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Corduroy Frog

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Everything posted by Corduroy Frog

  1. I would stick to Sch D and the 8949 series which feeds it. Hard to deal with this, but even paying for a $50 fillup with gasoline to a service station which accepts Bitcoin constitutes a separate transaction. Hope there are reporting alternatives to reporting every single transaction. And how is your crypto "portfolio" valued? We get back to the ancient inventory lessons of FIFO, LIFO, Moving Average. If a method chosen is other than Moving Average, a nightmare results because of multiple tiers of valuation. Especially with LIFO. Dealing with this is a nightmare to begin wi
  2. Understand completely. We want to avoid the appearance of "back door boot". He has other rental property, and if he does this, it will probably be used to improve other rental property or maybe buy more. If he waits a couple years, he will probably be off the radar, regardless of what the proceeds are used for. Thanks again - you are absolutely magnificent in researching and answering these questions.
  3. No. There is zero money except for the fee of an intermediary. Sorry to mislead.
  4. Thank you Judy - and equity is one thing that hasn't been considered. I am guilty of ignoring this factor as well. I apologize for presenting fictitious numbers because I wanted to focus on the invasion of Property 2 of $500,000. The real numbers are as follows: Value of Property #1 - $925,000 with $90,000 still owed. Equity $835,000. The $90,000 mortgage is NOT being transferred to the new buyer. Value of Property #2 - $975,000 with $140,000 owed. Equity #835,000. Taxpayer has to borrow the $140,000 to keep from investing more cash. I am on board with Judy's caution for
  5. Thanks all. I'll have to come back shortly with real numbers to properly paint the picture.
  6. After a tax-free exchange, taxpayer invades equity to withdraw cash. Sorta defeats the "boot" definition. Maybe an example can paint the picture, with simplified fictitious numbers. Taxpayer owns Property 1 with a basis of $250,000, but FMV of $1,000,000 and existing mortgage of $85,000 which does not transfer to the buyer. He buys Property 2 for $1,000,000 and borrows $150,000 in the process. The sale/purchase goes through a qualified intermediary within the prescribed time limits, so BINGO! Tax free exchange! Taxpayer sits on Property 2 for awhile, but six months later, he tak
  7. Lynn, thank you. I'll look into Square and other alternatives.
  8. I have not gotten into accepting credit cards, and it has turned off a few people who want to pay everything by using their phone. I've got to wonder how they were even alive before smart phones were invented. They don't see the effect on recipients. If presented with a bill for $100, they think all they have to do is pay $100 and everyone is deliriously happy. I accept checks (and of course cash). I prefer checks because it has the routing # and account # I can use to direct their refund deposit. If they try to read off these numbers to me, they can leave out significant digits, and
  9. Many of these are troubling, and I believe will backfire. In particular, I am old enough to remember two previous attempts to eliminate preferential treatment for capital gains. In both situations, these attempts to "soak the rich" resulted in a huge slow-down in real estate transactions. When this happens, not only do the rich suffer, but also construction workers, materials suppliers, and everything associated. Within a year, the legislature restored preferential treatment for capital gains. Another of these is the possible elimination of "stepped-up" basis for sales of inherited pr
  10. Thanks to both of you, PencilSharp and Judy, for your suggestions. Neither of them worked, but somehow I got rid of it and don't know how. The only option I might have chosen was one claiming "Remove Bookmark". Thanks for your responses. Always good help on this board.
  11. This is for those of you who know computerese better than I do. (This means practically ALL of you). When I open any website on Foxfire and then leave it, another screen is left open. It is a combination of Orbitz/Expedia/Priceline/Kayak. Asking me if I'm still wanting to make a trip to Norton, VA on May 28th. I did in fact, make a trip to Norton, VA (bluegrassing) on May 28th - 30th, but I made reservations through Choice Motels and stayed at one of them in Norton. The screen has been pestering me ever since. I have to X out in the upper left to get rid of it, but every time I
  12. West Virginia has been mentioned, and the timbre of this post is somewhat out-of-ordinary. Gorgeous mountains, but as far as a moving destination, probably weak on communications and infrastructure. West Virginia reflects the stereotype of Appalachian poverty. It is real, indeed many towns have only a few brick buildings aside from maybe a post office or govt social security office. Black lung disease from the coal mines is a reality. But there is always an untold story. I would like to focus on one area, McDowell County, although much of WV is very much like McDowell. A civic
  13. Tom, come visit Tennessee and stop in to see me in Manchester. I can show you around, even take you to Rita's town. Middle Tennessee is exploding with people from all over the country. Extreme Western part of Virginia I visit quite often and is gorgeous, much like extreme Eastern Kentucky. My cousin lives in Vacaville, CA and is dying to move. In the last month, 3 neighbors on his block have moved out. One to AZ, another to CO, another to ID.
  14. Such a spreadsheet could be voluminous if client routinely pays for stuff with BitCoin. (And BitCoin is not the only one out there). Yes, if we get sucked into it we will need to charge for the extra time, and even if the client keeps up with it, we have due diligence responsibility. What about the guy who shows up having paid for a buncha stuff all year long but brings NOTHING??
  15. Hi Lion - we are filing MFJ, but the IRS claims the allocation will be prorated downward after a quasi-MFS separation.
  16. The IRS offers to do this, but most clients want to have some idear what is going to happen, during their appointment before insisting on it. The appropriate items of revenue and expense are allocated. Rates in use, before proration, are married filing separately. Which, if any, of the following are true? In absence of clear identification, items of expense are allocated in proportion to respective incomes. Even though using married filing separately, Large items such as EIC can be allocated even though MFS does not support EIC. Thanks in advance.
  17. Sorry, folks. don't know how to delete or rewrite. I don't even know how to spell I.T.
  18. I dunno about CBS this time, folks. An intermediary is not required, if traded property is actually identified and actually traded. Most LKE using an intermediary is a paper shuffle, and the intermediary is paid for his services. There may be a disallowance based on Inventory and new Rental Property not being like-kind under the new definition (2018).
  19. It's amazing how many customers think the IRS is doing preparers a big favor by giving them an extra month to prepare returns. No way. I wanted this season to be over April 15th, and I suspect most of you felt the same way. To answer the original question, my fees tend to go up during the season after I am drug through the garden on ongoing changes and PITA stuff I hadn't foreseen going into the year. So late filers are subject to the maximum fee - not by design but by what happens.
  20. I dunno a lot about it, other than what I've heard. An increasing number of business are accepting it as legal tender, and if this happens, I expect the difference between the dollar value paid and the dollar value of coins when purchased would constitute gain or loss. Someone please correct me if I'm wrong. If Paypal charges a fee for purchasing BitCoin (and I don't know why they wouldn't), it would seem this would go into the basis of what was bought. I'm also told there was a fixed volume of this currency when issued, never to change. I suppose that was to make it more attracti
  21. Why does the IRS need to know if you HAVE BitCoin? If it is treated as property, there should be no tax until BitCoin is sold. We can buy 100 shares of Ford Motor Company, General Mills, or 50 acres of land, and we don't have to report it to the IRS until we SELL it. What is the difference with BitCoin? I didn't have any customers tell me they had any when I asked them.
  22. Mr. Lee, you do a great job of bringing current IRS and other issues to the forefront as soon as they become available. Thanks.
  23. No responses after several views and several days. I believe this is probably because I asked for responses if my assumption was incorrect. I believe my assumptions is therefore correct, or I would have heard from someone. I further believe the credit must be substantial before anyone would jump through the hoops on 7200 just to get an advance 60-90 days ahead of fruition.
  24. I hope I have this correct - please advise if not so. From what I can see, Form 7200 is an advance payment for a credit which is not realized until Form 941 is filed and reconciled. If a taxpayer wants to pay his accountant (or people like us) the time necessary to calculate up to 3 months in advance the amount of the credit and get money back from the IRS for various employer credits, it can be done. But all the payments resulting from 7200 must be paid back when calculating the 941 at the end of the quarter. Correct?
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