Lion EA

I seldom do estate returns, but one big reason to file anyway is to elect "portability" by filing a return to move the deceased's unused exemption to the surviving spouse. She/he might win the lottery or the house or other asset might skyrocket in value during the rest of her/his lifetime. It's a CYA so her/his heirs won't sue you for not protecting their inheritance from estate taxes down the road. At least put in writing that you discussed the benefits of filing and have her sign it for your files.

I've told some to call his/her divorce lawyer about what to provide, or their lawyer doing the closing on the mortgage about what is required. They seem to listen to the lawyer that they pay more than me!

Yeah, I upload to FileShare.

I will give a copy to a client to do with what they want. If joint, I will give a copy to either of the spouses who signed it. Let them argue with each other instead of me! I too had a pushy bank call me to say that I (and I think he yelled the word "you" at me) was losing my client a low mortgage rate by not emailing the bank a return copy or comfort letter that very day; then the client, who is a lawyer, called to say he'd sue me. Of course, the bank and my client had been working on the mortgage for weeks and could've called me soon enough for the client to receive a copy to use.

Yep, I tell people I have a virtual water cooler.

So, the answer is that they cannot dissolve the partnership and continue renting the property? Does it make a difference if they want to use Schedules C or if Schedules E? Does it remain on a 1065 no matter that his clients want to dissolve? Can't be done? Partnership continues as long as the property is rented, or is a business? I'm just trying to understand what you're telling Yardley. Where does the Schedule D come in in his OP?

I thought I was asking questions re Yardley's OP about what happens when the partners of a partnership want to dissolve the partnership and distribute all the assets and continue, perhaps, as individuals/sole proprietors/Schedule Es. If the properties, as the OP asks, are still rented or produce income for the former partners, well what? Do they appear on the individual Schedule Ds, he asked? At what "sales proceeds"? Judy says the cost basis would be the basis in the partnership, but not more than the former partner's basis. I was hoping to see what you experts tell Yardley about how the numbers flow and where to, with this dissolution but the "activity" of renting continues. I'll start a new topic if you think that's best, but I want to hear all your guidance to Yardley.

I was typing while eating a bowl of soup and didn't proofread. I meant Then is the adjusted cost basis in the hands of the partner receiving the asset the same as the book value to the partnership when it distributes the asset?

I've used IntelliConnect for a few years. It gets better each year, and I learn more about using it each year. I can access it from within ProSystem fx and from any browser and on my iPhone. If within a return, it takes me right to info re that line. If you have young staffers who Google everything, you can have your browser return the IntelliConnect results right at the top of your browser results. You can choose by Code or Regs or Explanations or Charts or.... I can print out just the highlighted passage I need, but it includes the source for me. I can save to my-named folders, such as CT or Property Regs. Take any webinars that are available and use the built-in help and videos to learn it.

Thank you, Mr. Davis. Then is the adjusted cost basis in the hands of the partner receiving the asset the same as the book value to the corporation when it distributes the asset? Holding period for depreciation? Glad I don't have any partnerships holding real property now. I brush up by taking classes when I get something new in my practice. You and this board help me know what I need to study!

Don't have any rentals owned by more than one (or more than just H/W) right now, so haven't looked this up lately; but, I was taught that joint ownership of a rental property in personal names (not owned by an entity) does not mean a partnership. Although, the owners can choose to be a partnership. I do know the regs have penalty relief for partnerships with 10 or fewer (fewer than 10?) partners for not filing a 1065 as long as all is reported on the individual returns. If your clients prefer filing Schedules E, I'd go to the IRC and research. Also haven't dissolved a partnership with real property, so hope someone answers that question for you. Doesn't the partnership distribute assets at FMV to partners? (Or, book value?) Might partnership then show gain or loss that passes through on final K-1s? Partners receive assets at book value for depreciation? Just moving this up so someone who knows will jump in!

Just for the record, I use ProFx and keep my costs down by using pay-per-return and pay a fraction of that CPA firm's cost. I have found that the additional returns I can prepare -- and charge for -- each year pay for the cost of my software.

Definitely keep the 1941 stuff. Put it in a glass case on your wall. Let your clients know the history of your firm!

How many pages does it have?!

I had a carpenter client who installed a large mail slot in my front door. One of the best things I've done! I do remember the hand-built mailbox you remember, so think that preparer will jump in with his details.

Ones that don't have an applicable financial statement, maybe? Away for Thanksgiving, so I'll read the notice next week. See the Notice # in NECPA's post.

Check with your web site. It may include a simple portal. (My CCH SiteBuilder web site comes with FileShare included.) Or, your tax software. I've heard people talk of that, too. Or, your ISP. There are some free and low-cost options out there.

This getting old is maintenance, maintenance, maintenance! But, it's better than the alternative....

And WHY is this a tax issue?! I am definitely raising my fees re ACA.

Had some ACA updates Monday night in a 2 CE tax class. With exceptions of course like anything from the government, the company issues the forms only if they are an ALE (Applicable Large Employer, and the number of employees is different for purposes of issuing forms and for paying penalties!!) and self-insure their plan. For my small biz clients, the form will come from the insurance companies and not them. Everyone who had insurance for even a month (the forms are to be month-by-month) will get a form. Most of my clients will have forms from insurance companies and a very few from of mine will have the 1095-As. It sounds like an employee of an ALE would get two forms: B from the insurance company and C from employer with information about offering program. What a nightmare.

Same. In fact, I label it Continuing Education.

Also, CCH's e-Sign. No license fee. Just pay when you use. Can use for verified signatures, such as signing tax returns, or for unverified for a smaller fee.

Try to get demos of the programs to try with your tax prep software. I have CCH's Scan & Flow. Have done a lot of scanning/organizing but not much flowing (computer crash, scanner upgrade, laptop the program was on died, etc.). Each year the program reads/recognizes more and better; scanning was never the problem. An occasional is it a 6 or an 8 question, but it color codes it for me to check against the original document. Do get a good quality scanner such as Fujitsu, as sometimes it's the light source in the scanner that's the weak spot and not the software. You'll need to test how the programs compare when importing into your tax software. And, how the cost compares to hiring a data entry clerk.

I am very sorry for your loss. My prayers go out to you. (Unfortunately, I'm in CT; but I know you will get some help.) Please visit this Community from time to time to let us know how you are.

I'm doing more and more of what JohnH does. Used to think I needed the face-to-face interview, but learned that receiving the hard copy and having hard copy of what I told them (well, electronic but printable if needed) is really more important. I build a fee into my tax prep fee to cover those questions throughout the year. I do want them to contact me BEFORE they do something with tax consequences, so I try not to bill extra. I adjust their tax prep fee each year as I get to know their needs better. If I don't feel used, the fee stays the same. If I was feeling put upon during the year, next year's fee goes up. Sometimes I detail the reason, sometimes something vague like Bookkeeping or IRS inquiry or..., sometimes it's just less of a discount or I refer to some tax law change when I talk with them. But, I try to have only one bill per year so they feel like they are receiving service from me during the year as opposed to paying those 15-minute increments like their lawyer charges.