DANRVAN

Report the gross as income and the amount withheld as expense. For the amount withheld, issue 1099 NEC to contractor for his work.

Everything is zero, the entity no longer exist for tax purposes.

For tax purposes, the LLC designation is irrelevant. The business is changing from a partnership to a sole proprietor and will need a new EIN. Since the partnership has been dissolved for tax purposes, the assets (and liabilities) are considered transferred to the partners in a liquidating distribution. I wonder if lawyer understands that partnership ceased to exist the instant H transfers to W. I think it would be simpler to show the transfer of assets form H to W after distribution; rather than transfer of partnership interest immediately before dissolution. However, the net basis to W would be the same either way.

correct And most likely is 39 year property unless it can be proven otherwise per reg 1.856-10 (d): (2) Inherently permanent structure - (i) In general. The term inherently permanent structure means any permanently affixed building or other permanently affixed structure. Affixation may be to land or to another inherently permanent structure and may be by weight alone. If the affixation is reasonably expected to last indefinitely based on all the facts and circumstances, the affixation is considered permanent.

I was actually able to negotiate that one in my favor. Now if I could just get the seat to put itself down......

After 20 years of marriage I have come to realize that I am still a HIT;.............. Husband In Training...........

Did you check the boxes mentioned in the above post? It should then flow to 8582.

So you have two rental properties on Schedule E, one that was sold (A) and the other with a disallowed loss (B). On 4747 input did you specify the sale related to property A? On the Schedule E input sheet for A did you check the box that it was a complete disposition of a passive activity? Those steps should net the loss on B against the gain of A.

That is correct. The unrecaptured section 1250 is a capital gain which can be offset by capital losses, but taxed at a maximum ordinary rate of 25%.

But that doesn't really mean anything.

Personally, I would want some general verification (documented) before I put a $200,000 carryforward on a tax return; it could come back to bite you if disallowed. Catherine mentioned the possibility of a 33% drop in the market value, but it is also likely the previous preparer did not know the difference between an allowable loss and a partial gift. It should not be very difficult to document a significant drop in market value given the date of inheritance vs date of sale.

It is either classified as nonresidential real property (most likely); or falls under "Asset Class 15.0" which includes assets used in the construction industry with a 5 year depreciation life. Asset Class 15.0 would be a sure thing if the shed was portable and moved from job site to job site. Otherwise it could be argued that the structure is attached to the land by it own weight and for an indefinite time period. 15 year life would fall under Asset Class 00.3; Land Improvements which are also permanently attached to the land. The shed does not qualify as an improvement since it is a building with walls and a roof. A 20 year life is not appropriate under Asset Class 01.3; Farm Buildings. In that case I would use 5 year life under Asset Class 57.0 for assets used in "Distributive Trades and Services".

Yes, since they do not have a base period to meet the 25% test. Yes, Sept, Oct, or Nov year end. Is there a reason for choosing another year end date?

That raises a couple possibilities. (a) The house could have been overvalued by $200,000 or (b) The house was sold for less than FMV and the difference should have been reported as a gift.

1250 gains are treated differently than 1245 gains and not subject to depreciation recapture in year one of installment sale. 1250 is sort of a hybrid, taxed at a maximum capital gain rate of 25%, thanks to the strong lobby arm of the real estate industry.

Code section 1014(a).

They need sound legal advice; as well as tax advice.

She has a duty to file the final tax return and pay the taxes for the decedent; whether she files jointly or separately.

Not in every situation, it could be considered marital property for estate purposes (and divorce) depending on how the stocks were acquired, or where the source of funding to purchase them came from. For example, if he bought the stocks using money he earned while they were married it is considered marital property. In that situation wife has an ownership right.

You "step into the shoes" of the decedent for assets producing income in respect of the decedent, IRD. IRD includes such items as: installment notes receivable, IRA accounts,....... investments in annuities.

Parents gifted the contribution?

So that must mean he either contributed more than $6,000; or contributed up to $6,000 but his earnings were less than contributions? I am not following this part either for new grad note making a lot of money. So assume he did not earn $xxx,xxx and hit the income limitation.

I am not I am not following the sequence of events here at all Margaret. But I am almost certain the penalty applies only to earnings in the case of a Roth. $250 does not sound like 10% of earnings to me.

or date of disposal if within 6 month.

The TCJA eliminated NOL carrybacks and permitted NOLs to be carried forward indefinitely. The CARES Act changes those rules temporarily by permitting NOLs incurred in 2018, 2019, or 2020 to be carried back for five years to the earliest year first and suspending the 80% taxable income limitation through 2020. This is all spelled out in section 172. There are special rules for farming.