Catherine

Or, like the sign my younger daughter got me for my desk: "I can explain it to you, but I can't understand it for you."

I wouldn't touch this one without a good long chat with my E&O people, for sure.

NOT beneficiaries; rather trustees with a fiduciary duty! I am *not* wedded to the idea that it definitely has to be 2019, or 2016 - or 1986, for that matter. What I AM saying is that there was a failure of FIDUCIARY DUTY on the part of ONE of the trustees refusing to allow a bank account to be opened, and that fact makes this a NASTY tangle, with legal implications for BOTH trustees, for failure to do their fiduciary duty. If it were me involved, I'd want those sorted out BEFORE I picked any year out of all those involved. Look: say they go back and use 2016. Then the actual beneficiary sues the trustees for not disbursing the funds then. YOU want to be involved in that mess, as trustee? Or as tax pro who gets dragged in willy-nilly? Or use 2019; possible same lawsuit except it's over delay in accepting payment, instead of delay in disbursement. Another nasty mess for trustees and tax pro. THOSE are the crucial issues that I see. I kinda don't care what year gets used (because yes, penalties can be waived, especially if there's a good paper trail of the obfuscations and obstacles on the part of the PITA trustee). What I would not want, as trustee or as tax pro, is to leave myself open to being sued by the beneficiary for not handing over, in 2016, funds that could not be legally accepted until 2019.

I'd call support on that one; I have never seen it so I haven't a clue.

If you have a record of that check being re-negotiated multiple times, with the final one being the one that was able to be cashed, I still think that, based on LEGAL status, you did not have receipt until the final check. Talk it over with the lawyer involved, as well as the trustee. There are good arguments to be made on all sides - but don't discount the possibility of action against the trustee(s) by beneficiaries, if receipt is claimed in 2016 but no distribution was made until 2019, contrary to the direct instructions of the trust.

Only in trying to understand it all NOW. It's a big, complex program, with little gotchas and glitches scattered throughout. I am hoping that by next year's filing season they have the basic issues worked out. Until then, Magic 8-Ball keeps saying, "Answer hazy; Ask again later!"

Wasn't on "internal bickering" but lack of a LEGAL option for taking the payment. Without a bank account, and with a trustee not agreeing to open one, there was no legal way to accept the payment. I'd want to know what the lawyer was doing, and why situs and more wasn't settled, and if there is a case for the recalcitrant trustee being charged with acting outside of fiduciary interests. Claiming income in 2016, but NOT distributing it, as the trust required, opens up a possible action against both trustees.

I'd love for Drake to make some changes to their reports. Font size is certainly one! Customization is another; I've managed to wrangle some specialized reports, and tried to save/memorize them, but durned if I can *ever* find them again later. Grrr!

Yikes, you DO have a nice conundrum here - good luck! Last first: situs likely has nothing to do with where either of the trustees live; rather, the situs will be the state where the decedent lived and had the trust written up in. However, rules can vary between states so you'll likely need to check with both NY (generally nasty; that state wants tax on everything - I hear air is on the docket for next year [only half kidding]) and MO about their rules. It sounds like a complex trust, and certainly acts that way. "Terminate on distribution" is all well and good except for the long time between the triggering event and the resolution, so circumstances have forced it. I would think that you have an excellent case to make that the trust did *not* actually get "constructive receipt" in 2016, because it had no way to take possession of the funds (a piece of paper that was not legally negotiable is, to my mind, a block to constructive receipt). However, you should be ready to support that with the paper/email/whatever trail of no bank account, lawyers involved, trustee acting against interests of trust by refusing to allow the bank account, probable re-issuance of check (maybe multiple times) since those are usually only good for 90 to 180 days, etc. So what I would do (and this is without extensive - or really any - research) is prepare $0 returns for 2016, 17, 18, and the real receipt and distribution for 2019. If you are an NATP member, this might be a real good use of their "one research question free per year" service.

Good riddance! We've been swamped with all manner of calls and emails. Mostly about the loan/business stuff, but also about stimulus payments. Out-of-country (US citizen) clients too. ("Am I eligible?" Magic 8-Ball says "Answer hazy - ask again later" aka I dunno!) FORMER clients are calling. People wanting to know why they didn't get the payment for the new baby (born in Jan, not even on the not-yet-filed 2019 return). I've been sending them all to the IRS web page.

I don't see any cause for depreciation. The timeshare isn't really ownership of the building asset, rather it's reserved time to USE that asset.

Ah but you can get 90% or more of the joy by just *thinking* about it. Indulge those fantasies for a couple of minutes, then shelve it and move on.

It all got straightened out.

Nope; they each qualify.

What happened to the rules about rentals that lasted fewer than 10 days? Do those not apply to a timeshare? Or did they go poof while I wasn't looking?

Ooh; that's a tactic I did not think of. He had his broker at the investment firm send me (yet another) copy of the consolidated 1099. Maybe they have the trust documents. I'll email the lady and ask her.

Listed as zero BUT the value of the inventory, as sold to the new owner, goes on Form 4797.

The rent-back has been severely limited for several years now. We no longer recommend the self-rental scheme. No, I don't have a cite handy.

New client, with a Generation Skipping Trust return. I asked for the prior-year returns as well as the trust document. Well, the trust has been around for decades (literally, like fifty years or more) and no one knows where the docs are. OK; whatever, you do what you can do. Prior year returns - they finally manage to dig up the 2018 federal. No state return. At all. Prior accountant (who retired? died? I forget), they claim, told them that NO state return was necessary. Now what do I do? It's my belief that the trust situs is MA (based on residency of the trustee for all those decades). Although there's a chance situs is NY (where the client's father resided when it was set up - although it doesn't *seem* (from a vantage point of fifty-plus years later) that he had much to do with the setup except to recommend setting it up). Choices: Continue as before, federal return only. I don't like this one; either MA or NY is owed a couple hundred bucks of tax a year. File a MA state return this year. Not NY; nothing except residence of a long-deceased gentleman to support assumption of NY situs. Wait and see if the state then comes back and demands prior year returns for X years, plus tax, plus penalties. Recommend filing three closed years. Underlying assumption: the federal tax returns, or original filing docs (brokerage statement) can be dredged up from somewhere or someone. Crawl under my desk with a three-pound bag of Skittles and a bottle of Laphraoig Lore, and stay there until both are gone and this trust return has magically evaporated. I don't like this one, either, as it's a waste of exquisite Laphroaig. Recommendations? (Obviously none of the prior year work would occur until the docs are found, but the 2019 return I need to decide about.)

If the floor and sub-floor were destroyed, I would expense that cost as a repair. Any part above and beyond restoring the floor to usable condition (how worn out was the floor previously?) would be capitalized as an improvement. But the restoration is repair; an apartment must have a sound floor. De minimis expense on the water heater. Fridge I'd either take bonus depreciation or just depreciate without the bonus; it might help more in future years to have the deduction then, in years without the huge repair costs. New roof not eligible for Section 179 expense on a rental. Amend 2018 (two years of incorrect usage to have to file 3115, so lucky to catch it in year two), continue on to 2019.

Not at all an answer - but in reading the thread title quickly, my brain turned it into "depression of defenestration" and I thought someone was so tired of being inside they wanted to jump out the window!

The 3115 asks for totals, so I should think that one for the both will work - just be sure to add the correction for each, in separately to both properties. Yes, attach pdf of 3115. Mail 2nd copy to Ogden.

And in that unlikely event, you tell the auditor that the former spouse skedaddled years ago and cannot be found. Hey, auditor - can YOU guys find him for the client; he oughta know that the client's great-aunt Millie died six years ago and left him her plastic rosary bead set.

Correct as it is stated, assuming other requirements (son's age, marital status, full time student etc) are met.

True, it's a set-up option for client and preparer copies. But the filing copies cannot and never will have ssns masked.