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  1. How about form 8879? I am really not that concerned about it, but if it becomes a common practice maybe IRS will look into the massive wave of rejects that occurs every year on October 15. By the way, if we happen to become cell mates, I get the top bunk.
  2. Have also done that but keep low key about it with clients. If IRS catches on could be an issue with filing an incorrect and incomplete tax return.

    'Equity Gift' in house sale transaction

    As Judy stated, looks like their is some stepped up basis involved.

    'Equity Gift' in house sale transaction

    From what I can tell, the house was appraised at $450,000. Client did a partial sale of $400,000 and gift of $50,000. Results in gain of $25,000.

    'Equity Gift' in house sale transaction

    I am confused as to who is involved in this transaction? Client, son, ailing parent, community spouse, marital house? How much actual consideration did client receive for the house?

    LLC and Truck Expenses

    No, because he and the business are the same entity. LLC has no meaning for tax purposes.

    Vehicle Donation of $5k+

    Who had title to the car when it was taken to repair shop and who's name was on repair invoice?

    Salary from a non-profit

    What about SE tax if showing a profit? The right way is the only way.

    like kind exchange

    In order to compute the basis of new truck you need to know how much compensation was given; down payment, loan...

    $500,000 NOL

    I agree with Catherine, don't rely on software. You should understand NOL computation upside down and backwards before proceeding.

    $500,000 NOL

    Not sure what your question is.

    CPE recommendation?

    Hey that reminds me of a post a couple years ago where a member here was spotted in a photo while snoozing at a live seminar. Personally, I prefer webinars so I can snooze at my own desk.

    Capital Gain/Loss or Wash

    It does not matter how decedent used the property. For example in Marx(5 TC 173) court determined a yacht willed from husband to wife was investment property where wife put it up for sale after death of husband and was loss was allowed. The fact that she never used it for personal use proved her profit motive under section 165(c)(2). In another case, Watkins (TC MEMO 1973-167) husband was willed personal residence from wife. The court ruled property was held for investment since heir / husband decided to put it up for sale within a week of wife's death. Therefore he proved his profit motive per section 165(c)(2). It did not matter that the house had been his residence while wife was alive. It also did not matter that he lived in it for a short period of time after it was bequeathed to him. What mattered was that he was able to prove his intent was to sale it and was allowed to deduct loss. So in the case of your client, it appears his thought was "heck I might as well sale this junk and make a little money off of it". There is your profit motive per section 165(c)(2).

    Capital Gain/Loss or Wash

    Terry, if your decision is to treat this as personal use property I disagree. Did the heir use it for personal use or entertainment? I would treat it in the same manner as a personal residence that was inherited and put on the market without being used personally or as a rental. It has been held by case law that type of property is investment property.

    Capital Gain/Loss or Wash

    I have dealt with that situation. The cost of logging can take a out a huge chunk of change when timber is in rugged terrain and a long haul from the mill. In reality, the heir has no economic loss for netting less than the standing value on date of death due to logging cost.