DANRVAN

The court appointed PR does not have to file 1310 with an original return, but instead attaches a copy of the appointment to the return. ATX has a link to attach it to e-file.

Does TP currently have any ownership in property? Not unless there is a legal and binding contact / note. Why do parent's have zero basis? Sounds like this transaction would be a partial sale / partial gift since the fmv is greater than the consideration given.

So I checked ATX and there it is. Great!

How do you plan to circumvent 162(a) in regards to disallowing deductions incurred before the activity became functional?

I don't believe 195 would apply unless the rental activity rose to the level of a trade or business. That was not indicated here, OP mentioned passive loss offset by profit of other rentals.

But for a semi weekly depositor, the Wednesday and Friday liability would both be on the following Wednesday, so I don't see an issue here.

That sounds right in this situation.

Is it actually going through an estate or reported on the final joint return by surviving spouse?

Agree, but was referring to the post here in regards to legal advice on operating agreements, forming LLC....etc.

And NOL carry forward from operating expenses from the day business opened.

That would depend on facts and circumstances, there are a list of factors looked at by case law. For instance the joint venture could have risen to the level of a trade or business providing services to to the tenants. In some cases joint ventures are preferred by real estate investors. For instance they can 1031 out of their fractional shares where as their interest in the partnership are not eligible for 1031.

Those are good points, but be careful to distinguish between management advice and legal advice.

No they do not. Co ownership and rental of real estate property does not meet the definition of a partnership per case law, unless an attorney talks them into filling forming an LLC. Your role is to inform them of the cost and tax filing requirements, the decision is theirs.

There is no reason to file 3115 in that situation. Just amend 2019 and go forward.

Sounds like that was his principal place of business; and he did not conduct substantial admin or management duties from the 2nd location. If that is the case he can also deduct travel to second place of business.

And you are claiming on 3115 code 107.

Never too late to file but penalties and interest will apply.

1250 is sort of a hybrid, taxed at a maximum capital gain rate of 25%, thanks to the strong lobby arm of the real estate industry. The recapture should show up near the bottom of the tax worksheet for Schedule D.

I have seen a few.

The penalty is calculated on the date the liability is reported on 941 vs the date of the deposit. Since they are semi weekly, a Wednesday payroll liability is due the same day as a Friday payroll, which is the following Wednesday, so that won't make any difference. You need a copy of schedule B to figure out what is going on.

Report sales price = basis ?

I misunderstood and picked up in the thread that you had decided to call it an investment and a capital loss. I don't think there is a method or any reason to report a nondeductible loss on the K-1; or for that matter on the 1041

Not at all, that is a common misunderstanding. As Tax Guy Bill pointed out, 3115 is used to change from an impermissible accounting method to a permissible accounting method. Failure to claim any depreciation on an asset is an impermissible method, so form 3115 is filed to claim allowed or allowable depreciation under a permissible accounting method. Corrections due to calculations, posting or math errors are not accounting method changes and cannot be fixed on form 3115. So for example if an incorrect placed in service date was used, that mistake could not be fixed on 3115. I believe that rule has changed, but only applied to corrections made to change from an impermissible method to a permissible method as Bill pointed out. Previously, I think the impermissible method had to be used for two consecutive years in order to make the correction on 3115, otherwise the correction went on 1040X.

except for year of termination

Agree, GP is more equitable.