RoyDaleOne

http://www.cra-arc.gc.ca/E/pub/tp/ic72-17r5/ic72-17r5-e.pdf

See Section Code 988 and related Sections and Regulations thereunder.

If the sale is in foreign currency, for the purpose of determining

gain, the cost and selling price of the property should be expressed in

U.S. currency at the rate of exchange prevailing as of the date of the

purchase and date of the sale, respectively.

Pub 519

Thanks, Old Jack.

Form 1310 may or may not be required, see the instruction to the form.

"The character of the amount recovered or the character of the amount deducted

in the later year will be the same as the income or deduction recognized

in the prior taxable year."

See Arrowsmith v. Commissioner 1952

To answer the original question is that you are suppose to reduce any medical expenses you have by the cash received.

It is irrelevant whether an insurance contracts benefits are payable in cash or services for purposes, for deductible purposes. However, if the cash payments are equivalent to disability payments then the payments are not deductible.

She is incurring losses that are directly connected to a trade or business.

She is not in the business of selling her business, or repossessing it.

But for the original trade or business there would be no "expenses".

I am not saying "all" of the expenses are Schedule C, however, some, or most are.

First, do the repossession on the installment sale.

These expenses are not preparatory expenses to a business, nor is this a hobby loss.

The mere fact that upon repossession the taxpayer chooses to close what little remaining business there is does not remove her from once again being in a trade or business. She is merely choosing the least expensive way to cut the business losses.

Why would the premiums be non-deductible?

See Pub 537 for what you should do on repossession (or default) on an installment sale, relative to gain or loss realized.

The seller (your client) is effectively back in possession of the Schedule C activity, because of the default of the buyer,

and in my way of thinking the expenses being incurred is directly relatived to such activity.

Say for example if this had been an apartment building the issue is a little clearer because everyone will agree that upon repossession the seller is back in the rental business.

Yes on reactivating old Schedule C.

Depending on the situation you may or may not have a loss on the note receivable. Is there any unrecovered basis?

Just delete the 6252.

If your client contacted an attorney have the client, if possible, get a letter from the attorney stating that it would cost more to try and collect the $10,000 then it is worth.

For a theft deduction you only need to prove 1. the amount of the loss, 2. that the loss was a crime under local law, 3. and the chance you collecting is almost nil.

Happy Birthday Bob,

from Booger and Me (who had birthdays yestaerday).

Okay, I can not speak for Booger, nevertheless, Happy Birthday.

Banana? What happen to the cookies?

Quid pro quo, if the giver except sometime in return, a referral, a good review, it is not a gift.

Dunnegan v. Commissioner, T.C. Memo 2002-119

Love it. I use all the time.

Did Mom may have inherited all or part of the house from her husband?

Maybe stepped up basis for Dad's potion of the home includible in his estate.

I am guessing not because of the lack of good elder care tax planning, but somethimes one never knows.

On the other hand, the mom retained a deemed life estate by continuing to live in the house, if she had pass away while living in the house, the house would have been included in her estate tax return. However, I don't recall if the the move to the nursing home would be considered a temporary absence and thereby maybe causing the sale to fall within the Section 121 exclusion.

The brother would be considered a nominee holding his brothers' money. and as such, reports 100% of the interest on Schedule B and and reports the nominee amount it the line provided for same.

I am aware of two methods states use in taxing their citizens (residents). MA using the worldwide income method, which treats all the world-wide income as MA income and taxes that amount, while giving you a tax credit for state income tax "paid" to other states. If my mind is not failing me I checked this treatment and found that it was approved by the US Supreme Court, Inter-state commerce clause and all that.

Sun burn, sun burn hair helps prevent sun burn, and newly exposed skin is more (very much so) likely to burn much easier. Hey, I got sun burned sitting in the shade from reflected sun light... And recently shaved my head, any I never go out in the sun, only from home to car, car to home very little exposure to direct sun light and my head showed signs of redness, no burn, lucky.

I live very close to Orlando, any questions or are you an experienced traveler?

Wow, husband and wife the same age?

I have seen in the contracts for tax software that support would end on xxxxxxx date. The company does not fine it reasonable to support software for years after the inital filing time.

Right On....

Nontaxable in Florida. LOL

I used MS Money and enter the buys and the sells works great.

Commitment fees are amortized over the expected duration of the commitment