RoyDaleOne

I think the extension was shorten to 9/15/09.

I guess RR means rest and recreation, or maybe Railroad.

I semi-disagree. It is your job to ask, because, you are the preparer and where the income and deductions are reported depends on the answer to that question.

So, I agree it is not your responsibility to determine fair rental value, however, you need to ask the question, otherwise, how do you know where to place the items?

An assumption either way, on your part, is answering the question for your client.

Warning, everyone of my rollovers for Corporation that I am trying to extend wants me to update the 2007 return.

What a waste of time, and, there was no warning from the rollover bunny about needing to update the 2007 return.

Now I have to redo all of them.

The remaining unamortized points are written off by entering such remaining balance on Schedule E as another deduction.

I mark the asset as a disposal with no gain or loss.

Everyone please ignore my following rant, I apology in advance for my poor taste and lack of consideration.

1. The Pub clearly states that you do not amend the return, any adjustments to the installment sale are made in the year in which they occur.

2. There is insufficient facts to verify your computation, anyway, I would not verify the computations.

3. Without a written modification the original agreement stands, therefore, there is no basis for changing the way the sale is reported, that is until there is a written modification or, until the seller satisfies the note. That is the seller takes a reduced amount in full payment of the note.

Seller must calculate the gain or loss realized on the repossession and the new basis in the repossessed property.

Any loss resulting from an adjustment in the selling price shall be considered as resulting from the sale or exchange of the property in respect of which the installment obligation was received. That is the taxpayer is entitled to a deduction of the same character that results from the loss arising from the reduction in the selling price .

Part of your answer is here.

http://www.irs.gov/publications/p537/ar02....publink10001172

Unless there was actual modification in writing of the original agreement I am not sure you can adjust the sale price.

I think not not head of household, however, here is the link to the myriad of hoops to jump through.

http://www.irs.gov/publications/p501/ar02....ublink100041887

See qualifying child and or qualifying relative.

See Page 2 of Pub 4861 Interest included in canceled debt.

http://www.irs.gov/publications/p4681/index.html

There is no requirement to file any Florida Corporate Return if the Corporation is an S Corporation.

The only item to be filed is the Annual Report, and now that is mostly on line.

Just remove the complete Florida returns tabs form the client.

The lender is deemed to receive the FMV of the property at the foreclosure sale as payment against the debt.

The determination of FMV is an area that can be questioned. Who determines FMV, the lender? That is a laugh, could the lender accurately determine FMV when they made the loan?

The problem I have is that the owner could have given the seller (mortgagee) a deed in lieu with an agreement that this fully paid the debt and avoided this problem.

The taxpayer paid twice what the timeshare is now worth?

I personal don't like the outcome in this type of situation.

The real entity that should take the hit, if anyone, is the seller of the time share. They are ones that got the real income. The taxpayer just overpaid and financed the deal.

I suggest that the amounts on the 1099-C be vertified, as much as possible.

Unless it is way below FMV just put everything on the Schedule E. There are a number of reasons why renting some below FMV is still renting for profit. for example: "The fair rental value of a home can be discounted for renting to trustworthy tenants and to avoid paying a management fee."

David I agree with your assessment, naturally, as you would, provided that the 1099 is correct.

Very good catch.

Litigation proceeds and the related legal fees generally fall into four categories:

1. Personal injury claims where the proceeds are excluded from gross income under IRC section 104(a)(2).

2. Discrimination claims that qualify for the new deduction for AGI under section 62(a)(20).

3. Claims where only the net proceeds. Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security.

Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the litigation are reportable as gross income.

4. Claims that remain fully includible in gross income, but where the related legal fees and court costs are not eligible for the above-the-line deduction outlined in section 62(a)(20).

Get Pub 4681 do the Table 1-1 Worksheet.

No COD Income, see Lines 1, 2 and 3 of worksheet.

Thst does not sound correct to me. However, I will have to post more later, I have to go.

Are you asking about the 1045 and 1045 Schedule A, also?

What was the cause of action for the settlement?

I ask because not all settlements are treated equal.

Passive activity losses from the immediate prior year for rental properties are entered as a rental deduction on the property to which they apply in the current year, and the process starts over.

FYI

Prior year suspended losses are taken as a deduction in the current year.

You bet cha.

Doesn't sound like Sarah Palin.

I think that is a great solution.

I suggest entering Joe Buyer, et. al.

A single member LLC is a disregarded entity, unless an election otherwise, for federal tax purposes, therefore enter the K-1 in ATX of the single member as if it had been issued to the single member.

My apologies. However, "Business began last year as a sole-proprietor with beginning depreciation on the truck. How is this disposition treated?" this statement implied the business began in 2008, and I assumed the depreciate you were asking about was for 2008 and not 2007. Sorry about that.