ljwalters

I am reposting.

This is a rental and I found the old posts and how to handle the 1099a and 1099c. In this case there are 2 separate series of 1099s and both 1099As are from the same financial institution and both have the same amount as FMV. But the client only received one 1099C. Does this mean she will not receive a 1099c on the 2nd mortgage or do we still need to wait.

And I am assuming I only use the FMV once as the sale price of the rental.

This is all so confusing this year.

Thanks in advance

Linda and buddy

The only exception to the 50% rule that for meals that I am aware of is the DOT rules which for 2008 is 80%.

Linda and buddy

Is this by any chance a roth Ira.

Linda and buddy

Final note.

All the llc distributions went into the parents account for support of parents.

Linda and buddy

GeorgeM

Sorry to have to tell you this but the day trader statements usually do not have the Profit and Loss statements in the right format.

And be sure you read up on wash sales with the day trader you will most certainly have several.

I charge per line when doing the daytraers, it's a real pain.

Good luck and get a real cussy chair

Linda and buddy

When the list of stock sales is to long to type in the program I know you can put in totals and send the P&L schedule from the brokerage house. How do you code the sale date for e-filing. When I put various I get an Efile Error.

Linda and buddy

Ibbwest

No gift tax return was done.

I don't know where the lawyer got his figures unless it was the value of the farm divided by 3.

The llc preparer calculated the gain.

There was no wording of gift in the deed or the llc papers. Simple fact, giving the farm to kids for $1 suggests it was a gift.

the 40,000 comes from the fact that the parents can without filing gift tax each give the kids 10,000 and the spouses 10,000 which adds up to 40,000. I was just brainstorming for the purpose of finding the proper way to approach this situation. I do agree that if gifted the original basis of the farm would carry over the kids.

We all know if the value of the farm was enough to cause a tax due from inheritance the gov would null the sale. Its not can the kids do anything to save themselves.

I am to receive a copy of the llc papers some time today and I will look to see if there was anything included that states no sale until the parents pass.

When I have all the facts I intend to call the llc preparer and discuss our options.

Linda and buddy

How sweet Thank you all very much.

When my daughter was working in my office sending out organizers in January she marked of 3 days on my calender for next week and I didn't know why. To day she gave me an itinerary (sp) for a trip to Vegas to see Bette Midler. I am so excited and angry at the same time.

I never get to go the shows I want so that part is great and I love Bette Midler, I am angry because doesn't she know, is she like everyone else in my family that doesn't understand I'm just to busy right now. I can hear my husband now "WHAT DO YOU MEAN YOUR LEAVING TOWN YOU HAVE THE TIME TO GO SEE SOME STUPID SINGER BUT YOU DON'T HAVE TIME TO COOK ME DINNER BEFORE 10:00.".

Back to work

Linda and buddy

This property is in Nebraska. Nebraska has the same laws for determining state medical benifits as CA which is a 5 year look back and a $1 sale of assets would disqualify them from said benifits.

The parents were unable to continue to take care of the farm, overseeing the lease and maintaing the rest of the farm and the children took it over.

I still have problems finding the letter rullings and court cases that pertain to specific cases. If the fact that the hiers put the farm in an LLC cause a problem with inherits, I can accept that.

It just seem crimminal that BAD tax and or leagle advice can cause such a hardship on the taxpayers.

Linda and buddy

Thanks for all your input

Thanks JRS

That finishes one more return.

Linda and buddy

If it is a community property state than the answer should be 50/50. If you are going to protate it should be based on 07's income not 08s

That is where the refund generated. Also concider the date of seperation. and the amount of withholding each had thru the year (07).

My 2 income clients I suggest that the higher income earner claim the exemptions and the lower income earner always claim 0/0 on w4.

Linda and buddy

I was wrong on one point.

The deed states that the parents gave title to the children (3) for the one dollar. Then the children formed the LLC to handel the income.

Later the mother gifted an additional 42000 into the llc. The parent were intitled to stay in the farm house until they died. The land was leased to a farmer which is where the income came from. The lease was in existance when the original title was changed. The income in 2007 was 12000 from the lease. The children paid the tax on the income thru the llc k-1's. Mother died in the home, father died 2 days later in the hospital. My client doesn't remember if the title actually states that parents had right to stay in family home. He is bringing me the deed to read.

I feel that it is gift, with stipulation and hence inherited, and steped up basis. Sence I did not to the llc return I wanted more imput in the form of oppinions. Then I have permission to call the preparer (not cpa or even EA as far as I can tell) and discuss the options.

Linda and buddy

Clients aging parents gave there 3 grown children thier working farm 5 years ago in the form of an LLC. There has been a K-1 ever since.

Here is the kicker.

First the lawyer had each childs basis as $90,000.

parents die, now the accountant says "well actually the tital change document stat that there was a $1 exchange for the ranch.

The parents did live at the ranch until they died (last year).

NOW the K-1 for the sale of the farm showes a capital gain of $95000. This was basicaly inheritance.

If nothing else ther would have been $40,000 in gifts to each child and spouse at the time of transfer.

What are your opinions are these taxpayers just as they say SOL.

Linda and buddy

I have a final K-1 and thought there was a place to indicat final on the K-1 input or is that only if you are preparint the partnership return.

ALSO I have a figure on line 20 of the K-1 with V indicator and a -2 amount. The diagnostics says it is not flowing and I have no Idea where it goes. Please help V indicates unrelated business taxable income.

Thanks lind and buddy

I just read the letter ruling 200524001 5/17/2005 that RoyDaleOne posted.

Thanks I missed that. I love this board. I intend to ament a couple of returns.

Linda and buddy IRS Letter Rulings and TAMs

I did this same thing last year. Wife filed seperate, husband had not filed. Husband was my NEW client. I put her first on the return him second. We started getting letters from IRS that he never filed. A few phone calls straighted everything out. Even with the additional calls it was the easiest way to file.

Linda and buddy

I agree MfS, mailed, with unable to get SS#. DO NOT file single. Advise her NOT to file MFJ. Explain she could be liable solely for all his debt.

Lnda and buddy

The insurance would have to be started under the business. Is this the case? If not the way I read the regs there is no self employed healthe insurance adjustment.

If I'm wrong I have a few amendments of my own to do.

Linda and buddy

I have moved files from one coputer to another and all the E-File info imports also.

Hope this helps

Linda and buddy

Thanks for all your input. The cost of half the mattress, which is the most I would conceed to even with doctors prescription, didn't survive the medical hair cut so to speek. So moot point.

As I startred to think harder a hospital bed is deductible, so why not a special mattress.

Linda and buddy

Yes the Doctor did write a prescription. But not everything a doctor prescribes is necessarily deductible.

Example: doctor wrote a prescription for my husband to soak x number of hours in a whirlpool or Jacuzzi per day the only way that was going to happen was thru a spa or gym.

Spa and gym memberships are not deductible. The insurance did pay for them for a short period of time, but he still needs the time. Still not deductible and not getting the aqua theripy he needs. Boo Hoo !!! now on to the client.

So …what do you think about this 2500 dollar mattress.

Linda and buddy

Client had bad back injury and doctor told him he needed a new mattress (he had a memory foam mattress 2 years old). Client wants to deduct as a medical expense. If deductible 100% or 50% wife uses the same mattress?

Linda and buddy

Morgan Hill CA

I havn't noticed the virus you mentioned but printing the SchE worksheet does crash my computer every time. That is the only issue I have had. Thanks for the heads up though I will watch for said virus.

Linda and buddy

Morgan Hill CA

GeorgeM

Try using Option 1 using practitioner pen.

I have never had a problem when filing a new (first year) tax payer that way.

Linda and buddy

Morgan Hill CA

Thank you Terry D. You have just upped my confidence that I have not gone totally MAD.

Linda and buddy