BHoffman

A nice shower and then to bed WITH FRESH SHEETS!!! Heaven!

I happen to have a broken bicycle and chili is always a good idea

I did some reading at NC Dept of Revenue and searched around for info. My understanding is that, in any case, the fiduciary (and not the beneficiary) has the responsibility for reporting any applicable income to NC. I'm reading the instructions for form D407A. It looks like the beneficiary is only required to report whatever distributions are on the K-1, as usual. Also, see "Kimberly Rice Kaestner 1992 Family Trust vs. North Carolina Department of Revenue". The law that says out of state trusts have to pay tax to NC because a beneficiary lives in NC was decided to be unconstitutional by the Wake County NC Superior Court, but only for that one case. NC DOR is expected to appeal.

You've been such a help to me. If there's anything I can do for you please ask. I'll give you my phone and email.

Here are some things I can help with: I do A LOT of construction tax and accounting. Any bookkeeping questions. Quickbooks. S-Corps. Simple explanation for how to read a balance sheet and the importance of retained earnings. Easy to understand explanations for filling out Sch L and M-1 adjustments. How to make sure your client's business tax return will reconcile to the client's financial statements. I am very grateful for your support and hope I can reciprocate.

I donated last week. What $ range is the usual?

The IRS used to grant the first time abatement over the phone. It's been two years since I've had one.

Thank you so very much! I prepared the donor's tax return as though she sold the property and it was never gifted. After improvements and selling expenses, the transaction results in a loss of ($32,765). The donee's loss using FMV plus improvements and selling expenses is ($19,227).

Oh, forgot something important: The FMV was used as it was lower than the adjusted basis. I was under the impression that if FMV is used to determine the basis of the gifted property, the donee would not have depreciation recapture upon the sale. Is that correct? The donee never rented the property and held it as investment only.

Catherine - can you help me out regarding the depreciation recapture? Is there really any of that to the donor or am I misunderstanding? I know there isn't any depreciation recapture for the donee because he never rented it out.

I wish you were here

I think I'm a nimrod. Why do anything? I can just leave it there. I'm a mess today!

In Drake, there is no such luck

No - The donee never lived in the house. Yes - The donor's (adjusted) basis of $136K was after depreciation. How do I get the property off the donor's tax return? Do I fill out a 4797 with the sale price equal to the adjusted basis so there is no gain or loss? Also, I just report the sale on the donee's form 8949 and there are no problems with the 1099S form, right? Thanks so much. This is basic stuff but I'm still so stressed out about Toody and the in laws' dog that I don't trust my own judgment. Next week my BIL and SIL are visiting for a few days, but they are a lot less high maintenance than the parents and their dog! Hubby owes me big time for having his relatives visit during the tax season, but he was a hero about Toody.

I have a gifted rental property as of 07/01/15. Donor's basis was $136k. The donor will file form 709, but won't owe any tax due to the applicable credit amount. The donor died in February, 2016. The donor and donee were a long-time unmarried couple. The donee did not rent the property to anyone. He paid $8k for improvements. The donee sold the property on 12/11/15 for $130k I'm thinking the donee's basis is $138k: The lower FMV of $130k on the date he received the gift plus the $8k he paid for improvements. So, he has a short term capital loss of $8k. Is that right? Thanks!

Doh! Pretty sure I have treated a transaction like this as a technical termination before but it was a long time ago. You learn something unpleasant every day

Can Dad "sell" his interest in the partnership to his DIL for $1? Or is that too clever?

That dog has not attacked my because I know all about those alpha females and they've never had the chance to be together. We've been really careful. 2 years ago, they visited with that dog and I suggest they board her at a doggy spa just up the street. They huffed out and we didn't speak until this visit. So, it's grin and bear it. At least it was only a few days while they are passing through AZ on an RV trip.

My husband's parents are visiting with their aggressive 90 lb dog who will eat my dog on sight, so they must be kept separate at all times and I've been a nervous wreck because that dog doesn't seem to be very fond of me either, so I've been trapped in my office with my dog and a .22 pistol just in case and neither one of us have been very happy. They are leaving today. YAHOO!!!!

I hope not because I had to the same thing . The late file penalty is pretty easy to get abated.

Yes. And we appreciate that I think things are so complicated that none of us can know everything and so these forums are great!

BEGIN RANT....and then the stupid IRS will issue a late notice to fix the problem since the geniuses running our tiny little lives just...duh....forgot about partners while they were so busy with the SCorp shareholders. I'm surprised there isn't more online squawking about this, and I bet most preparers are merrily using the SEHI deduction for their partners like always....END RANT.

I think Jack is right. I'm really cheesed off about the Publications. 2015 Pub. 535 clearly states that partners who receive SE income can use the SEHI deduction. But, we can't use the Publications as having any kind of authority. IRS and DOJ addressed SCorp shareholders in Notice 2015-17, but remain officially silent on partners. Grrr...

Hi David - you said the client never signed the 2553. I think the IRS just round filed the form. In any event, until the IRS gets a signed 2553, I think your client is going to have trouble and confusion with the IRS.