TAXMAN

I think I am having a brain seisure. TP sch c borrows money to start busines and buy equipment in 2012. Pays interest in 2012 and 2013. Opens for business Jan 2013. I know what to do with interest in 2013 but what do I do with the interest in 2012 about 10k worth. BTW tp has not filed 2012. All the equipment bought in 2012 is being held and dep in 2013. No sec 179 need for any of this stuff. Just not sure what to do with interest in 2012.

Hopefully will find out more this weekend.

The way I understand what happened was TP got ill, did not want NH to get property put it in a nonrevocable trust b4 death. Died 2 days after. Trustee was residual owner. Trustee rented it with all income and deductions remaining in trust for 2 years. Then closed trust and took possession. 2 months later she gave house to mother. Just not sure proper way to get all this stuff out. Can trustee make use of suppended losses and determining basis for mom to rent and gift side. appreciate all angles to use.

TP's personal house put in Irrevocable Trust. TP decd 2 years ago. Trustee rented house during 2 years showing loss on trust return(not ded by trust or trustee). Trustee was to get house. Trustee took possession of house(all deeds redone). Trust died. Trustee gave house to mother. Mother gets new deeds in her name and promptly rents house out. Question: what happens to the suppended loss by the trust? any effect on trustee(tax wise) in receiving house? Basis to mother? I think a gift tax return is in order equal to the FMV of the house at time of gift? Can some advise? neither trustee or mother used house as a personal residence.

Must a church give a 1099 to a company that blacktopped their driveway? The nature of the company is not clear yet. Question was brought up by treasurer?

Thats the way I saw it. TP read somewhere? he could add land to house and sale as long as it was within 2 years of each other. Don't you just love it when they know more than you.

What I have is a purchase in 1990 1 contract stating house with 3 acres X$ and 50 acres @ X$ for a total of X$. 1 loan for whole thing.TP farmed the 50 acres since 1990 always had a loss. Now in 2013 tp sells the 50 acres to joe and sells in 2014 the house and 3 acres to mary. TP could not get 1 contract for whole. I believe that I have 2 separate sales. Farm land with no exclusion and house with exclusion. I do not think I can make this into 1 sale with full exclusion against everything. Correct me if my thinking is bad. Many thanks.

I am green at 13.3 do I suppose it is 13.4 that I should go to even if the update is green. How would I know this? my cohort just told me we are at 13.4. other computer was not updated. My BAD.

The 1099r has a 2013 date on it with the FWH and gross amount being reported in Decd Spouse SS#. Real question is how toget the FWH to the TP. Don't see how I can put this on a 1041 as no estate exist. Thanks

What i have is a spouse decd in late 2012. TP(husband) received a 1099r with spouse name,ss#, and FWH on the 1099r. TP filing single in 2013. Company paid this to TP but will not correct 1099r for the SS#. Question is how do we get the refund wh on the 1099r back. Decd spouse has no estate. Even then the wh is in spouse # so I really can't file a 1041 and ask for it back. Suggestions?

I thought so. Will inform staff right away. Thank you.

thank you. She sold all the animals within 6 months. By stepping up creates virtually no tax. I learned something today. Not a total loss. thank you.

Jack, I see they put another update down for Thursday. So do we need to do the one for the 18 and then the one on thursday. Also is it better as far as a workstation goes to update from within as to from the site to desktop and then update? I have some efiles that could wait till thursday. Thank you.

In essence, tp ran and operated farm. He is deceased along with the c/o of any NOL. Correct? If this being the case can I step up the basis in the breeding stock and equipment? I really am trying to help out this older lady. Thank you.

Noticed that ATX puts a sid # on 8879 almost instantly upon creation of the 8879 or if the 8879 rolls up from b4. This # contains a date. If tp doesn't sign for 10 days later makes the date wrong on the SID #. After client signs 8879 i go put the date in. Does not change the SID#. Seems that some states won't accept anything older than 2 days. Anybody know IRS position in this. It would like I am holding returns but in realty not. What are the thoughts here?

Which is better. Download fron site and run update or update from within the program? Your thoughts? Second issue: is it better to COPY the backup folder to another drive or run MS backup of folder or some other program. I do not want to CHANGE where ATX puts this folder. Too many problems associated with moving this folder. Thoughts please. I do export returns everynight to 2 locations.

What happens to a NOL on a prior jt return with a carryover not used and tp died in prior year 2012? Does spouse get to carryover the nol. She continued the farm operation in 2013. Can she step up her basis in farm animals used in breeding cycle? Seen this once before but now not for sure. any thoughts?

Jack Do you have a specific site in mind for the Amway group as I have several in my area? Thanks

I intend to add the ss offset to the wages box. The pension fund is all paid by church with no salary reduction. Church pension board suggests certain % of paid wages and housing to calculate their contribution. The auto allowance was based upon 2012 mileage driven for church. Books are reinbursed by receipts. The ed allowance was a suggested amount based on prior amount. Do you still think my #'s will be ok?

Could it be repayment of income. I had one and as it turned out almost a break even when the reurn was finally completed. Just thinking outload. However my amount was in the 7k range that tp had to pay back to insurance co. But then with the lump sum on ss created a very slow computation by hand.

This leaves me to believe no kiddie tax and no se tax. Funny to have income that is neither earned or unearned in same situation. Must be the law?

Now what to do with that cobra?

Thanks KC I was headed there. Thought somebody might have a rate that IRS wouldn't look at as long as it was stated in the contract and sales price reduced accordingly.

Looks good to me. Thanks.

I have seen some of these on relative to relative land sales. Anyone know what may be the cheapest interest rate they could charge to avoid the imputed or unstated interest. Most what I have seen has been 5 year contracts.