Julie

Here's the schedule. http://www.irs.gov/taxpros/providers/artic...=174255,00.html I had to spend an hour or so searching for this the other day....seems there's no pub that pulls it all together any more. The best I could do was this page: http://www.irs.gov/efile/article/0,,id=118663,00.html

He's a new client. We'll see if he comes back after this. The amount spent on the exchange is pretty close to the taxes due without it. Thanks again!

Okay....I think that explains why this didn't seem to be working. Yes, it appears to me from the closing statements that only $75 was passed into the replacement property. Thanks, jainen.

Taxpayer has a 1031 exchange with boot paid in installments. I think I have the exchange right (that's the part I have little experience in), but I'm having trouble getting the 6252 right. The IRS instructions make the sale appear to be a loss, when it should have a recognized gain. So that means I'm doing something wrong. Premises: TP bought commercial building in '01, adjusted basis approx 80K Exchanged in '07, FMV275K, for new apartment building FMV200K. 3rd party exchange done through intermediary. $137K was paid in '07, $75K was applied to apt building and the remainder is to be paid later. TP has $125K mortgage on the apartment building. Or is the entire gain disqualified from 1031 treatment because of the mortgage? What should the 6252 look like? Thanks, Julie

Glad to hear the surgeons did a good job and he's getting better....I've been off the board for a few weeks, so didn't know he was ill. But my thoughts are with both of you that he recovers fully.

I don't think the purchase of a domain name (essentially an exclusive license to a given web address) or a web site (going business) would qualify as a software purchase. If I understand the question correctly, this might be closer to buying a trade name. (sec 197, see pub 535 p 27.)

Wish I could go with you! But not this year.....

I'm not especially conversant with that form, but in ATX you can always add a spreadsheet or an itemized list to the tax return. From inside the return, look in the "forms" menu. You'll have a choice between a text statement, an itemized list, or a spreadsheet. Use whatever seems most appropriate to you.

Yeah, I read the section after jainen's first reply, and it's pretty clear. They're trying to determine whether the permit will be transferable and could be sold if he decides to retire, before deciding whether to make the investment.

Question: Did your client know he was participating in an illegal pyramid scheme?

I think it's also known by the name "butterfish," as well as a few others. I hadn't seen the name "sablefish," but it appears to be the same thing. Fishermen often use different names for the various species than you'd see in the market, or in books. I don't know about climate change being a factor here, although maybe it would bring them down your way. I think they've always caught a few off Mendocino and Humboldt counties, at least occasionally.

This is California. If they were going to Alaska, they could still fish salmon. And yes, they are limited, and the licenses, which can cost up to $100K, are linked to specific quotas. He's looking at one with a high enough quota to keep him in business for a few more years.

No, this is a commercial fishing license, for (I think) blackcod. I'm sure you already know that commercial salmon fishing has been banned entirely in California for the second year. The fishermen are getting some payments from the government for the complete loss of their livelihood, and he's looking to invest the money in a license for another species.

Thanks! Client is 80, so will not want to hear that. The likelihood that he will be fishing commercially in 15 years is not all that high. But I printed out the section to highlight and show him.

Does anyone have any experience with lifetime licenses? I'm wondering how long they should be amortized. Client is considering buying a $30K lifetime commercial fishing license.

There's another reason for not growing blueberries in the Valley. We have alkaline soil, and they like it acid. The coast has mostly acidic soil, hence the native rhododendrons and *yummy* huckleberries (acid lovers as well).

I had one like that this year too. Settled it about three weeks ago. I'm glad I wasn't the only one.

I'm so glad you came, Joan. Where he was...he went to visit our doggie Sassy with the sitter. Why? Perhaps because he has no sense of time. There's a reason I do all the "hard" stuff, and leave him the "fun" part. (I always knew he was a genius...the challenge is keeping him on track.) Anyway, this turned out to be a really nice event, and as we get it polished, I'm sure we'll learn how to turn out a crowd. I'm still working on that video slideshow...whenever I'm not on the phone with clients or the IRS.

It went very nicely. Not perfect. About 25 people showed up. No sales, but some nibbles who may yet come back to buy. And some people we were counting on didn't make it, and we still need to drag them in here. And Walt kept disappearing...five minute errands somehow turned into hours. But all in all, it was a good first day. This is gonna work out. I am very, very tired.

We're having our "grand" opening tomorrow, for my new(ly moved) tax office and our new art gallery. Anyone in or near Sacramento is welcome to come by and say hi. I know I'll be here from about noon till 11pm, although after six we're making it more of an art gallery reception (meaning there will be food). Anyway, directions are at www.your-taxes.com and www.gallery14.net

I've discovered that ATX does not like my new business name ("Your Taxes & More") and the "&" has to be rendered as "and" for e-filing.

While not everyone finds this kind of abuse funny, we do share in common our frustrations with the IRS, and occasional helplessness in the face of its intractability. This kind of humor is one way to let off steam when we feel safe in our own company. You'd hear the same kinds of things at any employee gathering where the boss isn't present. I think its purpose has more to do with shared identity than with comedy. At any rate, I'm with KC: it's one of the things that characterizes a community.

Thanks. I had IE View, but not IE Tab.

This is my experience, too. IRS will always pay themselves first.

I haven't had that problem with this site. IRS doesn't like Firefox, but ATXcommunity works fine on mine. Wonder why the difference?