Margaret CPA in OH

This sounds really good - except for the minimum 3 user license. I'm only one person. Too bad they don't offer a single user license.

Doh! What was I thinking? It makes sense that a tax credit is an income tax credit and the tax in this OP case maybe is more like real estate tax. SaraEA, many thanks for setting me straight.

This client doesn't have a local CO return so it really isn't an issue then. Most of my clients are in Ohio but, again, none have ever paid a management fee. They are just renting out another property and managing everything themselves. I know it is late for filing but just got the information a few days ago. Not my fault. Another client is chronically late with data and always has to have 1099INT filed late. They have never told me or complained about late filing fees because I tell them every year when they are due. Horse - water - can't make it happen on my own.

Why wouldn't there be a foreign tax credit for the tax paid to Eritrea? My German clients with income here and in Germany have a tax credit for the tax paid on income taxed by both.

Thanks, Judy, the answer I was seeking. At least in local returns, rental property is considered a business hence my question. I've had several clients with rental properties but this is the first one paying a management company and hefty fee for same. Never too long in this field to have new things appear!

Thanks, cbslee, but I do know everything that you just wrote so must have phrased my question incorrectly. Yes, client received 1099 for gross rents received by management company and statement listing all expenses. My question is whether my client should issue a 1099MISC to the management company for the fee in excess of $2000 for managing the property. Thanks for the reply!

Client paid lots of money for property manager for unsold home when they had to move out of state. I can't find any where whether this is definitely or not requiring a 1099. In some respects, renting the home is a business. What do you folks do?

Hmm, I thought the DL was a state requirement. I do get a nasty note if I've overlooked re-adding the not rolled over info for Ohio. I thought it was an OH requirement not IRS. I got a blue or yellow reminder for my Australian clients who don't file a state return but if I forget for Ohio, it's red.

I saw this before and was so happy to see it again! How wonderful that some folks just get really into the music and the meaning. I've been in church choirs forever and have been told many times that I show more emotion than most which I take as a compliment. Thanks so much for sharing!

Well, I'm not convinced that taking it out of service to renovate for sale is the same as converting to personal use. This is an LLC filing a 1065. I'm going to go with the 50% depreciation and non-depreciable additions so that the sale next year will have all the data there. Who knows what other surprised might appear? But I do have the closing documents so can let them know the result for 2018. I just needed to get the basis ready. Thanks to all for the valuable input. Now back to the Germans... 2018 is going to be veeerrrrryyy interesting!

Whew! You all work so hard. I am not envious but am grateful that I never let my practice grow to that size. Seven years ago when I was 65, my other CPA employee retired so I just spun off all her business/bookkeeping/financials clients and kept individuals - well, a few rentals and small Sch C's, but nothing like it was. This has allowed me to continue while still enjoying the other aspects of my life. I thought I would retire end of 2019 but now, with the trusts gone this year and one PITA client that thankfully chose not to come back, I think I will go for another 3 year license. I've gotten several lovely (the Germans are really nice folks!) new clients by referral and am not ready to let go. Lion, I wish you all the very best medical care and healing so that you might come to TN for the pahty.

But we here ALWAYS knew you were cool! The star is a mere virtual, visual acknowledgement of what is in our hearts. Congrats!

Max and Judy, what a team! I think the two of you have combined for a solution. The options are Sale/abandonment; Installment sale; Casualty/theft; Like-kind exchange; Converted to personal use; or do not calculate gain/loss. None of these fit this situation but I can change the use to 50%, add the renovations as non-depreciable and sell the sucker in January! I'll check the depreciation calcs but honestly think this will work. Great minds on this forum! Again, what a team.

Thanks, Terry. It makes/made sense to me to stop depreciation as of end of June but do I mark it as abandoned (even though it wasn't)? It wasn't sold then or converted to personal use or destroyed. It never was a personal residence, always a rental. I can't show the disposal at that time as significant improvements were made prior to sale which obviously affects the basis. But how to keep it in the return while adding to the basis but not taking depreciation is my dilemma. Wish it had sold in December! Still scratching my noggin.

Thanks, I'll look it up. I probably bypassed it then as not applicable at the time but now's the time!

Client had rental until end of June then extensive renovations to sell. Am I correct that I have depreciation only until June? However it wasn't disposed/sold until January 2018 so not sure how to manipulate that in ATX for 2017. Ideas?

Abby Normal, you are just amazing! Well deserved Star for so many reasons.

Judy, we are all accessories but not to worry - our lips are sealed!

Thanks for lots to ponder and, yes, it will be very interesting to see how it all comes out!

Y'know, it might be funny but it's real to them and me and, while I sense great sympathy along with gratitude that they aren't your clients, I am still hoping for some genuine suggestions here. I can be pretty creative at times but this can of worms is a bit much for me. If they weren't all such super nice folks, I would send them away but I am just certain, that with a little or lot of help from my friends here, solutions can be found. Let's think outside the box but within the regs, of course, and be sensible, too. I'm inclined to skip the tenant in OH for 3 months as basically a house sitter but do need to do something with her Berlin condo. For the OH house, it really is a 2018 issue so maybe I'll retire first . Thanks for whatever you might offer - really!

Want to trade for my German and Aussie clients?

Yep, tell me about it. A few years ago one came to me and suddenly I am the foreign tax expert and they keep coming. Being German (not the Aussie), they are incredibly organized and precise but also arty type folks so we often really don't speak the same language! The Aussie - she's a real problem child and not even in the country. She came to me last year never having filed since being in the country since 2011. So we caught her up as she was trying to get her green card and was worried not having filed could be a bad thing (ya think?). Some years were out of statute but filed fed and state anyway and she got back over $10,000. She loves me now.

I just haven't gotten around to changing the master for that box yet. I've changed several other things though. And yes, RITA is a royal pain in the RITA anyway and it irks me that it costs extra to efile it. Fortunately the few folks I have just take it to the local office where they prepare it for free. I encourage that because I really don't like it.

This is complicated so please bear with me. Couple from Germany (she a professor, he a house husband now) lived in KY, she worked in OH. Last year they bought a12 room house in OH needing major rehabbing done by husband. Two rooms were available in October and a third in November so another German professor moved in although house was not yet really ready. She needed a new place to live. Couple says KY house rented as of Jan. 1, 2018 to students. So they apparently became OH residents at that time (haven't changed driver's licenses, etc. yet). House in KY was bought with cash and husband rehabbed so basis is really low. Tenant of rooms in the OH house has been paying (by way of debt forgiveness of loan from couple) $650 per month. The value of the property changes almost monthly due to ongoing rehab. Getting a value as of October is a challenge at the least. Second professor (tenant of rooms in OH house) has a condo in Germany rented now by third professor (from Australia, but that's another story) waiting for her visa to be renewed. Condo owner charges tenant moving amount monthly depending on utilities and other factors. Also, the condo is legally owned by parents but she pays the mortgage (private loan from rich Swiss uncle) and all the bills. The value of the condo has doubled since owner first purchased it. She thinks market rate rental is fair at about $500 per month. So ideas on valuation of KY property (they haven't kept all the expenses put into the house)? Valuation for 2 then 3 rooms in a house not really ready for prime time inhabiting? Allocation of expenses? (I'm inclined to call this 'house sitting' or something since no money changed hands and for other reasons.) What about the condo in Berlin? Seems I have to report income but what about expenses that she pays but is not legally required to? My brain hurts. It's a good thing these are all super nice folks. Then the Australian has a house here in OH that she had to rent because she had to be out of the country for a year. Sheesh! I'll worry about that one tomorrow.

And now the box whether in the office or remotely prepared. What about clients that come into the office to drop off stuff but are not present when returns are prepared? Where's that box? And to efile Ohio, there is now a User Consent box: "By using a computer system and software to prepare and transmit my client's return electronically, I consent to the disclosure of all information pertaining to my use of the system and software to create my client's return and to the electronic transmission of my client's tax return to the Ohio Department of Taxation, as applicable by law." ARRRGGGGHHH