Corduroy Frog

Thank you. I did query the Tax Book, but could not find where Guaranteed Payments were addressed with respect to QBI.

For an LLC filing as a partnership Guaranteed payments to partner - $40,000 It is treated as an expense to the partnership, but is income to the partner. Does the $40,000 reduce the QBI income of the partnership? Doesn't seem like it should if W-2 wages paid by the partnership doesn't reduce the QBI.

Has probably been asked before, but the board is very active these days. What about the well-publicized change for more "Additional" Child Tax Credit and 100% Bonus Depreciation? Has this happened yet? I'm holding a couple tax returns waiting, and for Drake to update when it does... Thanks,

From Judy's post: with the husband paying the mortgage from an account solely in his name, he would get the entire interest deduction, and she would have to itemize even though the standard is higher. I have been aware that if he itemizes, his wife must itemize even if not having enough to meet the std deduction. The question centered around his ability to claim all the interest even though the bank has made both of them responsible for the loan. Reading Judy's post, it appears he can do this, so long as he is paying from an account in his own name. Thanks to all for responding.

A married couple wants to see if they can save any taxes by filing separate. Their incomes (all W-2s) are almost equal. Husband $51,500 Wife $52,000. Should help quite a bit. Husband has paid ALL home mortgage interest himself, out of his own checking account. Wife has paid some taxes and charity, but not enough to meet the standard deduction for MFS. Sounds good? Well,,,,maybe. The husband has paid all the interest himself, but the loan is the responsibility of BOTH parties. What say ye?

All of you are correct. Problem solved. Thank you.

Remember all those PoP-Up ads that were a nuisance, so you had to get an ad-blocker? They seem to work. Except for Google. I can't even call home or go to any website that Google does not block my screen trying to sell me their latest service. I've always been a subscriber to the idea that "Big money ruins everything it touches." Everything from Professional Sports to Radio. I apply this mindset to Google also. Obviously they are not my favorite. Why should I have to put up with Google every time I crank the car??

The standard mileage rate includes a portion attributable to depreciation. Does the link include that information? Never mind, I did find it in the depths of the verbiage. 28 cents in 2023 and 30 cents in 2024.

I am confused. Looking back at the seminar materials, apparently what I had reference to was a 481(a) Adjustment, where the recapture of "allowable" depreciation can be minimized by the use of Form 3115 to change methods retroactively. The 481(a) adjustment could also be used to increase recapture and add to taxable income, if circumstances benefit the taxpayer having more income.

This may sound bizarre, but I think at a recent seminar, a new form was introduced, whereby all of the prior depreciable amounts are added to income, but the accumulated amounts plus current year is allowed as a deduction. There were pre-qualifiers. Sorry, I'm having trouble remembering the special form.

So true. I remember meeting Phil in 1982 on his way out the door to go deer hunting in N Carolina. He was working on software at the time, and for most of the rest of us, electronic filing was a far-fetched dream.

Dennis, customers are people you have to meet where they are, not where you would prefer them to be. I have to stick to this axiom with most of my tax clientele. Some of them, if they have ascended to elite status, really wouldn't need me. Those who have difficulty of grasp are those who need me the most.

Yes, after years and years of promptly answering the phone, Drake now has a telephone menu. Under the guise of "properly directing your call", we now hear a few minutes of propaganda, punch this, punch that, etc. And I'm sure we will be directed to "we are trying to save money so we can pass the savings on to our customers." And I'm not against a company making profit - it's just that Phil never needed this to make a profit. Years ago I had TaxSlayer, who answered the phone even more promptly than Drake. I couldn't stay with them because the state packages were sorely lacking (outside of Georgia and S Carolina). Any comments?

Thank you DANRVAN. I have indeed printed out 15 pages of 172(a) and will read it. The various cross-references to other codes and cites are why persons such as myself use this forum to receive quicker and clearer answers on a number of situation. Thanks again.

Thank you so much. In other words, the NOL can only be used to offset "operating" income. So in my example, if the taxable income is due to Capital Gains, there would be no offset. Some of the income will be depreciation recapture on farm equipment (4797) which is "ordinary" income, but perhaps not "operating" income. Thank you.

A Farmer has had consistent losses for several years, and has been borrowing big time money to cover the losses. He knows he will sell the property in 2023 at a whopping gain, and so do the lenders. He sells on installment sale to reduce taxes. Let me be sure I have this correct. Hypothetical Facts: 2023 taxable income $120,000. NOL from 2017 is $40,000 NOL from 2018-2022 is $90,000. NOL from 2017 is applied first, reducing taxable income to $80,000. Only 80% of $80,000 is available for the application of post 2017 losses, or $64,000. Taxable income is $16,000 after applying $64,000 of available NOL. NOL carryforward to 2024 is $26,000. Thank you in advance for taking time to respond.

I did the same thing this morning, took me nearly 2 hours to print, punch, and prepare a hard copy notebook. I will also be attending Auburn's seminar in Pelham, AL in December. I see people with notebook computers that don't have to print, but the batteries don't last and there are not enough power outlets. The Auburn school is the ages-old "Farm Seminar" developed by U of Illinois decades ago. The material is still well-written, plenty of demonstrative examples which speak to us in plain straightforward language, not some stilted ethereal cumbersome phraseology.

The last time a new requirement for executives to expose themselves came with Sarbanes/Oxley and many smaller, registered firms decided to bail out of the SEC and public trading.

Dennis, out of respect, I've removed my post from view. When I get time, I'll send you a private message. Thanks for your response.

Does Medlin have a Job Order subroutine? If not, can this be achieved by Master vs. Subsidiary Accounts?

How about asking the client? (assuming they really know). There is a bigger issue involved here...how well can we depend on what the client tells us? I believe we should rely on their information, with a few exceptions, such as things that are obviously "wrong with this picture." Examples: Self-employed taxpayer with $15,000 in self-employment income, living in a $3,000,000 home. Taxpayers who can't tell Lion's difference between joint tenancy or tenancy by the entirety without consulting their attorney. US Citizens over 70 years of age who don't have 1099-SSA information returns... And the 8867 where the preparer asks questions that the IRS insists is not auditing, even if we are supposed to keep documentation? (TurboTax self-prepared returns will not have an 8867) A bigger issue indeed, maybe outside the scope of this thread stepped-up basis.

...and if I don't, someone else should and will, especially with end-of-year upon us. Time to remember the sponsor, Eric, if someone will publish his mailing address. I plan to send him a paltry amount by comparison to benefit of asking the questions that I do, and receiving responses.

Thank you to Lee B and DANRVAN for clarification.

Millard and Maude - married elderly couple. Millard owns a commercial warehouse by himself, but Maude owns no part of it. Millard's original cost is $400,000 years ago, with $350,000 in accumulated depreciation. Millard passes away in 2022, leaving the warehouse to Maude. Maude has warehouse appraised, FMV is now $1,000,000. What is Maude's new depreciable basis? (for this purpose, ignore the effect of non-depreciable land): a. $1,000,000 the new FMV of the warehouse. b. $ 650,000 because Millard already took $350,000. c. $ 350,000 calculated at Millard's (400,000 + 1,000,000) divided by 2, less Millards $350,000 already taken. d. ????? Have researched The Tax Book, and find numerous references to stepped up value, but nothing regarding new depreciation. To all who might be interested, thank you in advance -

Thanks to all who have posted. The group has given me more options than I realized were available. Actually, I believe the year was 2011 when stockbrokers and custodians were forced to disclose basis on their 1099-B information returns. I would trust any basis for mutual funds held less than 12 years, but a majority have held much longer. But time is on our side - one day almost all funds will be held 2011 and later.