kathyc2

I disagree. 453(i) (1)In general In the case of any installment sale of property to which subsection (a) applies— (A)notwithstanding subsection (a), any recapture income shall be recognized in the year of the disposition, and (B)any gain in excess of the recapture income shall be taken into account under the installment method. (2)Recapture income For purposes of paragraph (1), the term “recapture income” means, with respect to any installment sale, the aggregate amount which would be treated as ordinary income under section 1245 or 1250 (or so much of section 751 as relates to section 1245 or 1250) for the taxable year of the disposition if all payments to be received were received in the taxable year of disposition. What you are describing normally happens with 1245 property. If 1245 property sells for less than original cost but more than basis, it is ordinary income and goes direct from 4797 to 1040, bypassing Sch D. Since generally 1250 property is depreciated with straight line it is a gain and not ordinary income. The confusion comes because it is taxed at the higher of marginal rate or 25%. However, it is still a capital gain and goes from 4797 to Sch D before showing on 1040. If the TP happens to have net capital loss from a mutual funds or such, they will decrease the 1250 gain. They would not decrease the 1245 gain I talked about earlier because that is ordinary, not capital, income.

Correct. A lot of us (myself included) use the term recapture loosely. See the instructions for 4797 Part III line 26. Line 12 on 6252 pulls from line 31 of 4797. If straight line was taken, line 31 will be zero. The gain can be taken over the like of the installment note.

More than likely it should be zero. Read the instructions for 4797 Part III line 26 to see if anything should be on those lines. If not, you are good.

If straight line depreciation and no bonus depreciation then line 12 is 0, line 13 is 120 and line 14 is 30.

If you want to report the entire 30K gain this year, don't use 6252, just report gain on 4797. If you do want to report as installment the 5K received this year first calculate how much of it is interest income. Then remaining is 80% tax free return of capital (120/150) and balance is 1250 gain. I don't use ATX, so I don't know how you enter it to get this result.

You can change from MFS to MFJ any time under normal amendment timeframe. Changing from MFJ to MFS has to be done before due date.

How is the saving account he parked the money in titled? If with rights to survivorship, I believe it passes to her regardless of not having a will. If the income between the 2 was significantly different, MFS will more than likely produce higher overall tax, especially if one or both receive SS.

Free advise often costs more than what you paid for it.

Personally, I'd be leery of scanning software that's from an unknown company. Who's to say they aren't capturing the info on the forms they are scanning?

I'm not understanding what part you are asking about? Pub 969 covers both HSA's and FSA's.

There are many different policies available on the marketplace. Some are HSA qualified, others are not. For 2022 the max deductible/out of pocket is 7,050 for single and 14,100 for family. Many times HSA is included in the plan name if it qualifies. Have them look on their insurance card to see about the name and deductible. If single and max out of pocket limit on the card is more than 7,050 then no HSA.

Do they each have their own policy? FSA isn't reported on return. As long as wife's policy is HSA qualified there shouldn't be a problem. Of course she will be limited to the self only contribution.

As long as the policy is HSA qualified. Most of the offerings around here have too high of a deductible to be HSA qualified.

Another option might be with a financial advisor. I've had a couple over the years offer me office space.

Correct. She can contact her bank to see if they can refuse payment similar to a stop payment on check.

My son set it up so I get texts on both phone and computer. If an android: https://support.google.com/messages/answer/7611075?hl=en Guessing Apple has something similar. Much easier to type with a full keyboard. If I need to keep it, I use snipping tool to save it.

Was the Mom the custodial parent?

Yep. I'd say I spend twice the time on a new return as a returning client. Looking over prior year for carry overs and obvious errors, needing to type and double check for typos basic info, depreciation if applicable, among other things. After allowing for things like death my retention rate is almost always over 95%, so I guess I'm doing something right.

IL resident received the $300 property tax rebate. Do I need to need to reduce the amount that was paid through escrow by $300 for the Sch ICR? Thanks.

But not if you limit NYC to Manhattan! It's pretty amazing how granular it gets. I don't live in any city limits and if I put in my township rather than nearest town is has my transportation costs as higher. Guess it realizes that I need to drive more to get to necessities like a grocery store than people who live in town!

I ran across this site years ago and find it quite interesting. I put in my town and Lion's Fairfield, CT. Her cost of living is close to double mine, so it make sense she should be charging double. https://www.bestplaces.net/cost-of-living/

Not at all contradictory. Who says H&R is market rate? My fees are almost always higher than non licensed preparers. Among one person CPA offices such as myself and EA's, sometime my rates are higher and sometimes lower. Like I said, I charge what I feel is fair. Your comment of I think so little of myself and saying I'm stupid in the post Judy deleted says more about you than about me. Peace out.

I have some low income clients with a lot more class than high income clients. Per form has always worked well for me. A lot of circumstances I'll give a discount off the set fee, and a handful get surcharge above the per form charge.

It's based on annual income. If AGI is below 400% FPL there is a flat dollar limit on amount that needs to be paid back.

I've always charged what I feel is fair to both client and myself. My fees are generally well below the national average, definitely less than the H&R's. I don't aim to be the lowest cost, just what I think is fair. The per form fee ended up at $322 which I felt was high so I discounted it by $50. Their kids are aging out, so I spent several minutes with them explaining what credits they will be losing over the next few years. After all that he wanted to know what to do to lower my fee!