Possi

BOOOOOya!

KILLIN ME! LOL LOL

HAHAHAHAHAHAAHA When I do get it right, I do the Dorito Dance. Every. Time.

Thanks for the affirmation!

Thanks for this link. I was looking for the code to use in Column F on the 8949 to disallow the loss on personal property. This is the sale of a second home. Can I simply enter the selling value and cost as the same? Or enter the actual loss with the code "L" that says "You have a nondeductible loss other than a loss indicated by code W..."

How precious is THAT?!! Love it!

If we are the gatekeepers to the IRfrikkinS, held to such high standards, required to question our clients under a spotlight and document it all, then we should be considered government employees. Complete that with declaring tax season an official "combat zone" with tax free income, and housing allowance all year. I truly do not know how we got to this place. Many IRS agents aren't in compliance on their own returns, and many owe a lot of money to the IRS. Many use that "I'm in with the IRS" line to cheat on returns. The IRS isn't policing any of them. They are using our registrations to police us. I love what I do. But the IRS and this government drives me to drink.

The client is a police officer and he knew all about looking up the property! LOL I could use HIM in my business! The other client with the black mold in the house is the one I will do next. He's coming up on the roster today. He has also been paying back for several years after he was forced to leave the property. The bank paid him about $3k to move out. I'm confident I'll set him free, too. He has been doing his own return. New to me.

Thanks for all your help on this!

No, he didn't get one. I asked him to do that but it's beyond him, I think. And time is ticking. Is the Zillow helpful in determining the value at all? It was practically given away when it finally sold. I'm sick to think he might have had to pay that back all those years ago. He was broke and broken. He still doesn't own anything.

On the foreclosure, he found the Zillow listing. 8-5-2008 it says it was sold for 206,000. That was his purchase. 9-27-2010 foreclosed to lender and price listed on Zillow was $211,690. Not sure if that was the debt cancelled or not. So, was that considered a gain? I just don't "get it." 5-6-2-11 was the next sale, and it was only 120,800.

My client in TX sent information on Hurricane relief. He doesn't itemize, so I was not even going to look because I knew it was not as much as the standard deduction, but something told me to exhaust all this knowledge he laid upon me. And look what I found: "Casualty and theft losses are generally deducted on Schedule A, Itemized Deductions, but, you may choose instead to increase your standard deduction by your qualified net hurricane disaster loss if you don’t itemize other deductions on Schedule A. See the instructions for more detail." I don't know what instructions they are talking about, but here is more... What do you think? It looks like I can boot the loss into the standard deduction and indicate "hurricane tax relief" at the top of the return. That tells me it will probably be a paper return. I hate messing with this right now with all these returns waiting, so I might file an extension. I found it here: https://www.irs.gov/individuals/tax-law-provisions-for-disaster-areas 2017 Act Casualty and Theft Loss Calculation and Instructions The casualty and theft loss deduction helps taxpayers who have unreimbursed losses. Ordinarily, taxpayers figure their deduction by starting with the amount their insurance doesn’t cover. Taxpayers must reduce each personal casualty or theft loss by $100 and then reduce their total personal casualty and theft losses by 10 percent of their adjusted gross income. Then, they may only deduct the part of the loss that exceeds these limits. However, if a taxpayer sustained losses due to Hurricanes Harvey, Irma or Maria, the 2017 Act provides a different calculation for many victims that allows a deduction for the entire portion of the disaster loss not covered by insurance that exceeds $500. Under the 2017 Act, losses qualifying for this relief include personal losses from flooding or other casualty, and losses from theft, that arose in the federally declared hurricane disaster areas announced before September 21, 2017, and that were caused by the hurricane. If your loss arose in Florida, Georgia, Texas, Puerto Rico or the U.S. Virgin Islands, your loss is subject to the $500 reduction and is not reduced based on your adjusted gross income. You must use $500 as the reduction when determining your qualified net hurricane disaster loss and indicate “hurricane tax relief” at the top of your tax return as outlined in the Form 4684 instructions. Casualty and theft losses are generally deducted on Schedule A, Itemized Deductions, but, you may choose instead to increase your standard deduction by your qualified net hurricane disaster loss if you don’t itemize other deductions on Schedule A. See the instructions for more detail. Note: This special calculation cannot be used to figure disaster losses in Louisiana and South Carolina. These losses must be deducted using the usual casualty and theft loss limits.

What is going on this year with these 1099B's? The reported basis is right up front, then in the back pages, we have "adjusted basis" that is not reported to IRS. The basis has been increased for different reasons, by the issuer. I'm looking at the 8949 codes for (f) adjustments, and I think "E" would be applicable here. "You received a Form 1099-B or 1099-S (or substitute statement) for a transaction and there are selling expenses or option premiums that aren't reflected on the form or statement by an adjustment to either the proceeds or basis shown" I have never seen this before and now I see 3!

Thanks, Judy! I searched and searched. I appreciate this.

When qualifying a parent as a dependent, discussing gross income, does the basis count against the sale of stock? I believe I am looking for "taxable" gross income, knowing certain income (Sch E and C, basically) cannot be reduced by expenses. Did I just answer my own question? 1099B stock sales will require Momma to file a return, but the net income was less than $400. DIV $597 and Cap Gains were $1631. So, am I correct to file a return for Momma and don't let her claim her own exemption, but let the kids claim her? They do support her. I don't know why this is so hard for me. I've been researching this! You'd think this was my first rodeo.

I'm getting the addresses and dates, and will try Zillow.

No, I didn't. Thanks, I didn't even think of that.

I will never be able to get that information. I bet a million that they don't even know how much they paid for the properties, either client. UGH Maybe they can come in pretty close.

Part III line 9 asks for the selling price of the home, insurance proceeds, or condemnation award and I have no clue what to enter. On the foreclosure, what would the "selling price" of the house be if it was foreclosed upon? This was in 2009 and he doesn't have any records of the foreclosure. I wasn't his tax preparer back then, so I have no records, either. And with the black mold, there isn't a selling price, either. The bank paid them to leave, but only $3500. Is that a "condemnation award?"

Another client just came in who lived in the house for 1 1/2 years before he got divorced. The house was eventually foreclosed on and he is still paying it back. I looked at the exceptions for him, but it is my understanding that since he didn't live there for 3 years, he has to keep paying it back. HE probably needed to pay it all upon foreclosure, so I'm going to research this "up to the profit" section and see what it says. I can't believe I have 2 of these.

Update: I just spoke to the client, and the house had black mold. The bank paid my client $3500 to move out. He doesn't know if the house was condemned or not in the end. This happened in 2013 and they have been doing their own taxes and paying this back all along.

My new client said it was a shame that he was still paying back the First Time Homeowner Credit since he hasn't lived in that house for 2 years. The house had mold so the bank bought it back from him, and they had to move. Doesn't this qualify as an exception to paying the loan back? I don't know that the house was "condemned" but it was a sick house and that was confirmed. If not, then they should have paid it all back the year it was SOLD, or "returned" to the bank, and that will be an issue! I think black mold will qualify them, but want to see what y'all think. I found this: Exceptions. The following are exceptions to the repayment rule for homes that were destroyed or sold through condemnation or under threat of condemnation. If the home is destroyed or you sell the home through condemnation or under threat of condemnation, you don't have to repay the credit if you purchase a new main home within 2 years of the event and you own and use it as your main home during the remainder of the 36-month period. Under this exception, you must purchase a new main home even if the 2-year period ends after the end of the 36-month period. Also, there is no holding period for the new main home if you purchase it after the end of the 36-month period.

Thanks, that's exactly where I was with it. I just could NOT find the rule. I really appreciate the post!

((((hugs))))

My client had a casualty loss in 2016 for a flood in his home. Total out of pocket loss was $19,258. Bottom line of the 4684 was a loss of $5615. In 2017, he converted this home to a rental property. Can the difference of 13,463 be capitalized and depreciated on the NOW-RENTAL property?