jklcpa

Agree completely with Dan's post above. I have also reported the sale and related basis reduction as he mentioned and never heard from IRS. I also kept a note of the basis reduction in a permanent file and as a brief note/reminder in my tax program that would carry forward with each subsequent year.

What type of easement and with whom? Was this a voluntary transaction or involuntary conversion?

I'm sorry to hear this and I, too, remember him and his generosity in helping many of us. Thank you for letting us know and posting about the fundraiser.

No, the amount in box 9 is more than informational. It indicates the amount of depreciation taken but is unrecaptured because depreciation on the asset sold wasn't using accelerated depreciation, however that amount has the potential to be taxed at a maximum rate of 25% but could be less depending on the other income on the return. That box 9 amount will be incorporated in the Sch D worksheet. This link that I included above has a more detailed explanation: https://www.taxcpe.com/blogs/news/recaptured-and-unrecaptured-real-estate-rental-section-1250-gain

No. The IRS doesn't know when the withholding occurs and allows for the assumption that it is ratably throughout the year, and your software will automatically divide it evenly. IRS knows only the dates that the estimates were paid.

Yes, that is correct for 2019. IRS gave leeway for 2018 because of the late passage of TCJA and the late issuance of revised withholding tables. I also added more to my last post too. Sorry for the late edit.

Yes that is correct. Also, in your first post, the taxpayers' penalty for 2018 should have been waived because the IRS adjusted the percentage from 90% down to 80%, so while they didn't meet the 100% of prior year exception, they did actually squeak by with 80% of the 2018's liability being paid in because of the $7,000 in withholding (8,742 * 80% = 6,994) . ETA - also from your first post - if you know they will fall short and be exposed to the underpayment penalty for 2019 , the final payment must be in by 1/15/20, AND even doing that the taxpayer can still have a shortfall in any of the earlier quarters. If the exception to the penalty has been met though, then YES, it is possible to pay the remaining balance due by April 15th.

When AGI exceeds $150,000, or $75,000 for those married filing separate.

Brandon, it may be helpful to know which years you are working with, and were the backups made using ATX's backup function from within the program? Are you then using the restore function also from within the program itself? Backup and restore using other methods or commercial software will definitely cause these errors. Is this also related to moving files and programs to the new computer that you posted about separately? If so, were the programs installed fresh on the new machine, not copied or transferred from old to new? I haven't used ATX in a few years now, but it used to be that from within the program, the backup function would allow the user to change the location of the backup. If this is still an option, try backup directly to a flash drive or CD and then using the program's restore function from that rather than backing up to the default and trying to copy the folder because you may be missing a piece of the puzzle. If you are using the functions from within the program and still having problems, you should call ATX support.

In general, a spousal waiver wouldn't be needed for an IRA. However, in community property states the spouse would have a claim to any retirement savings made after marriage, but not contributions prior to that. I'm not in a community property state, but if you are advising a client that is, you'll have to take that state's laws into consideration.

@Christian, you have two different types of retirement assets in your first post, and you later brought a second storyline into the mix as well. My post was about IRAs only in response to your original question about your client, and made prior to bringing in your cousin's situation where a wife, a trust, and grandchildren were mentioned. Sara's post is about ERISA that covers most retirement plans of companies and that would include your client's 401k. IRAs aren't covered by ERISA, but SIMPLE IRAs are because those are employer plans.

I want to clarify that the number of views is meaningless. If I look at a topic 10 times, that is 10 views and not 10 people. Other members will view a post multiple times to view the responses, for whatever reason, and may not have the technical expertise or some other reason for not wanting to respond. The number of views would also include any "guests" or the public view the post because it comes up on internet searches, and those viewers are unable to post. I'm not sure if bots and webcrawlers are included in the views, but if they are, those would also add to the count.

https://www.irahelp.com/slottreport/what-happens-when-estate-inherits-ira

@Pacun, no, this is not correct. Please see the exception in the code sec I posted above. Because all of the rental came after the period of being used as a residence, as long as the taxpayer used it for 2 years out of the last 5, hasn't used the exclusion on another home in the last 2 years, and meets the use requirement, he or she will be allowed the full exclusion. The only thing will be to segregate out the gain resulting from the depreciation taken that will be taxed at ordinary rates.

Is she reporting on a purely cash basis because her receipts allow her to be a small business that doesn't require inventory reporting that would make her either modified cash or accrual? Artists have exemption from the unicap rules if they qualify. As for distinguishing materials & supplies in COS from other supplies, you should have that discussion with the artist. I'd think that items such as canvas, paints, frames, framing costs, hardware, freight and other expenses to acquire those items would all be in COS. Other more general supplies such as easels, brushes, solvents and cleanup chemicals or shop rags indirectly related would be in general supplies in other deductions. That may be splitting hairs and the client should be able to elaborate what is contained in each total.

@schirallicpa, read the linked page for sec 121 for yourself and see what you think regarding the period of nonqualified use as it applies to your client's fact pattern where I believe your client falls into the exception in sec 121(b)(5)(C)(ii)(I) . Here's what it says:

Margaret has it right! Love your brain picture. After 10/15, many of us are "vacationing" or needing to do this:

Yes, all too familiar. What tax software are you using now? Ready for next year?

If you want to take a look, Google "2019 draft 1040" and look for the link to IRS site. I'm on a tablet right now and can't post a link because the web address automatically goes to a download the draft form as a pdf.

The checkbox on the 2018 form was on the righthand side directly below the spouse's SSN.

The early draft of the 2019 1040 didn't have the checkbox to indicate full year coverage, but that doesn't mean that it won't be added to the final version .

IRS will shut down MeF systems for year end maintenance to prepare for the upcoming season. Times shown are the IRS cutoff. Please check with your software provider for the actual cut-off for transmitting through their service. Individual returns: IRS will accept returns up until 10 p.m. on Nov 16, 2019 and will reopen in 2020. Business returns: Schedule Shutdown for "Send Submissions" only is scheduled to begin at 11:59 a.m., Thursday, December 26, 2019, to prepare the system for the upcoming 2019 Filing Season. Transmitters can continue to use the other service requests except "Send Submissions" until 11:59 p.m., Thursday, December 26, 2019.

IRS will shut down MeF systems for year end maintenance to prepare for the upcoming season. Times shown are the IRS cutoff. Software providers will have an earlier time for transmitting through their service. Individual returns: IRS will accept returns up until 10 p.m. on Nov 16, 2019 and will reopen in 2020. Business returns: Schedule Shutdown for "Send Submissions" only is scheduled to begin at 11:59 a.m., Thursday, December 26, 2019, to prepare the system for the upcoming 2019 Filing Season. Transmitters can continue to use the other service requests except "Send Submissions" until 11:59 p.m., Thursday, December 26, 2019.

Bill, your wife certainly has great taste. The necklace and shoes are awesome, as of course, are you! The husband and I were reminiscing after I showed him your wife's shoes because I had a very similar pair that I wore way, way back when we were dating. He said he couldn't take his eyes off of them. Thanks for sharing.

Bill, I'm so glad you found the necklace! I'm back in business too with a new lock, multiple keys stored safely, and the key code written down and registered with the company.