michaelmars

Just like the LLC fees, every year we miss a few, especially single members and never get a notice.

Wrong, i had a client audited for this. These audits are all done out of Washington DC, gifts of appreciated property. Funny is that my client donated a collection of rare items and the IRS agent told me that when he contacted Sotherbys, Smithsonian and I forget the third place, that they told them that my client is the leading expert to appraise these items. We did have an outside appraisal and they eventually accepted it with out too much back and forth.

so if mom bought it how did she inherit it from her husband a few years ago. This isn't the whole story. Client probably doesn't even know the whole story. After all my kids don't know how me and my wife juggle assets.

I can't agree with this. If you are too busy send them walking, but if you accept the client then you have to do right by them and if you lose them a 2014 refund they could have a claim against you. I had one of these and we got the returned filed 1 day before statute ran out and it was a 90k NY refund.

i am going to start using California as my go to foreign country.

Abby has the correct answer.

when did the title change to the beneficiaries? They might have to amend their returns and claim the depreciation. If you don't then the basis still has to be lowered by the depreciation that should have been taken. Sounds like the estate accountant really messed up. Was the house left to the beneficiaries or to a Trust for the benefit of the beneficiaries? there are a lot of questions to be answered before you jump on this return.

The preparer of the partnership does not determine the 754 step up, that comes from the preparer of the 706. It is the executor's responsibility to inform the partnership of the election amount. Remember a 754 can go up or down and also if real estate part of the step up needs to be allocated to land. I haven't used ATX since the 2012 issues but i recall at that time it sucked at keeping track of the step up and getting the program to just allocate that depreciation to the applicable partners. I strongly suggest an excel spreadsheet, especially if there are multiple 754's.

Actually this is pretty basic and has been required for a number of years now. There is a separate release for individuals and businesses.

did you receive a "no change"? if so you can get them stopped (usually)

NCCPAP is fighting this too and expects changes very soon.

sounds like a flipper and therefor the income is ordinary. Property is inventory as are the improvements

I just went through an audit and the agent actually told me that it was selected because of 3 years of losses. This client went into the business of selling high end homes 3 million and up on average. 2013-no income just expenses, 2014-small income since she was apprenticing and only got a small percentage of commission. Expenses exceeded income. 2015 was more income but still showed a net loss. What saved us from having to argue the hobby rule with the agent is, a] she understood the business and knows the local market and b] 2016 had nice commissions and 2017 had a few large ones too.

Why do you want to minimize depreciation, what is wrong with NOL's. If eventually he sells or has income the nol will go against his income at income tax rates. He will recapture the depr at capital gain rates. He is ahead by the spread. As many of you know, my practice has a lot or real estate professionals and many have negative income [which is probably why Trump doesn't want his returns released]. In fact, if not already done, when a client tells me he is selling a building or in contract I immediately have then get a cost seg study done. Often I filed the 3115 claiming extra depreciation in the same year as sale. The savings is basically 10% of the extra depreciation.

WITH all the POS systems at restaurants I am sure people will be tipping less.

Don't forget that this is the new due date for 1041's. [actually 10/2 this year.

Never heard of this, how would a title company know the gain? They don't have basis info and aren't accountants. I know NYS will withhold at the closing for NON-residents a flat percentage but I have never heard of an IRS payment withheld.

and my favorite comment, don't forget to allocate part of the step up to land!!!

actually I have a gun ffl store as a client and there are no employees, its a 1 man shop, mostly by appointment only. Very small inventory and he mostly does transfers or helps locate hard to find weapons. another that I frequently go to near my house is also a 1 man shop. he does gunsmithing, transfers and only sells older rifles.

the best reason is NO Payroll filings if you don't have employees. No quarterlies, no disability, no unemployment, no workers comp.

I don't let anyone use short forms in my office just for this sort of thing.

I would think that its a no brainer for many reasons. I would also have him try and get it to be a non-single member even if his wife gets 1% just to keep it off of his 1040. Even with Trump ending Operation Choke Point, gun stores still have a stigma to many people and I can envision a bank turning down the guy for a personal loan because of the schedule C on it. Of course I am in NY where guns is a 4 letter word. I would also have the LLC name being very innocent with a dba for the publics use. I had a relative who owned a medical marijuana dispensary and couldn't refi his personal residence. He changed the name and did as above and then he had no problem getting approved.

voodoo restaurant - nice steak house with a great view at top of hotel [forgot which] also has a zip line you can take down. roof top restaurant

above is not correct, NYC used 2 different forms. If the entity is a "C" corp it goes on NYC-2. If its an "S" corp it goes on NYC-L. Did you contact the IRS? I have had good experience with getting them to reclassify from a C to an S even if late. I know they have an automatic procedure for late elections but I think that's only for 1st year filers and you didn't say if that is the case with this client.

he must terminate the election. Assuming the property has a mortgage then he has basis to deduct loses in an LLC. Not so with an S corp. even if he personally guarantees it. also if he is in for the long haul eventually he will refi. with an llc he just puts it in his pocket. with an S corp it must stay in the corp or taxes are due.