DANRVAN

The 8283 attachment has been available in ATX for several years now, I was surprise 8453 would pop up.

In ATX you attach either 1098-C or a copy of the contemporaneous written acknowledgment directly to 8283. The input gives you a choice of check box for 1098-C received or check box for contemporaneous written acknowledgment. Not sure why 8453 would have popped up.

Kind of hard to tie this all together. He received a CP2000 and then under examination (audit)? If under audit should have received a 30 day letter before the 90 day letter. Should still be good if in fact a 90 day letter and clock is still ticking.

Tell him if it is mix use he will need a to keep a log of time spent on rental projects vs personal use as he would other listed property, like a car. Then you depreciate based on percent used for the rental. So probably not much in yearly tax savings. Also point out no section 121 if he ever decides to sell. Since most rental repairs are done on site, I can't imagine him doing much related to the rental in a workshop.

You still need to provide some more detail: -cash received -amount of loan paid off (70,000?) -exchange expenses You indicated $50,000 to fix up new property that came out of exchange funds. That was not part of the exchange, so it is treated as cash received, boot. Also the loan payoff is treated as boot. So at this point it looks like at least 120,000 in boot which is taxable gain.

Yes, since she is considered a nonresident and the income is considered non-source to Oregon per ORS 136.127. If she moves back to Oregon, it become taxable to her as a resident.

Does she pass this test? 1. You didn’t have a permanent residence in Oregon for yourself or your family during any part of the tax year, and 2. Your permanent residence was outside Oregon during the entire tax year, and 3. You spent less than 31 days in Oregon during the tax year.

That sums it up right there per 28OA(c)

In regards to residency, they are basically treated the same. From Oregon Pub 17 page 20, A. Special-case nonresident. You are treated as a “special-case” nonresident of Oregon if you are stationed outside of Oregon and all three of the following are true: 1. You didn’t have a permanent residence in Oregon for yourself or your family during any part of the tax year, and 2. Your permanent residence was outside Oregon during the entire tax year, and 3. You spent less than 31 days in Oregon during the tax year. And if that does not apply there is another exception: B. DFAS address outside of Oregon. You are treated as a nonresident of Oregon, no matter where you are stationed, if both of the following are true: 1. You are performing “active service,” as defined in 10 United States Code (U.S.C.) Section 101(d) (3), other than annual training duty or inactive duty training, and 2. You are a resident of another state according to DFAS payroll records. I question that. If she was from VA and stationed in Oregon, the VA based pension would not be an Oregon income source. I don't know about VA, but I think the concept of state sourced income is universal.

She would NOT be an Oregon resident if she meets the following per ORS 316.027: "• You don’t maintain a permanent residence in Oregon for yourself or your family during any part of the year, and • You maintain a permanent residence outside Oregon during the entire year, and • You spend less than 31 days of the year in Oregon." If she is a nonresident, those items are not taxable as Oregon source income unless they were attributable to: (a) The ownership or disposition of any interest in real or tangible personal property in Oregon; (b) A business, trade, profession or occupation carried on in Oregon. Also as a nonresident the inherited retirement income is not taxed by Oregon. See ORS 136.127 for details.

You cannot take any excess carryover for the deceased in the year of death, if that is what you are asking.

If sell price was 425,000, loan payoff 70,000, sell expense 30,000; then 425,000-70,000-30,000= 325,000 to exchange agent; instead of 361,000? Then 325,000 - 285,000 = 40,000 of cash to seller. Are we missing something here before we go further?

I would go ahead and e-file and see what comes forth, as Pacun and beckster have suggested it is likely a scam.

Agree that the instructions are not clear, but I would follow the joint occupancy rule and apply to MFS. In the case of fuel cells, the instructions specifically states that the joint occupancy rule does not apply to MFJ, so that leaves a door open for MFS. "Joint occupancy. If you occupied your home jointly with someone other than your spouse, each occupant must complete his or her own Form 5695. To figure the credit, the maximum qualifying costs that can be taken into account by all occupants for qualified fuel cell property costs is $1,667 for each one-half kilowatt of capacity of the property. The amount allocable to you for qualified fuel cell property costs is the lesser of: The amount you paid, or The maximum qualifying cost of the property multiplied by a fraction. The numerator is the amount you paid and the denominator is the total amount paid by you and all other occupants. These rules don't apply to married individuals filing a joint return."

Did he actually file 941, W-3...etc with his SS# and make deposits? I don't think they would be accepted without a valid EIN.

This is not clear to me, looks like more information is needed or clarified. Basis of property relinquished? Accumulated depreciation? Mortgage on old property? Selling expense? Mortgage on new property? Sold (exchanged) two properties for 425,000 and 285,000 for replacement?

If sell price equals appraisal, then yes, report $5,000 towards house. However, $19,000 still applies to the house, but recapture is limited to the gain, so excess does not matter.

While the focus of the article was on a business carried on by a married couple, it made reference to Regs. Sec. 301.7701-1(a)(2) which directly applies to the OP: " Similarly, mere co-ownership of property that is maintained, kept in repair, and rented or leased does not constitute a separate entity for federal tax purposes. For example, if an individual owner, or tenants in common, of farm property lease it to a farmer for a cash rental or a share of the crops, they do not necessarily create a separate entity for federal tax purposes."

Allocate the sale price of the house based on the appraisal.

Just caught that part. No 1065 needed.

There is not a checkbox that I am aware of for the 454(a) election. I recently used a blank election form with ATX. Also reported and backed out the income with a notation on form 1041.

Is the land actually owed by a separate legal entity; or is it jointly owned by the individuals who share the income and expenses in proportion to their ownership? If the land is jointly owned by the individuals, it is not considered a partnership unless the rental activity rises to the level of a trade or business.

It looks to me that by the time it got to you it was at least 3rd hand information, so hard to say exactly what "advice" was given by the CPA; and under what facts and circumstances the advice was given.

Section 121(b)(5)(C)(ii) provides a break to taxpayers that for whatever reason end up renting for a short time period after they move out. For example, a family moves away due to a job change, but with the possibility they might move back within three years.

Not if he remarried before the end of year.