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You don't have to use the software's home sales input area if you have all the data and already know that the sale qualifies for the exclusion and the amount of the exclusion. If you know they received form 1099-S and need to report the transaction(s), you can report them directly on form 8949 by entering the proceeds, basis+closing costs, and in col F use code "H" and back off the nontaxable portion of the gain that should be shown in col G as a negative number. That should result in -0- taxable gain in the final column H. Do that for each sale.

I would put that on Sch C. I don't see any connection to cats and farming because cats are not livestock.

I've never done 20 in a day in my entire career. Different type of clientele, maybe? The returns that I have in now and the ones yet to arrive will each take hours of my time, and that's not including scanning, assembly, and possibly meeting with the clients.

Thank you, Abby Normal. I've never heard that about the UBTI before, so learned something new today.

Right there with you all. One of the things that also happens to me is when I'm working and see a blunder made on the prior year's return, like completely missing the kiddie tax or some such thing.

Yes, he's ineligible because of her coverage if her plan covers the same things as his. If you need a reference, it is irc sec 223(c)(1)(A). If the excess was discovered last year, it should have been included back in taxable wages. His options now are to leave it in, include it in income and pay the 6% excise tax, and he could apply it in 2022 as a contribution assuming he is eligible this year. OR, he can withdraw the excess + earnings before the due date and it would be as if the contribution wasn't made. I believe there is also a rev proc that allows one to make the correction after the due date also. I remember seeing that in the instructions for form 8889 when I was looking at that the other day. There is a whole section on excess contribs by the employer.

Are you sure the partner's basis is the same as the capital account for this partner? Many times it isn't.

8283 instructions says 1098C or othe similar acknowledgement, and those instructions has details of what is required. As to the value, I wasn't implying that the value was overstated but was merely making a general observation about how prices of used vehicles have increased since the beginning of 2020. Sorry I brought it up.

Agree with Lion that possibly using the 1098-C may help. Client has met the exception to using proceeds because the charity is keeping the vehicle for significant use for itself. If the 1098-C has all the required information including that the charity is keeping it, the deduction should be allowed in full and not limited to either -0- or the other $500 limit. It's interesting that in today's market that this older car's FMV is higher than basis. I know there could be lots of reasons for that, but the value of used vehicles has risen dramatically since the shutdown and supply issues of new cars, parts, and computer chips.

No, because he withdrew the excess + earnings before the due date, he isn't subject to the penalty. Instructions for Form 5329, line 47 says to report this distribution on Form 8889, lines 14a and 14b. I find this interesting that 14a won't tie to any 2021 forms 1099-SA, and that distribution should be reported by the custodian on a 2022 1099-SA with code 2. I'd get the documentation of the withdrawal and any calculations of how you arrived at the earnings amount NOW and keep it in case the IRS questions it. It's easier to keep it now rather than having the client try to find it again ~ 2 yrs from now. Similarly, I do this for the 60-day IRA rollovers too, in case IRS questions the timing.

According to this KB from my vendor (not ATX), total characters and spaces for both names combined can't exceed 35 characters. Try eliminating middle initials, use first initial only for spouse, and possibly shorten last name to 5 or 6 characters. http://kb.drakesoftware.com/Site/Browse/Name-exceeds-35-characters

Maybe we should shred some documents and say we're finished. https://tenor.com/view/brooklyn99-papers-workpressure-office-workplace-gif-18744235

Yes, you should delete that. The election is made by not reporting it and attaching a statement of details. Does the ATX statement include all of the required information as outlined on page 15 of Pub 547 under "How to Postpone A Gain"? If it helps, this is the statement I used for the last one I did that was for business assets: PostponedGainReducingCapitalizedCosts.pdf

It would be helpful to know what software you are using.

Yes, if the AQEE exceeds the distribution, then the earnings are tax-free, but if they are taxable, they'd be reported on 1040, Sch 1, line 8z. As I said in my earlier post, that is why I put them on and then back them off with a negative number that brings the taxable portion to -0-. That way if the IRS' AUR was to match up the 1099Q, it is on the return as is my pdf attachment of explanation.

In the cases I've had, the parent's income was too high for any education credit so that made it easier for me. The screenshot below is the explanation that I've attached to the return as a pdf. On the student/child's return, I report the earnings as other income and then the same amount is backed out as nontaxable resulting in no earnings being taxed. Your case may be different.

I'm skeptical. My knee jerk reaction is that this person wants a he-shed or man cave that he is trying to deduct. Questions in my mind, not necessarily for the client are - Does he do his own repairs now or have the skills to do so in future? Does he use a mgmt company that arranges for repairs, or do that himself? How does this work with him in the military, and who does repairs if/when he is deployed? Lastly, what type of repairs could he need a workshop for that he could fabricate something offsite in the workshop? Wouldn't most of that type of work be done on site? What exactly will happen in this workshop? How/where would you put this on Sch E that isn't a trade or business, and with multiple rentals which property would you assign this to? I'm assuming a depreciable asset here.

sec 1033 election is made by not reporting the gain in the year of loss & reimbursement. The tax years remain "open" during the replacement period, and if the replacement doesn't occur or if the gain isn't fully deferred b/c not enough was reinvested (if TP used money for something else like a car or trip, etc), then you'd go back and amend. I'd still attach the statement. This is an older article but explains it well: https://www.journalofaccountancy.com/issues/2002/sep/thetimingofsection1033elections.html The instructions to 4684 also has information on gain deferral and timing of replacement.

Pub 547 has the information on what is required to be included in the statement you need to attach.

https://www.wolterskluwer.com/en/expert-insights/casualty-loss-rules-differ-for-personal-and-business-property#:~:text=If you elect to defer,that you are choosing to

She is able to defer the gain because of reinvesting all in the newly rebuilt property. She would recognize gain on any proceeds NOTreinvested. It's an election, and you have to attach a statement with all of the details. I have one now that was a fire of a personal residence with replacement value insurance and the rebuild spanning 2021 and 2022 with many delays and constantly revised project costs because of escalation of materials costs due to availability and shipping issues due to covid.

I've had some large 1099s with wash sales where I used only totals, and IRS never asked for more information. I'd say you're probably safe to use only the totals, especially if these wash sales occurred in the time frame for covered securities because that information has already been reported directly to IRS.

Disrespectful post has been removed and topic has been exhausted. @artp I'm sorry for closing your topic and hope that you'll post a followup when you and your client have resolved this. Please feel free to start another post if you have additional questions.

Sorry if I gave anyone the impression that I print everything. Much like Lion, I print the results letter, comparison, the forms, and any worksheets that another preparer would need for carryover or ongoing deductions such as depreciation schedules, etc. in case anything happens to me...like suddenly deciding to retire. , just kidding. I certainly don't print every worksheet. I do just click on the box for "all" pages of the preparer's copy that is saved as a pdf. What I don't do is complain if a new client brings in too much detail in the prior years' returns. I'd rather have too much than to struggle to have enough of the prior year.

I'd think this falls under sec 1041 for "transfers incident to divorce" and where it says that transfer is treated as a gift where the recipient picks up original basis? And wouldn't the $200K be considered the property settlement related to the divorce and splitting of the assets and not just specific to the house? https://www.law.cornell.edu/uscode/text/26/1041