RoyDaleOne

Happy birthday and many more.

Antique musical instruments can be depreciated, cite available upon request.

See Regs. Sec. 1.752-2( c ).

Nothing, SunTaxMan I am.

One place to look is Form 6198 at risk basis limitation.

I am not sure I have ever seen a place to enter the an S Corporation basis in the 1040 package.

I use a spreadsheet if I need to track the basis other than where you mentioned in the entity return.

Well, just to be different enter $1.00 income and $1.00 deduction to offset. You still take depreciation on assets that are idle, however, the depreciation ends when the asset is retired from service. Generally, sale, exchange, abandonment, or destruction, see Reg 1.167(a)-10.

The determination seems to turn on whether there is a permanent closing of the related trade or business, or the trade or business is in a temporarily suspension of the related trade or business due to business conditions.

http://www.taxschool.illinois.edu/downloads.html

Recordkeeping in a nutshell.

65 of them - yes I am getting up there...

Thanks everyone for the nice thoughts.

Roy

Looks like the taxpayer is not going to have a capital loss carryforward.

Generally, you should not move rental properties' real estate taxes and interest from Schedule E to Schedule A. Business expense, passive activity, and all those rules you would be circumventing.

Sometimes you can when it is based on personal use limitations, however, not for other reasons.

There was some hope, but it is to complex to discuss in this forum, and I am not sure that anything can be change.

As mgmea has tried to educate the readers, a task which I turned down, I hope you comprehend and appreciate mgmea efforts.

Great job you are doing mgmea.

You can sent the details via Form 8453 or something like that.

Yes Line 21, net of attorney fees if there was a fund setup, assuming the action was not for personal injury.

Wow, my bad read I saw Exxon not Enron. lol

As, I tried to state, the need is for someone that is competent in this situation.

The main concept is that full and adequate consideration was not paid for the transfer of the farm to the partnership(llc) and therefore the value of the farm is included the descendent's estate. This results in a stepped up basis for the farm and the possibility of estate tax being due.

The $1.00 on the deed is irrelevant.

There is some hope, but it is to complex to discuss in this forum, and I am not sure that anything can be change.

However, from the facts, if correct, as posted I am sure someone did not know what should have been done when the parents were alive. There maybe more to the story.

IRS Letter Rulings and TAMs

200524001 5/17/2005

(2) LIMITATIONS

(A) DOLLAR AMOUNT

No deduction shall be allowed under paragraph (1) to the extent

that the amount of such deduction exceeds the taxpayer's earned

income (within the meaning of section 401©) derived by the

taxpayer from the trade or business with respect to which the

plan providing the medical care coverage is established.

( OTHER COVERAGE

Paragraph (1) shall not apply to any taxpayer for any calendar

month for which the taxpayer is eligible to participate in any

subsidized health plan maintained by any employer of the

taxpayer or of the spouse of the taxpayer. The preceding

sentence shall be applied separately with respect to--

(i) plans which include coverage for qualified long-term

care services (as defined in section 7702B©) or are

qualified long-term care insurance contracts (as defined in

section 7702B(), and

(ii) plans which do not include such coverage and are not

such contracts.

© LONG-TERM CARE PREMIUMS

In the case of a qualified long-term care insurance contract (as

defined in section 7702B(), only eligible long-term care

premiums (as defined in section 213(d)(10)) shall be taken into

account under paragraph (1).

See: REV. RUL. 71-588 for planning idea.

Only subsidized insurance is disqualified?

I think the agent maybe correct.

Does the area for office in home still have to be exclusive use? If so, are there two diveways?

Was the efile sent to the IRS twice or did ATX catch and return it to you as a duplicate, without sending the efile twice to the IRS?

You are basically correct.

Prop. Regs. Sec. 1.280A-2

Galazin v. Commissioner, T.C. Memo 1979-206

See Part I Form 7004 5 month extension