Gail in Virginia

A belated :bday:

A belated :bday:

A belated :bday:

A belated :bday:

A belated :bday:

A belated :bday:

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:bday:

Virginia repealed estate taxes effective for those who died on or after July 1, 2007. Federal law would, I think, control basis in any event since Virginia, with a few exceptions, tends to follow federal law for tax matters. The IRS has a question and answer page about estates during 2010, and the following information is there: How do I calculate the basis of a decedent’s assets who died in 2010? Generally, for the estates of decedents dying after December 31, 2009 and before January 1, 2011, the basis of assets acquired from the decedent is the lesser of the decedent's adjusted basis (carryover basis) or the fair market value of the property on the date of the decedent's death. However, there are two exceptions to this general rule: * The executor can allocate up to $1.3 million (increased by unused losses and loss carryovers) ($60,000 in the case of a decedent nonresident not a citizen of the United States, but with no loss or loss carryover increase) to increase the basis of assets; and * The executor can also allocate an additional amount, up to $3 million, to increase the basis of assets passing to a surviving spouse, either outright or in a Qualified Terminable Interest Property (“QTIP”) trust. The link for that site is IRS Site

I have a client who has cancellation of debt income for their S-Corporation. They have depreciable assets that still have basis left, so I would like to reduce their basis in those tax attributes to eliminate the cancellation of debt income from their reportable income. How do I show this on ATX? I would like to keep the assets listed so that if and when they are sold I know that the basis is zero.

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That one in five would also include those who use a paid preparer that does not sign the return, I would think. We have quite a few of those in the area I live in who either buy TurboTax or use the IRS' FreeFile system to file tax returns for all their friends and neighbors. They don't sign the returns, and won't be affected by the new regulations because they still won't be signing the returns. I wonder if this won't cause some of those who do sign the returns to continue filing returns but to quit signing them rather than paying all of the fees and having to take a competency test and continuing education.

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I have also used e-mail support with sometimes less than satisfactory results. I like to email problems because I feel like it is a more efficient use of my time - I do the email when I have the problem, and move on to something else while waiting for an answer instead of being on hold and keeping the problem in front of me to be ready when they answer. I would think that it would be more efficient for ATX as well, but perhaps I am mistaken. However, there does seem to be a problem with information stated in the email being overlooked, and with turn around time for any followup question. And since the information overlooked is most likely going to lead to a followup question, this situation only gets worse and encourages us to telephone so that we can get our followup/clarification all done at the same time. I have wondered if email support is outsourced. They tried that with phone support, and it was so unpopular that it was discontinued. Email support could be outsourced and we would probably never know. :dunno:

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