Max W

From past experience, I know Maryland pursues this tenaciously. Here is a guideline to what they look at, especially important is paragraph 3a. https://taxes.marylandtaxes.gov/Resource_Library/Tax_Publications/Administrative_Releases/Income_and_Estate_Tax_Releases/ar_it37.pdf

One way might be to file a paper return and attach form 982 along with a statement of assets and liabilities showing insolvency.

The $800 is call a Franchise Tax; the $900 is called a fee. Go figure!

As Tom suggests, it would be wise to file a CA POA. You will need one for each spouse. Be sure that the signature is handwritten. If it is any kind of electronic sig, it will be rejected. You won't get letters from the FTB, but they will notify you by email that a letter was sent to the client. You can then access it on line.

If your question is about 199A QBI, it doesn't matter as Cap Gains are not included in 199A. My concern would be the valuation. How does farmland increase in value nearly 4.5 times in 2 years? Was it rezoned for housing, commercial, industrial use? Did soething else happen that would affect the valuation?

This could be a trust set up to avoid SE tax.

All the income is California source income. It doesn't matter where he lived. So, he might as just well jile a regular 540 return. UNLESS, he hs tofile an IL return as well. Then he files a 540NR (non-resident). To avoid double taxation, the tax paid to IL gets credited on form S of the CA return. With a family of four andn $58K income he should not owe any tax.

I think these are great. Since there is no date in the text, I would make sure that in addition to being signed that they are also dated. In addition.I would add the Tax Year to which it applies. Otherwise, if a problem arises later, the client could claim it was for a different year.

Never trust what an attorney, stock broker, or RE agent says about taxes. Always verify!

Form 56 needs to be filed so executor can act as fiduciary.

If the account is closed, or there is insuffient money in it to make the payment, you do not have to do anything. Thr payment will not be triggered. Just make the payment on-line, or mail a check.

Doesn't 3115 only apply to open years? The closed years are not entirely without some relief as a de minimus deduction of $50K can be made under section 481(a)

Sometimes the client closes the account . That will generate a check, too.

I would apportion it to the entire 15 acres, because at the time the improvement was done it benefitted the entire property.

I don't think a 1099R will be issued as a rollover (Code G), because the rollover wasn't from one institution to another. Ir will have to be documented with the appropriate records. I went through this once with a client who had self prepared the return and got a CP2000, which was reversed when the documentation was presented.

That is bizarre. I assume they each have two functioning legs and a finger, or two, to walk up to your door and ring the bell!?!?! I guess you don't have a neon sign in the window - "OPEN".

Does Rocket Lawyer file the necessary forms with the CA Sec. of State? I have a client that decided to do an LLC themselves, last year, and once they got the EIN from the IRS, they thought that was all they had to do. So, it's going to be a partnership for 2018 and part of 2019.

Maybe from the Equifax hack?

OK. I see your post.

This is the way I would handle it. 1. Report the Rent as income on Sch E. 2. Then under Expenses, enter same amount as Offset to form 4797. After that you could provide an explanation on form 8275. However, if reporting the sale as Rent, is , on the 1099, std op procedure, 8275 shouldn't be needed. The IRM provides this on oil/gas leasing & sale. https://www.irs.gov/irm/part4/irm_04-041-001#idm139661998901968

Had the same thing 6 years ago. Had to wait 5 days in the hospital until pancreas cleared up. Then laparoscopic surgery to remove gall bladder. Lapro is great as it leaves no scars and there is no long recovery, as was home the next day. Hope yours goes as well as mine did. Good luck to you.

John thanks for the link. The article is similar to others I have read. Guidant claims an 80% success rate, but it makes me wonder if they are cherry picking their clients. I think the 50% success/failure rate probably includes businesses that were purchased as on-going concerns and the actual failure rate of start from scratch businesses is a lot higher. Restaurant and contractors have about a 95% 5 year failure rate. The scariest part is the IRS. There are quite a few pitfalls that can sink the entire investment. The IRS draws a good picture of this. https://www.irs.gov/retirement-plans/rollovers-as-business-start-ups-compliance-project Investing in one's new business is always a risk and ROBS is the only way to use retirement funds, without being taxed, and there are the risk takers and doers that are willing to do it .

Has anyone had any experience dealing with ROBS? What are the pros and cons?

Another wrinkle! The house is going to have a mortgage, which dad is paying. If son is on deed and dad dies, who is going to make the mortgage payments? Will the son become responsible for them. As you said, a "rat's nest".

The reality is that the father is buying the house and hiring the son as a contractor to make the improvements. Anything else complicates things and could lead to unforeseen consequences. What is the reason frothe father putting son on title? Is it because of age and the possibility he may not be around when the project is completed? That cn certanly be handled differently. Also, are the ongoing payments to the son in addition to the 50% the son will receive as his share of profits, or are they advance payments? f dad dies before the project is completed, how will the rest be financed?