. The older years have maxed out the penalties already. Unless of course the client is prepared to pay all that they owe. Get an agent involved up front, they might agree to take the current 3 years and forgive all the others.

Funny how NY also is fighting for this deduction but they don't give it themselves to NY residents. NYers can't deduct any state taxes or property taxes on their NY return.

Bart and Gail have it right, its a disregarded entity and you file as if there wasn't an entity thus sch D and B.

the 481 is an ordinary deduction and the lower basis adds the same amount to capital gain income. the client comes out ahead on the rate difference.

agree with that but if it wasn't attached the irs would have denied the deduction and then i would have had a different fight on my hands. Plus for this much money the client might have decided to have a tax attorney handle it and then claim my lack of proper filing of the 8453 would make me responsible for his fees too. If you have the appraisal, there is no reason to not supply it properly. [not suggesting that is what you are saying to do]

Just like the LLC fees, every year we miss a few, especially single members and never get a notice.

Wrong, i had a client audited for this. These audits are all done out of Washington DC, gifts of appreciated property. Funny is that my client donated a collection of rare items and the IRS agent told me that when he contacted Sotherbys, Smithsonian and I forget the third place, that they told them that my client is the leading expert to appraise these items. We did have an outside appraisal and they eventually accepted it with out too much back and forth.

so if mom bought it how did she inherit it from her husband a few years ago. This isn't the whole story. Client probably doesn't even know the whole story. After all my kids don't know how me and my wife juggle assets.

I can't agree with this. If you are too busy send them walking, but if you accept the client then you have to do right by them and if you lose them a 2014 refund they could have a claim against you. I had one of these and we got the returned filed 1 day before statute ran out and it was a 90k NY refund.

i am going to start using California as my go to foreign country.

Abby has the correct answer.

when did the title change to the beneficiaries? They might have to amend their returns and claim the depreciation. If you don't then the basis still has to be lowered by the depreciation that should have been taken. Sounds like the estate accountant really messed up. Was the house left to the beneficiaries or to a Trust for the benefit of the beneficiaries? there are a lot of questions to be answered before you jump on this return.

The preparer of the partnership does not determine the 754 step up, that comes from the preparer of the 706. It is the executor's responsibility to inform the partnership of the election amount. Remember a 754 can go up or down and also if real estate part of the step up needs to be allocated to land. I haven't used ATX since the 2012 issues but i recall at that time it sucked at keeping track of the step up and getting the program to just allocate that depreciation to the applicable partners. I strongly suggest an excel spreadsheet, especially if there are multiple 754's.

Actually this is pretty basic and has been required for a number of years now. There is a separate release for individuals and businesses.

did you receive a "no change"? if so you can get them stopped (usually)

NCCPAP is fighting this too and expects changes very soon.

sounds like a flipper and therefor the income is ordinary. Property is inventory as are the improvements

I just went through an audit and the agent actually told me that it was selected because of 3 years of losses. This client went into the business of selling high end homes 3 million and up on average. 2013-no income just expenses, 2014-small income since she was apprenticing and only got a small percentage of commission. Expenses exceeded income. 2015 was more income but still showed a net loss. What saved us from having to argue the hobby rule with the agent is, a] she understood the business and knows the local market and b] 2016 had nice commissions and 2017 had a few large ones too.

Why do you want to minimize depreciation, what is wrong with NOL's. If eventually he sells or has income the nol will go against his income at income tax rates. He will recapture the depr at capital gain rates. He is ahead by the spread. As many of you know, my practice has a lot or real estate professionals and many have negative income [which is probably why Trump doesn't want his returns released]. In fact, if not already done, when a client tells me he is selling a building or in contract I immediately have then get a cost seg study done. Often I filed the 3115 claiming extra depreciation in the same year as sale. The savings is basically 10% of the extra depreciation.

WITH all the POS systems at restaurants I am sure people will be tipping less.

Don't forget that this is the new due date for 1041's. [actually 10/2 this year.