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    Form 1041

    Decedents would get the step up in basis under the 1.1014-4 uniformity of basis rules. Looks like you have two choices, report by estate and k-1 sons, or report on 1041 and back out since the property actually belonged to son at time of sale.

    Agricultural Program Payments

    Marie is correct, CRP payments are included on F but excluded on SE. Other ag payments not excluded from SE.

    Contest - claiming dependent child who wins?

    I have won a similar situation on appeal by proving dependents spent the most nights with my client. Final document to appeal officer was 33 pages. If you get to that point I will gladly help you organize for appeal.

    199A for a dependent???

    Does this activity rise to the level of a trade or business under sect 162? Also advice the kid not to go over the threshold for SSTB exclusion!

    Farmer's Insurance Proceeds, QBI Qualified?

    So instead of reporting $1.5m as income from crops he is reporting as crop insurance income? Then why not? Was the payment for damages to trees or vines instead of the actual crops?
  6. per final reg: (xiv) Meaning of trade or business where the principal asset of such trade or business is the reputation or skill of one or more employees or owners. For purposes of section 199A(d)(2) and paragraph (b)(1)(xiii) of this section only, the term any trade or business where the principal asset of such trade or business is the reputation or skill of one or more of its employees or owners means any trade or business that consists of any of the following (or any combination thereof): (A) A trade or business in which a person receives fees, compensation, or other income for endorsing products or services, (B) A trade or business in which a person licenses or receives fees, compensation, or other income for the use of an individual’s image, likeness, name, signature, voice, trademark, or any other symbols associated with the individual’s identity, (C) Receiving fees, compensation, or other income for appearing at an event or on radio, television, or another media format.

    1099 Valuation Issues

    It's a waste of time to battle over 1099's. As JohnH suggested report the full amount and back out any excess.


    And a windfall for those already invested.

    New Regs for Section 199A

    Both the prop reg released in August and the final version released last week are well written and have excellent examples. I took the time a couple months ago to read through the proposed reg and work through the examples. Working through the examples was a great learning tool for me. The real meat of the final reg are the operational rules starting on page 156. There is a table of contents starting on page 151 which makes it easy to navigate through the operational rules.

    QBI Scenario

    Terry, The TCJA BLUE BOOK and the proposed reg specifically stated that sec 162 will be used in defining a trade or business. That was clarified by the final reg which specifically states on page 14 that section 469 will not be used. I would ask your CPE instructor where he came up with his 469 statement.

    QBI Scenario

    Judy I believe a partnership is a disregarded entity described in 301.7701-3. § 301.7701-3 Classification of certain business entities. (a)In general. A business entity that is not classified as a corporation under § 301.7701-2(b)(1), (3), (4), (5), (6), (7), or (8) (an eligible entity) can elect its classification for federal taxpurposes as provided in this section. An eligible entity with at least two members can elect to be classified as either an association (and thus a corporation under § 301.7701-2(b)(2)) or apartnership, and an eligible entity with a single owner can elect to be classified as an association or to be disregarded as an entity separate from its owner.

    QBI from Sch E

    06 Procedural requirements for application of safe harbor. A taxpayer or RPE must include a statement attached to the return on which it claims the section 199A deduction or passes through section 199A information that the requirements in Section 3.03 of this revenue procedure have been satisfied. The statement must be signed by the taxpayer, or an authorized representative of an eligible taxpayer or RPE, which states: “Under penalties of perjury, I (we) declare that I (we) have examined the statement, and, to the best of my (our) knowledge and belief, the statement contains all the relevant facts relating to the revenue procedure, and such facts are true, correct, and complete.” The individual or individuals who sign must have personal knowledge of the facts and circumstances related to the statement.

    QBI from Sch E

    Per Section 3, .03, (C) of the safe harbor: The contemporaneous records requirement will not apply to taxable years beginning prior to January 1, 2019.

    QBI from Sch E

    SECTION 4. EFFECTIVE DATE AND IMMEDIATE RELIANCE The proposed revenue procedure is proposed to apply generally to taxpayers with taxable years ending after December 31, 2017. Until such time that the proposed revenue procedure is published in final form, taxpayers may use the safe harbor described in the proposed revenue procedure for purposes of determining when a rental real estate enterprise may be treated as a trade or business solely for purposes of section 199A.