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  1. Without documentation that half of gain went to ex, then you have no choice but to report it. Then amend "if" he can prove it later on. You do not want a late filing penalty hanging over your head.
  2. Agree with that. However if a return is filed, a future tax preparer can at least get a transcript and find out what went into the bucket.
  3. Per 1.152-2(d), "The relationship of affinity once existing will not terminate by divorce or the death of a spouse." That was applied to Duncan in TC 2014-56 in allowing taxpayer to claim step-children as qualifying children.
  4. That would have been under the technical termination rule prior to 2018, which was repealed by TCJA. But even then, the "new" partnership would retain the ein of the old under a technical termination.
  5. As soon as you have the return prepared and ready to file (and after the 2019 is filed). I do not see any reason to wait, and prefer not to sit on it.
  6. The books can be closed for K-1 purposes by an election under 1377(a)(2) or 1.1368-1(g). Otherwise the pro-rata method is required where allocation is made based on number of days stock was owned for the taxable year.
  7. No, it expires at death. Case law has allowed surviving spouse a portion of NOL if they actively participated in the business. I don't know if its required but would fie regardless so it is on IRS records.
  8. The 30% tax can be a big hit so it is important to make the required distribution. They have 12 months after the end of the tax year to make the distribution. Excess distributions can be carried forward. You need to value any investments at fmv for the 5% rule. Subject to UBIT and self dealing rules. And of course important to determine if they are actually a PFD vs public charity. Sounds like you are getting it down. Is this a new organization you are dealing with?
  9. Just got done working with a local scholarship organization that had been self reporting on 990 when if fact they are a Private Foundation, so switched over to 990-PF. Also explained to them that they are a nonoperating instead of an operating PF.
  10. You did not provide enough information. Which means money spent for the charitable purpose it was setup for. That includes admin cost related to the charitable activities of the organization.
  11. No! You need documentation to prove that a portion of the gain was not his. If you allocate 1/2 gain to wife that was not hers it can come back to haunt you. It sounds like the property was titled solely to him after the divorce was settled. If so, I don't see how she could have any legal ownership or a share of the gain at that point. That does not sound like part of divorce settlement since it happened after the fact. He might find relief under 1-1041-1T (b) as a transfer of property incident to divorce, but I believe the transfer would have to go back to her share of the property instead of the proceeds of the sale. Also she would have to agree that she was a party to the property sale and 1/2 the gain was hers. He would need to get a lawyer to straighten that out. Unfortunately, he decided to save on legal fees and look where it got him. Without legal documentation, he might have gifted away $34,000.
  12. And for that reason, bonus depreciation is sometimes a better choice, more so now since it applies to used property per TCJA.
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