kcjenkins

And, of course, although not a controlling factor, it's a simple fact that the IRS audits fewer 1065s than they do 1040s. So you get a cleaner 1040, and, in my experience, if the 1040 is audited, often they will just accept the K-1 as satisfying that info in the 1040. So you get an extra fee, but the client gets a real value, also. I've never understood why so many try to find a way to NOT do a 1065?

She's not "in the business of being a medical guinea pig", right? Line 21 for sure.

Don't have to do the work, let the client do it. Tell him to contact 3 local realtors, and ask them for advice on how much he could rent it for.

If not, you can use this https://www.irs.gov/pub/irs-pdf/f1099msc.pdf

Wish your clients were this persistant in getting you the data you need?

The point is that if it's done properly, with all required paperwork, the son IS paying his lender [Mom] and she is paying her lender. But keep in mind, in most cases, you don't have a problem with just going the 'equitable ownership' route. The case I mentioned had a couple of 'sensitive' issues, involving a possibility of divorce for the son, plus Mom's health, etc.

Yes "Equitable Ownership" is the key term. And I also dealt with a case like this a number of years back. I suggested, and they adopted the idea, to protect them both, that the mother set up an installment sale agreement. Had them do it through their local attorney, so that if something happened to either of them they could prove the agreement, and if things changed, between them, both were protected.

Abby, I don't know of any problems this year, but there were problems in the past with trying to change the location for the automatic back up. I would not advise it.

Yes, you only need the 8822 when the client moves after filing, but there are communications going on over some issue.

Tom, I would not dream of removing or moving your post, we can all use a laugh now and then, especially this time of year.

I sometimes did, sometimes not, basically when I had all the info already I usually input it, like Catherine, just for neatness, I guess I'd say. But if it would take significant extra time and digging out info, I did not, because I felt it was not fair to charge the clients for time to do something not required.

Rich, if you follow Jack'a advice.

eFax always worked great for me,

That's what voice mail is for. or email.

Actually, you can 'hide' any post you want to, that you posted, and also you can message any moderator and we will delete it for you. let me know if you want me to.

OMG. If it were possible, I'd make Medlin's post a 'required read' on this board !!!! I just know we've all wished we could do that !

I think by definition, most elections have to be selected every year, never just assumed. Maybe next year they will be able to make it an option you can select with a 'check the box', if the IRS lets them.

https://youtu.be/DoystUCUziM

How are they going to set it up? LLC taxed as 1065? Easy if they do that, GP reported on the K-1.

Don and I went to see Etta James in 2010, it was our last time to attend a concert together. She was amazing, even at the age of 72. When she sang "At Last" the entire place went wild after it. So glad I have that memory.

Certainly when the tp signed the return with a Sch C and they knew they had no business, they should be prosecuted. Perhaps LA assumes that the feds will go after the tp and then they can get them without having to make the case themselves? Since the IRS notifies states when they find tax owed after an audit, and the states then assume the same changes.

Judges often say silly things in divorce cases, usually because one of the attorneys actually wrote the order, the judge merely signed what the two had agreed to. I once had a client bring me his divorce decree, issued in Aug, which stated "he may claim her as a dependant for one half the year, and she may claim herself for the other half." I still laugh every time I think of it. And no, a municipal or state judge [or even a federal judge in most cases] can not override federal tax law. They are both single as of the date of the divorce, so it's either 'single' or 'HOH' for each of them, as the situation may provide.

You guys are sure making me laugh today ! Little Bit thinks I'm losing it. I now have a face full of scottie kisses!