MN dhawk

Partners A & B own one commercial rental property. It is rented all of the year and the profit is 14K for 2009. Profits are split 50/50.

B's health is failing so a quick liquidation happens on 12/31/09. A pays off the total remaining mortgage of 50K directly and pays B 100K for his share of the partnership.

A puts the property into a single owner LLC and actually sells it on 1/27/10 for 300K.

I'm confused about how A's payments change the capital accounts and their basis which were equal until the liquidation.

Does B get capital gain treatment on everything and does A deal with recaptured depreciation at the sale in 2010?

As you can see, I don't do many partnerships. Thanks for any tips.

Dennis

The dad died and left the house to 5 adult kids. The kids attempted to sell but couldn't due to the current market conditions. They put it up for rental mid year and got it rented for November & December of 2009. The house is still in the estate. On the 1041 I have worked out a Schedule E that shows about a 5k loss. I expected the loss to flow through on the 5 K1s but ATX is not making it easy. Form 8582 is showing the loss as allowed. I don't do many 1041s. Is my assumption that the loss should flow through wrong or is my ATX software skill lacking?

Thanks for your comments.

Dennis

Consider a 32 or 36 inch TV set. Another CPA in my building uses a 36 and he will never go back.

Has anyone tried running ATX on a netbook. I currently need to be working at three locations. I can leave full sized monitors and keyboards at all locations to plug into the netbook.

My main worry is that this Atom 1.66Hz processor can run this clunky ATX program. I see that Toshiba has a netbook that can hold 2GB of ram and has over 8 hours of battery life. I like the size and could slide it into my existing brief case with the files I need to work on. The 160GB hard drive is adequate. I heard that these netbook processors run way cooler than the laptop dual core processors and last longer.

Does anyone know if Atom can handle ATX??

Would that potentially create any sort of privacy issue?

I can't read any data but I can recognize the ProSeries home page because I used to use it before ATX.

When you use a single 24 inch monitor, do you just split the screen? Now I have 2 x 17" and the prior year's program opens on the right screen, current on the left. I have IE always open on the right and my email client on the left, etc. Does a split screen work the same way? The might be the replacement option when one of these goes bye bye!

It's just a bigger screen. The windows reload where I last closed them. The '08 Atx program is on the left and the '07 is on the right.

On thing about dual monitors did drive me crazy. One monitor went bad. I should have bought a replacement immediately but I was busy and just used one. Programs that were used to loading on the missing monitor loaded but I was not able to find them.

I used 2 monitors for a couple years and loved it. One of them rotated 90 degrees so there was no need to scroll the tax form. Now I just us a 24" monitor and can see the tax forms for both years ok without scrolling. I noticed that a 22" wasn't quite adequate.

The CPA down stairs used a 32" TV and loved it. It got stolen and he upgraded to 36" and he likes that even better. I can even recognize his ProSeries tax program from outside on the sidewalk.

I looks like TRX Pro is TRX Pro TW without all cities, US Tax Masters, prep software and business e-filing.

I got my second TRX card today. It has no mention at all of ATX.

Thank you. We are going with the position that the 50k is just a replacement of the non-taxable inheritance. Then the attorney fees would not be a deduction.

Could not agree with you two more. How many more bridges must fall before people make the connection?

Client got a 1099MISC from The Bar Plan Mutual Insurance Company. In box3 is 50K.

The 38K was his cost of collecting the 50K from the attorney who filed late and lost the claim to the inheritance.

The 38k was a cost in collecting this taxable income.

Client thinks his step siblings in another state ran off with his share of inheritance. Hired a lawyer to intervene but necessary court filings were not done on time. Client lost his share which he estimated at about 150k. Hired another attorney to sue the first one. Collected 50K but it cost 38k.

If 51k goes on line 21 and 38K is a misc deduction on sch a, the AMT kicks in.

If the 50k and 38k are netted on line 21, it seems fair and saves almost 8k!

But is it legal??

Thanks.

With only 20 I would key them in. It would take 5 minutes.

The atx sch d detail sheet lets you key straight down the columns. This can be fast.

The IRS does get the trades one at a time.

In the future we will be able to cut and paste from downloaded broker statements. I believe Drake already allows importing of spreadsheets into schedule d.

Many thanks.

Finally a day in Minnesota that's warm enough to think. I have a client who just moved to Ohio. The W2 shows local income tax withheld of about $2000 from BG and about $500 from 8701!

I assume that BG means Bowling Green since that is where client works. Is there a tax return for BG?

I think they file Form P for Perrysburg since they live there. Is 8701 Perrysbury or a school district?

Thanks.

If its a canister use code sec r2d2, if an upright use code section 3cpo.

I am quite happy with the program this year. This year the MN return arrived about 3 weeks earlier. I have had no trouble e-filing. The client letter seems to take way less time now to remodel. Who gives a client a return copy after e-filing anyway? It gave me great pleasure to see that for 2008 if you add a comparison form, it opens with the prior year data in it. It didn't do that for me last year.

At first I thought this was a nice little program improvement. Its a new preference under privacy. X's are printed on the client copies instead of actual SSN's. X's are printed on one set of 1040Vs and on the state payment vouchers. Because of the print order, it is easy to set the client up to mail in the Xed vouchers.

This year I am doing many returns that I won't be charging for. (family, both my friends and the economically unstimulated) In the past I would let the program print in my name and I would just sign them, since in some years it was easier than getting the paid preparer information out. This year it is somewhat easier. I wonder if the IRS pays any attention to this and estimates my own income. What do you do??

I had the same problem. Clicking on updates would lock the program. On the 4th try, it worked normally. E-filing has been trouble free so far.

I am also happy with the Brother MCF-8840. It has been a great copy machine & fax machine too. I have heard that there is a problem with scanning with Vista. My other printer is a HP 2015 which I don't think jammed once all last season. It is also my favorite printer ever for printing single envelopes. I don't think one of those has ever jammed either. Toner seems pricey.

The ATX technician who helped me install in safe mode first had me open the task manager (Ctrl, Alt & Delete) and close down some of the running processes. That didn't work but she thought that there was a conflict with one of the processes and the install program. Since I will have a new computer before tax season, my concern is VISTA. Are you VISTA users installing OK?

I talked with two clients for at least an hour without any install progress. Then I called tech support and she got it to work by installing in safe mode. The program can be downloaded from myatx.com too.

Happy Thanksgiving to all!

Mine arrived too. Tried to install it to see what is new but it hung up after keying in the activation code! Hope this is not an indication of whats to come.

I noticed that in the copy of The CPA Technology Advisor that just came, the ATX ad on page 21 was the exact same size as the TaxWise ad on page 15. It could be a good sign.