DANRVAN

But there was not any reimbursement or expense. The arrangement and facts, right or wrong, appears that mom pays for fuel and insurance. But those are the facts and I would report it that way. So what if you report $xx,xxx in fuel expenses paid by mom, how will you substantiate for IRS auditor regardless of the gross up of revenue? It does not change the bottom line. I agree with others that there is room for future improvement, but I would stick with the facts for reporting.

Is anyone aware of a form to claim a refund for deceased Idaho resident? I have not found anything on ATX or Idaho Tax Com.

and determine whether it was marital property or separate property of either spouse.

For previous years probably nothing. Just go forward with correct ownership and reporting.

In a transfer due to divorce the adjusted basis is also transferred. Covered under section 1041.

Top of the class .

That was the rule 20+ years ago. It was repealed and struck from section 453. In order for shareholder to receive installment treatment, the corp must adopt a plan of complete liquidation. The sale of the assets and distribution of the installment agreement to the shareholder (in exchange for his/her stock) must occur within 12 months from the date the plan of liquidation is adopted. See sec 453 for details.

At this point I think you will need cooperation from XH since the return has been filed and by default the estimate goes to him. Anything in the divorce agreement in regards to tax estimate?

How in the world did they come up with 16 years??!!

The default is 4 years for a "positive" adjustment. There is an election to report it all in one year if not over $50,000.

The deciding factor might be whether they paid shareholder wages. The tax consequences of distributing assets upon liquidation will be different for corp. vs partnership.

Penalty does not apply to distributions taken on or after the date taxpayer turns 59 1/2. See section 72(t)(1)

On second thought, most likely not a trade or business so no 1099 issued.

It will either be an expense to sell or addition to basis, but the net will be the same since the property was held for investment.

Report the gross as income and the amount withheld as expense. For the amount withheld, issue 1099 NEC to contractor for his work.

Everything is zero, the entity no longer exist for tax purposes.

For tax purposes, the LLC designation is irrelevant. The business is changing from a partnership to a sole proprietor and will need a new EIN. Since the partnership has been dissolved for tax purposes, the assets (and liabilities) are considered transferred to the partners in a liquidating distribution. I wonder if lawyer understands that partnership ceased to exist the instant H transfers to W. I think it would be simpler to show the transfer of assets form H to W after distribution; rather than transfer of partnership interest immediately before dissolution. However, the net basis to W would be the same either way.

correct And most likely is 39 year property unless it can be proven otherwise per reg 1.856-10 (d): (2) Inherently permanent structure - (i) In general. The term inherently permanent structure means any permanently affixed building or other permanently affixed structure. Affixation may be to land or to another inherently permanent structure and may be by weight alone. If the affixation is reasonably expected to last indefinitely based on all the facts and circumstances, the affixation is considered permanent.

I was actually able to negotiate that one in my favor. Now if I could just get the seat to put itself down......

After 20 years of marriage I have come to realize that I am still a HIT;.............. Husband In Training...........

Did you check the boxes mentioned in the above post? It should then flow to 8582.

So you have two rental properties on Schedule E, one that was sold (A) and the other with a disallowed loss (B). On 4747 input did you specify the sale related to property A? On the Schedule E input sheet for A did you check the box that it was a complete disposition of a passive activity? Those steps should net the loss on B against the gain of A.

That is correct. The unrecaptured section 1250 is a capital gain which can be offset by capital losses, but taxed at a maximum ordinary rate of 25%.

But that doesn't really mean anything.

Personally, I would want some general verification (documented) before I put a $200,000 carryforward on a tax return; it could come back to bite you if disallowed. Catherine mentioned the possibility of a 33% drop in the market value, but it is also likely the previous preparer did not know the difference between an allowable loss and a partial gift. It should not be very difficult to document a significant drop in market value given the date of inheritance vs date of sale.