RoyDaleOne

A link in the link above is to the article Icount is referencing. In addition consider this proposed regulation under 263, if this is still in effect. (3) REPLACEMENT OF A MAJOR COMPONENT OR A SUBSTANTIAL STRUCTURAL PART-- (i) IN GENERAL. For purposes of paragraph (g)(1)(vi) of this section, the replacement of a major component or a substantial structural part means the replacement of-- (1) A part or a combination of parts of the unit of property, the cost of which comprises 50 percent or more of the replacement cost of the unit of property; or (2) A part or a combination of parts of the unit of property that comprise 50 percent or more of the physical structure of the unit of property. (ii) EXCEPTION. An amount paid is not required to be capitalized under paragraph (g)(1)(vi) of this section if it is paid during the recovery period prescribed in section 168© (taking into account the applicable convention) for the property, regardless of whether the property is depreciated under section 168(a).

Also try the link in this link. http://www.taxalmanac.org/index.php/Discus...of_replacements

Work smart.. etc... nothing new under the sun. It is all a matter of personal motivation. Nobody can motive you but yourself. Think and be smart. Is it that type of seminar?

Where did you get that a first year return had to be filed? That requirement has long been eliminated. No final return either. dor.myflorida.com/dor/forms/2009/gt800017.pdf

http://www.irs.gov/newsroom/article/0,,id=206291,00.html A residence as defined under Section 121, last paragraph. http://www.quickfinder.com/message_board/t...redit_67285.mbx Keith v. Commissioner, 115 T.C. 605 Completed Sale for Tax Purposes Keith v. Commissioner, 115 T.C. No. 42 (Dec. 28, 2000) Same.... Equitable ownership Also, I read and can not quickly find that the a video conference with the IRS, this question was asked. The response was reported in to be yes a contract for deed qualifies for the credit. Sorry that reference is also at quickfinders link, see MikeMack.

Research how to depreciate property that is converted to personal use and back to business use. I would guess no depreciate from time of retirement to the time of conversion from retirement. I would guess you use the adjusted basis as of the retirement date as the depreciable basis on the date of conversion back to business use. I would guess the depreciation period would start over. See Pub 946, it many help.

If the land contract includes a dwelling unit, is there some reference for it not qualifying for the credit. My research, and other people's research, has resulted in the conclusion that a "contract for deed" would qualify for the credit. See jainen answer on quickfinder.

Can you explain what a land contract is, please? Here in Florida, we have a thing we call a "contract for deed".

If the daughter does not pay fair rental value I would suggest that the vacation home rules apply, because, every day of use by the daughter is a personal use day, is it not? Unless, she pays fair rental value.

Proposed Reg. Section 1.280A-2(i)(3) provides that a taxpayer may determine the expenses allocable to the portion of the dwelling unit used for business purposes by any method that is reasonable under the circumstances. Please, note any cautionary comments I have made is that it must be reasonable, and it is only an argument. Therefore, if the method used is reasonable under the circumstances it may be used to allocate the expenses. Heck, make the daughter an employee and go for Section 119, if I recall correctly.

Too lazy, here is a web page. http://www.roseburgaccounting.com/monthly/FEB06.htm

Could you base that argument on some code section or ruling? Yes, I can.

You could argue that you could remove the common areas from the equations altogether. Using only the exclusive use areas. Something like 120 sq ft / 480 sq ft. ( four 12 x 10 bedrooms ) You can use any reasonable method to allocate. Just be ready to defend the allocation as reasonable.

Use the asset entry and disposal feature.

First from 280A: (A) IN GENERAL A taxpayer shall not be treated as using a dwelling unit for personal purposes by reason of a rental arrangement for any period if for such period such dwelling unit is rented, at a fair rental, to any person for use as such person's principal residence. Therefore, have the daughter establish the house as her legal residence, and pay the same amount of rent as the other tenants. Otherwise, there are two or more additional options: 1. Take the position that 75% of the house is rental property, counting only the bedrooms, if of a similar size. Or some variation that results in a portion of the house is being rented. 2. Take the position that everyday of use by the daughter is a "personal use day" and apply the vacation rental rules. This is a common situation with children who are college students living off campus. I would suspect that there is a cottage industry supporting this type of activity in most major college towns.

Add my congratulations.

Add my congratulations.

See: Rev. Rul. 65-79 The property would be 5 year property if not a structural component. You really need a copy of the "U. S. Master Depreciation Guide". Almost any year say after 2004 is good, because, very little changes year to year. The "Guide" is a 1,000 plus tome covering most, but nor all aspects of depreciation. And, you think depreciation is straight forward. I got my copy free from CCH.

http://www.irs.gov/businesses/article/0,,id=134671,00.html What industry is the client?

Based on what you describe, it does not sound like a structural component of the building to me.

(2) EARNED INCOME. For purposes of this section, earned income is computed without regard to any community property laws which may otherwise be applicable. Earned income is reduced by any net loss in earnings from self-employment. Earned income does not include amounts received as a pension, an annuity, unemployment compensation, or workmen's compensation, or an amount to which section 871(a) and the regulations thereunder apply (relating to income of nonresident alien individuals not connected with United States business). Reg 1.32-2

Every tax return is special. Did you not know?

The settlement reduces the basis in the house. It is a return of capital. If the house was a personal asset there is a nondeductible loss.

You could elect not to carryback only carryforward.

Happy birthday and many more.