Gail in Virginia

In our area, the deer cross wherever they want to and just ignore the signs. I don't think they understand the pictogram.

Were the returns all self-prepared? is there any possibility of getting the depreciation records from a prior preparer? I would at least try the transcript route if you can't get the returns faster locally. But no matter what you do it sounds like the client is not going to be happy. Or maybe he will - he might be expecting to owe 80,000 without the sale of the rental and 70,000 sounds good.

I am not sure what the transcript shows as far as the sch. E. But if you calculate the depreciation that SHOULD have been taken each year, are you anywhere close to what was taken for the year's that you have information about? After all, it is deprecation allowed or allowable that you are looking for - so unless you think they might have taken too much depreciation, you could just use the calculation for what they should have taken. If they took the right amount, you are spot on. If they took too little, you are correct in taking allowable. You only have a possible issue if they have taken too much.

That could be similar to my husband's reaction when I get home before dark anytime from January through April.

The good kind of hugs, not the kind Rita sometimes give PITA clients.

I was hoping someone else would answer you, because I don't use ATX anymore and I am not sure what you are asking by line numbers. The only difference I am aware of is that Virginia is sticking to the 10% threshold instead of the 7.5%, and they allow LTC premiums even if you don't itemize so that sometimes there is an adjustment for that. Without knowing what lines 10 and 11 are, that is all I have. Maybe this will bump it up where someone with ATX can help you.

I could do two or three times as many tax returns if all the information was present when I pick up the folder to work on the return, and if people would quit calling to ask if their return is ready. Some days I want to scream at them that I told them I would call when it was ready, and I don't get paid until it is ready so I will call them as soon as I can. By the end of tax season I want everyone to just go away and leave me alone.

Why would he be MFS? He was single when he received the payment in 2017 (unless he was a qualifying widow/widower) and MFJ in 2016 - at no point was he MFS. Unless the executor of the estate decided not to file the final return for the wife as MFJ.

It sounds like it was paid to him from her account, so yes.

I went home last Monday feeling great - I completed 10 returns start to finish, and 5 of those were face to face. But that is a VERY unusual day, and when I say completed I don't mean that they were ready to hand back. Someone else in the office double checks them, scans the paper that came in with the return and makes the copies for the client. Most days, I don't get that many done all the way. Maybe 5 complete, 2 or three finished when they bring in the last piece of information , and a couple more started that need more information. If only they would bring me everything I need at once. I do feel better seeing that most of you aren't finishing 16 returns a day.

I haven't ordered yet - trying to find a spare 5 minutes. I just hope I don't lose track of this thread in the meantime!

Actually, it has been my experience that most certificates of insurance are requested by other contractors or customers who have employees because anyone they give a 1099 for non-employee compensation will be added to their workers' comp policy unless they can show they have insurance. That certainly would not be the case with E&O insurance. I would be suspicious that they are checking to see if you have deep enough pockets to be worth suing. But maybe I am overly suspicious.

Did your client get a 1099-C and/or 1099-A for the year of foreclosure? You might want to have him request IRS transcripts for those years to see if anything was reported to them as cancelled debt or foreclosure on mortgage if he doesn't have the paperwork.

Was a gift tax return filed in 2012? It should have been, and the basis should have been established at that time as the basis the mother had in the lot, assuming that it was less than the FMV in 2012. If so, the lesser of the mother's basis on the gift tax return or the FMV on the gift tax return should be the daughter's basis upon sale. Perhaps that is why the appraisal was done.

Our tax system was not designed or ever intended to be "fair." It is a progressive tax intended to tax the wealthy at higher rates (although with more loopholes) than the poor, and to accomplish certain social and economic goals that have nothing to do with taxation.

Judy, you are a super duper moderator EVERY week! You should have a permanent star!

This should be "cash in lieu" of fractional share. And when you sell something at a loss, such as a fractional share of stock, you still receive the check for the amount of the sale price. The loss comes from the basis that you have in the fractional share being in excess of the cash you received. I don't think that he received a negative check. And yes, it should go on the sch d and 8949.

I would think that the selling price would be the amount of debt that was cancelled in both cases, and yes the $3500 is probably a condemnation award. The tricky part will be finding out exactly how much debt was cancelled.

Actually, I believe under current law the wife would get 100% unless there are children are from a previous marriage. And I believe the value that requires probate is now $100,000. However, your other comments are spot on - especially the part about how the property is titled. Perhaps if you point out to the heir how much of the value of the farm might be lost to taxes if sold now as opposed to later, he will understand your point. Use actual dollar amounts as examples as well as telling him the percentages. But in the end, you can't control what they decide to do.

By any chance, is the reason the youngest won't use the funds because they are entering a military academy and don't need the money? Or have a tax-free scholarship? Because I think that allows them to withdraw and only pay tax, not penalty. Or if youngest is disabled, and that is why they won't be using the funds. Other than that, I got nothing.

If this is the same plan as last year, and last year it was taxable, I don't think that will have changed for this year. Is there any chance they got the forms and did not realize what they were to bring them to you? Or that they are supposed to go on-line and print them out? Or that they got lost in the mail?

I recently met with my broker, and he had me sign a form that I had not seen before. Basically, what this form does is designate someone that the broker can contact if he thinks that I am losing it and need help managing my affairs. Perhaps tax preparers need a form similar to this that we can have our clients tell us who to call when we think they have lost their minds. I don't know who will hold a form telling our clients who to call when they think we have lost our minds - or if they could tell since most of them have never met me when I wasn't on the crazy end of the spectrum.

What if she wins the lottery? Her 90 year old sister leaves all her millions to her the day before she passes away?

Perhaps they did the estate return to ensure that she was able to use the rest of his estate exclusion along with hers when her estate is settled (portability). I have heard that some firms do this as protection in case the surviving spouse gets rich and needs the extra exclusion.

Rita, I am pretty sure that someone who mistreated you would soon find themselves "hugged" and in the back 40. I can't wait to meet you in person in June.