DANRVAN

I think that is actually referring to the non -taxable portion of Social Security income.

Your state probably does not care either. I had a similar situation with an Oregon client that went from partnership to sole proprietor and kept the same business name. They track the business by identification number not the name.

per 151(b) "if a joint return is not made by the taxpayer and his spouse, and if the spouse, for the calendar year in which the taxable year of the taxpayer begins, has no gross income and is not the dependent of another taxpayer" sec 61 (a)....."gross income means all income from whatever source derived" I believe SS is gross income as defined by section 61(a). So it looks to me like a no go.

What is your source for claiming this deduction?

Most likely the trust will need to file a separate tax return if the income is $600 or more. That will depend on the type of trust and distributions from the trust to the individual. Depending on facts and circumstances, the trust might claim an income distribution deduction and prepare a K-1 for the individual.

I think that depends on how he registers with the state, IRS does not care.

Unfortunately since the business has become a new entity, it cannot use the ein of the former partnership.

I agree with Pacun. That does not sound right or possible. So your are saying ATX is showing a standard deduction of 15,750 on line 12? If so, I believe you should uncheck the box to make it 14,350 as that is the amount that should be allowed.

Does anybody here use a voice over text software that you would recommend? My mouth is way faster than my fingers when it comes to typing. I am looking for something that is downloaded; not web based. Thank you for any ideas you might have.

If federal form 706 has not or will not be filed, you should not have any limitation to claiming them on form 1041 for the estate. Are you filing a "1041" at the state level? Oregon basically follows the federal code for estates; so you cannot claim the same deductions on both OR-706 and OR-41. Off the top of my head, I can not thing of any deduction that would be allowed on both federal forms 706 and 1041; no double dipping!

From what I understand, that rule applies if the property was not previously used in a trade or business. Per reg 1.167(g)-1 In the case of property which has not been used in the trade or business or held for the production of income and which is thereafter converted to such use, the fair market value on the date of such conversion, if less than the adjusted basis of the property at that time, is the basis for computing depreciation.

I don’t think there is any authoritative answer to your question, but I believe you should pick up where you left off in the past; including cost and accumulated depreciation. That way you will have a record of accumulated depreciation if the property is sold in the future. By using the remaining depreciation life, your client will receive a larger deduction per year than if you start over with 27.5 years. As for as the improvements go, I would list them separately and begin depreciation on the date the house was put back in service as a rental.

Cherry for me please, alamode!!!

See section 121(d)(5) for details.

To be correct you should override to show 1/2 year for 1065 and 1/2 year on schedule E. Yes. IRS is not tracking it! Partners basis is the basis of assets contributed. As of date of contribution to partnership.

You probably won't find a black and white answer in the code, but there appears to be a justification for claiming structural components. If you were to build a separate structure with the sole purpose of accommodating the panels I think you would have a strong case. But if the structure served another significant purpose; then I believe it becomes a question of how much (if any) of the cost could be allocated to the installation of the panels. 25D (d)(2) "(2)Qualified solar electric property expenditure. The term “qualified solar electric property expenditure” means an expenditure for property which uses solar energy to generate electricity for use in a dwelling unit located in the United States and used as a residence by the taxpayer. 25D (e)(2)Solar panels. No expenditure relating to a solar panel or other property installed as a roof (or portion thereof) shall fail to be treated as property described in paragraph (1) or (2) of subsection (d) solely because it constitutes a structural component of the structure on which it is installed.

I would take a look at it both ways. It looks like using the installment election your client would recognize about $2,000+ capital gain in 2022; and $18,000- in year 2029; vs recognizing gain of $20,000 in 2022. How would the extra $18,000 effect 2022 income taxes? Any capital losses or $0 percent capital gain bracket to consider?

Limited partners are given limited voting rights. They are limited to voting on certain issues, but not on the day to day operations of the company. That should be spelled out in the partnership agreement.

For sure, hauling tools and materials.

Sounds like your client might be a ahead to use actual mileage in that case. Are the vans left overnight at place of business, then driven to and from job sites? Maybe taken home at night for security purposes? Are there any maintenance records etc. showing odometer readings from beginning of year to end of year? Just some thoughts. Helpful or not, good luck!

Too late to do anything at this point unless the Corp wishes to recognize gain on the distribution of the installment note to the shareholder. The distribution of the installment note to the shareholder is a taxable event to the S-Corp; unless they meet the exception under sect 453(h)(1). In order to meet the 453(h)(1) exception, the corp. must adopt a plan of liquidation before the installment sale is closed. Then there is a 12 month time period to compete the liquidation.

Sounds to me like they are now conducting all their business activity in state #2 and should re-register there.

From what I am following in this post, a disallowed passive loss carryforward loss was dropped in 2016. The property connected to the loss might be sold and free up suspended losses. Even though 2016 is closed for refunds or assessments; It my understanding that the closed years can be amended to bring a carryover forward to an open year.

Looks like she should meet the three HHH test: -unmarried on 12/31 -paid over 1/2 cost of keeping up a home -and had a qualifying person live with her for more than1/2 of the year.

As long as total expenses exceeded the reimbursement, the only amount taxable should be the 2021 tax benefit which was reimbursed in 2022. Also you mentioned the taxpayer was deceased, so sounds like IRD possibly reported by his estate on form 1041.