Jump to content
ATX Community


  • Posts

  • Joined

  • Last visited

  • Days Won


Everything posted by DANRVAN

  1. No, but have worked with a public charity that had to be reclassified as a PF, and have researched the issues to convert back to a public charity. I am curious to what criteria you are using to establish the organization has met the requirements of a public charity since the date of incorporation?
  2. The amount on line 13 of the K-1 is netted with the amounts in box 1 and 2 of the K-1 and should flow to Schedule E page two as a lump sum. That is correct.
  3. If that is the case she is in the zero percent capital gains tax bracket. It is not taxed at ordinary rates.
  4. Since it is a capital gain, the unrecaptured amount is combined with all the 1231 gains on form 4797 and carried over to schedule D in one lump sum. However, when it comes to the capital gains tax computation; the 1250 gain is segregated to determine any amount that might be taxed at the 25 rate. It is especially important to understand the unique tax aspects of section 1250 in the planning stages.
  5. The difference between ordinary gains and capital gains is anything but trivial, as well as the tax planning consequences. Section 1250 is probably one of the most commonly misunderstood sections of the tax code.
  6. Unrecaptured 1250 gains are included in the computation of adjusted net capital gains per sec 1(h)(3)(A)(1). Therefore they are reported on schedule D (flows from 4797) and the related Capital Gains TAX worksheet. From a practical and planning standpoint they are capital gains and offset capital losses.
  7. I think you meant to say where it is taxed at capital gain rates. 1250 gains are a hybrid; ordinary gains taxed at capital gain rates with a max rate of 25%. The special tax treatment comes from the strong lobby arm of the real estate industry.
  8. How can he still receive payments if the contract was paid off? Just because attorney decided it should be? How can you convert an installment contract to a note and consider it paid off....and seller still holds a deed of trust? Forgive me if I am overlooking something here and jumping to conclusions; but this guy sounds like a predator.
  9. Thanks for pointing that out, so it appears legal ownership did not pass to the buyer. And there is still an installment contract in place?
  10. That is a good point. My thinking is substance over form, but certainly need to look at the legal aspect of the transaction. So now who hold legal title to the property? Does taxpayer have any security?
  11. Looks to me like the TP is in the same position he started in, except he now holds full title to the contract instead of joint and incurred a bunch of legal fees. How is that possible if the terms and amounts never changed? Looks to me like there is still a contract that includes principal and interest.
  12. That raises the possibility of a step of basis of growing crops on date of death if deceased spouse was a farmer, or material participating landlord, per RR 58-436. If that were the case, crop insurance received after DOD would be income to estate, not IRD. That depends. If all assets passed to wife and there was not any legal cost to deduct by estate; the 1041 would be a wash by reporting income to estate and deducting as distribution to wife. Also depends on who 1099's were made out to.
  13. Not sure why you are asking. My position is that I am unaware of any authority which states an appraisal of the timber is necessary if a reasonable method is used to determine the DOD value.
  14. Yes, if there was not a significant change in the market price from date of death to the date it was logged. Subtract the basis of the timber sold from the basis of the land. If you are dealing with a short time period, you don't have to account for the increase in volume due to the growth rate of the trees from date of death to harvest. I have worked with timber consultants in cases where several years have passed to determine the volume and market price of the harvested timber on date of death.
  15. The 8283 attachment has been available in ATX for several years now, I was surprise 8453 would pop up.
  16. In ATX you attach either 1098-C or a copy of the contemporaneous written acknowledgment directly to 8283. The input gives you a choice of check box for 1098-C received or check box for contemporaneous written acknowledgment. Not sure why 8453 would have popped up.
  17. Kind of hard to tie this all together. He received a CP2000 and then under examination (audit)? If under audit should have received a 30 day letter before the 90 day letter. Should still be good if in fact a 90 day letter and clock is still ticking.
  18. Tell him if it is mix use he will need a to keep a log of time spent on rental projects vs personal use as he would other listed property, like a car. Then you depreciate based on percent used for the rental. So probably not much in yearly tax savings. Also point out no section 121 if he ever decides to sell. Since most rental repairs are done on site, I can't imagine him doing much related to the rental in a workshop.
  19. You still need to provide some more detail: -cash received -amount of loan paid off (70,000?) -exchange expenses You indicated $50,000 to fix up new property that came out of exchange funds. That was not part of the exchange, so it is treated as cash received, boot. Also the loan payoff is treated as boot. So at this point it looks like at least 120,000 in boot which is taxable gain.
  20. Yes, since she is considered a nonresident and the income is considered non-source to Oregon per ORS 136.127. If she moves back to Oregon, it become taxable to her as a resident.
  21. Does she pass this test? 1. You didn’t have a permanent residence in Oregon for yourself or your family during any part of the tax year, and 2. Your permanent residence was outside Oregon during the entire tax year, and 3. You spent less than 31 days in Oregon during the tax year.
  22. That sums it up right there per 28OA(c)
  23. In regards to residency, they are basically treated the same. From Oregon Pub 17 page 20, A. Special-case nonresident. You are treated as a “special-case” nonresident of Oregon if you are stationed outside of Oregon and all three of the following are true: 1. You didn’t have a permanent residence in Oregon for yourself or your family during any part of the tax year, and 2. Your permanent residence was outside Oregon during the entire tax year, and 3. You spent less than 31 days in Oregon during the tax year. And if that does not apply there is another exception: B. DFAS address outside of Oregon. You are treated as a nonresident of Oregon, no matter where you are stationed, if both of the following are true: 1. You are performing “active service,” as defined in 10 United States Code (U.S.C.) Section 101(d) (3), other than annual training duty or inactive duty training, and 2. You are a resident of another state according to DFAS payroll records. I question that. If she was from VA and stationed in Oregon, the VA based pension would not be an Oregon income source. I don't know about VA, but I think the concept of state sourced income is universal.
  24. She would NOT be an Oregon resident if she meets the following per ORS 316.027: "• You don’t maintain a permanent residence in Oregon for yourself or your family during any part of the year, and • You maintain a permanent residence outside Oregon during the entire year, and • You spend less than 31 days of the year in Oregon." If she is a nonresident, those items are not taxable as Oregon source income unless they were attributable to: (a) The ownership or disposition of any interest in real or tangible personal property in Oregon; (b) A business, trade, profession or occupation carried on in Oregon. Also as a nonresident the inherited retirement income is not taxed by Oregon. See ORS 136.127 for details.


    You cannot take any excess carryover for the deceased in the year of death, if that is what you are asking.
  • Create New...