Latka_123

Thanks Abby! For the cost basis, I use the capital account withdrawal as the ending basis. Not the original amount paid. Then the gain subject to recapture as ordinary income listed in the K-1, is reported on the 4797 as ordinary income, this amount is subtracted from the capital gain amount. Say the Sales Price is 10,000, and the basis is 6,000, and the gain subject to recapture is $3,000, you would have a $1,000 capital gain and a $3,000 ordinary income gain. For a loss transaction, say the sales price is $10,000 and the basis is $15,000, and the amount subject to recapture is $3,000, you would have a $8,000 capital loss, and a $3,000 ordinary gain on the Form 4797. I am hoping I am seeing this correctly. Thanks for your help.

IS THERE A PARTICULAR PLACE OR BOX WHERE THIS HAPPENS? OR DO YOU JUST DECREASE THE LT CAPITAL GAIN BY THE AMOUNT OF THE DEPRECIATION RECAPTURE, AND MANUALLY ENTER THE RECAPTURE ON THE FORM 4797, PART II, LINE 10. SORRY, FIRST TIME I HAVE HAD TO DO THIS ON THE MAX PROGRAM. AND I CAN'T SEEM TO FIND ANYTHING ON THIS WITH THE PROPER SEARCH TERMS. THANK YOU.

Prayers and strength to you and the family.

Thanks for the input! I live in the KC metro, so 75% of the returns I do are multi state, MO & KS. So multi state comes with the territory. The old state is CA, and the new state is W V. It looks like the residency state for the whole year was CA (which it should not have been) and the worked in state was W V. The state withholding is about 20% CA and 80% W V. Which makes sense, since the the marginal rates are about 9.3% in CA, and 6.5% in W V. (Taxed in work state first, and then taxed in resident state second) My guess is the new employer has nexus in the old state, so it didn't even hit the radar screen. I prepared a NY return many years ago, and was just surprised at what I experienced. Even as a "non-resident" you are basically preparing the return as a resident, and have to prove the other sources as outside of NY. Eye opening. Of course this is also a mess, preparing 2012, 2013, and 2014 returns. Thanks all. Really appreciate it.

I am befuddled with this one. Taxpayer moved mid-year to new state, for a new job. The "new job W-2" has new state wages at 100% and old state wages at 100%. My only guess is they started the new job just before they moved and didn't change their address until the succeeding year. But they moved in July, and the old state should not get any slice of the pie. The old state will probably not accept an explanation of "coding error" on the state return. Thoughts please. Thanks in advance.

Too late for me. Happen on Friday, May 27th AM to my computer. And guess what, ATX support was closed on Friday, so I am waiting until Tuesday for the fix to the ATX software. Who knows how long the line is going to be for support.