michaelmars

If the sale takes place within 6 or 9 [I forget] months of date of death the sales price is automatically assumed to be the FMV. unless you can show improvements made during that time.  In fact if you file with another amount then you have to amend the 706 if the difference would change the tax.

How do I know this? well here in the gold coast of Nassau County. The IRS often does title searches on taxable estates to see what the property sold for.  Aren't we special.  Twice we got notified that a 706 had to me amended. 

Don't forget that closing costs should give you a loss on the sale and any sale of inherited property is considered long term.

nope, the giver might have a tax to pay depending on facts and circumstances but the receiver, never.  Don't know VA rules though.

Hmm my college kid home for summer, I will charge him rent and get to deduct part of my house and depreciation, sweet. 

If they break up does the girlfriend get to stay there and share his bedroom anymore?  Is there a lease?  Is there a profit motive? 

client just emailed me to tell me that he will be sending his info next week.  I guess he thought I was sitting around wondering when I will get his stuff.

don't  have to allocate to each property, set up an extra property called admin building and put them all there.  same results less hassle and we do about 1000 returns like this per year, no issues with irs. 

I get $650-800 for inactive business returns.  that's my starting range.  I'm with B Hoffman, you are all too cheap. Of course your location and clients ability to pay will affect what you can charge.   

new scam going around. email comes from a person who says that he was recommended by one of your clients and you if you could glance at the attached copy of last years return and give an estimate of cost.

Not sure why the land is important to the calculation of g/l.  Pacon has it right.  Cost 400,000 [doesn't matter why the basis for depr  of 222,750 was picked]  Depr taken 70,000 leaving a basis of 330,000. Sold for 325,000. No gain.  The only issue open is if there is any part of the loss that is deductible.

its way too important to be down this time of year, for $500 or less I would buy a new machine [maybe with win7] and this way you can still work and have a back up.  Whenever I upgrade I keep the previous machine handy "just in case"

I  like the OP's method better.  file with a balance due and await the notice.  I think that's better than using estimated amounts for a document that you are supposed to have in your hand before filing a return.  And I am sure all states match the withholding with the records of the employer.  We get notices of discrepancies all the time here in NY

in NY you can elect to pay an amount based on your income, range is like $10-$250.  Using this makes you audit proof even if you have thousands of dollars of out of state purchases. Its called sales and use tax so if you buy something out of state but use it in NY then you pay the tax.  My staff knows I consider it malpractice not to elect this unless the client is 90 years old and doesn't have a computer. 

lol, should of said no other worldwide income but the us income.

7 hours ago, Jack from Ohio said:

Bouncing an agreed payment will only trigger fees and interest.  I would not recommend that course of action.  This should have been thought out and discussed BEFORE filing the return.

OBVIOUSLY, and it was, that's why I am trying to stop the payment, we will be liable for the bounced penalties.  this was a miscommunication between the preparer and the reviewer [me]. 

a clients return got filed with a balance due and automatic withdrawal set for 4/15.  The client wanted an installment agreement file with the return.  I know I can have the client empty the account before 4/15 but was wondering if there is anyother way to supercede the return since its way before 4/15.

I use proseries and it says the social security number is not in the valid range.  I am taking it off of the W-2 the state of Maryland filed.  No worldwide income, on what was earned in the US.

need help with this one, Long time client gets married to a resident alien who is on a student visa and going to school here.  Can I file a joint return?  Also, the student works for his college and the w-2 has a social security number but software says its not a valid ss#.   He also has a "USCIS ALIEN NUMBER"

I know I can paper file using the ss# but I want to make sure they can file jointly.

And just to make this more fun, they live in DC but his school is in MD and has MD withholding.  I never really handle non citizens and I also don't deal much with MD or DC. 

I summarize them too into one

don't you just love the 1127 form?

sorry to correct you but local can also be Yonkers. 

SOME states have gift taxes too

had a new client come in last week, native of india with india income but a Canadian citizen filing in the US.  Husband an India w-2, brokerage account in Canada and she is self employed here in NY. 

She dropped off all her stuff over 2 days [2 trips] and email.  Then she started calling each of the next 3 days as to when her quarterly estimates would be ready for 4th quarter 2016.

I wished her well and told her she can pick up her papers at my reception desk 9-8 7 days a week.

there are many inexpensive loan calculation apps and programs.  No need to recreate spread sheets.  I like TValue.  I think tax tools has some too as does quicken and maybe quickbooks.

I think you are overthinking this.  I have a client that has done this for years.  Even though its one mortgage, the closing papers will have a breakdown per building, especially if there were prior mortgage payoffs involved.  Cash out based on appraised values over the mortgage amounts.   In NY we also have a mortgage recording tax which would show the allocations.

 Insurance company will have a break down as to how they priced out the global policy.  Usually a "per apt" cost.   AS for selling one of the buildings.  If his lawyer was worth his fee, he will have a right to substitute property or there would be a clause allowing prepayments of the mortgage without penalty. [maybe not for the first 2 years though]

Clients do this because cross collateralizing gets them a very low rate, even here in NY its under 3% for rental properties.  And having one mortgage also cuts down on closing costs.

Biggest one that one of our clients did was about 30 properties in a master mortgage which was somewhere around $200,000,000.

I agree and often help out clients that hit hard times.  If they were previously good clients, and easy to work with.  Pia's then no.  Its these people that appreciate you and often wind up recommending you to good clients

why would any of the stock option be allocated to NY?