Possi

That's a great point. I'll have that discussion with him.

My client has an apartment building that was in the family, and he has owned and rented the apartments for many years. Last year, someone wanted to buy it, and he wanted to sell it. There is a family member who had some portion of ownership on the books, whom that nobody ever knew about, and they are unable to track her down to release the deed so client can sell. In the meantime, "buyer" pays client one rental fee annually of $6000 and another $6000 "toward the sale." Since client doesn't have the right to sell the property, I have left this as rental property and used all $12k as rental income. When he sells it, he can reduce the selling price as he wishes, if he wants to reduce it by the rent paid that was "toward the sale." He is not collecting any interest, there are no selling papers done, nothing in writing, because they can't track this chick down. I hope someone will tell me, "great job, you are right!" by not doing an installment sale.

I have a sale of a rental property that generated a $70k gain, and he is trying every way to Tuesday to reduce his tax liability. I told him that most of my clients call me when they sell a rental so we know what is coming. I'm not crying over it. But I am ready to give a hug...

My client and her sister inherited a cottage in Norway many years ago. They sold it last year and paid tax in Norway. I know this is a taxable event for her. The sale goes on Sch D. Then, the 1116 will reflect the net income from the sale and the foreign tax paid to Norway. I am filing an extension for her because it's too late for me to get her done before deadline. I haven't done a sale like this in all my 20 years. I'll hum a chant, burn some incense, and pray I do this right! hmmmmmmmmmm The good news is that with this sale, she also moved her Norway savings account to the US, so no more FinCEN.

Well, at least you will get paid BIG BUCKS for that return.... right??? I don't have any unpleasant clients anymore. Priced them right out of here. They paid me big and left. Whoever said money can't buy love lied. One person here, I won't mention any names *coughrita* says money can even RENT love!

Agree~ thanks!

Oh hold the phone.... this isn't a timeshare at all. She OWNS a condo. The CONDO group leases one of the condos to a worker. Everybody in the building gets a small piece of the pie. There isn't anything to depreciate, as she isn't exactly renting her own place at all. In all my years, I have never...Seems like this condo association is getting away with NOT filing a partnership! Instead, the send this letter to everyone saying they have to claim the rental income and "here are your expenses associated with it." Thanks, Pacun~

Yes, but she didn't use it at all for personal use.

My client came in new 2 years ago. She had timeshare income, say $700 and expenses of $550. The accountant before me put rental income on L21 and took expenses as an adjustment to income. I researched it because I didn't think that was right. https://www.redweek.com/resources/articles/tax-aspects-renting-timeshare I put the income and expenses on Sch E. This year, there is an assessment and it is suggested in the condo letter that it can be depreciated. This income is very inconsequential. Certainly not enough to stop everything going on here with 60 returns in the hole. But, my question is this; if she sells this, will there be depreciation recapture that I never took? I believe it is treated as personal property so depreciation is not a factor.

Her daughter told me she doesn't spend much time her because it's too cold! I thought the Social Security card and green card combination would be a winning ticket, but a circus it is! I'm not going to put her on the tax return. If she lived in Canada or Mexico, but not Guyana. She didn't spend enough time here to claim that she actually lives here. Case Closed.

7272

You saved me! Thank you. I'm writing to my clients to get that address right now.

I just emailed MD hoping for a response. Maybe someone on this board will have an answer before MD gets back to me. It's been 2 days waiting for a phone call.

This is tricky this year. In order to efile MD resident return, you must have a MD address. My 2 sisters (clients) are both military, MD residents, but stationed elsewhere. They do not have a MD address. The return will not efile this year without one. This is new this year. I called MD revenue, and the office suggested I use the last address where they lived. I told them I cannot put a stranger's address on my clients' tax returns. I actually said, "STRANGERS live there now!" Does anyone know how to trick the system? One sister is in TN and the other is in Japan.

Neither one died in January. It's so strange that neither spouse got SS statements for them. Both spouses do keep up with tax papers, too.

Military couple, he is MS and she is FL. I looked it up and he must remain a MS resident, but her income is not subject to MS tax. They must file MFJ for the MS return. I am filing MS as MFJ, and pulling her income off the return. Is it this simple?

That is exactly what I was thinking, too. I had never heard of purge fees. We will claim it as alimony. A court had to force him to pay it, but it's alimony all the same. Thanks for the validation.

Well, that's what I thought, that's how it's always been, but not this year. The first one I had, I just punched the number in and overstated it so he doesn't get a love letter. This second one, I will have to do the same thing. I'd rather overstate the income since both surviving spouses can't deal with tracking it down. Thanks

My client's ex went to jail for not paying spousal support. In order to get out of jail, he had to pay a "purge fee" to her. I would think this is considered back alimony and all taxable. What confuses me is that it is called a "purge fee" and I know alimony must be alimony. Does anyone agree that I should include this in her income? It's a sizable amount, worth asking. Not that the amount has anything to do with the question of law, just that it will change her tax picture.

I have had 2 dead spouses this year that did not get SSI statements. What is up with that? Shouldn't the surviving spouses have gotten a statement for the SS dead spouses got before they went to Heaven? This is a first for me, and it's happened twice in as many weeks. Sorry to start the morning off with this... but I was dying to ask.

CRYING..... Rita, you're welcome! Glad she moved to TN!!

Levy and all.... thanks.

Does anyone have experience with levy forgiveness? My client owed taxes 8 years ago, and will never have the money to pay it. He is working with the IRS who told him years ago, that if he kept his tax returns current for 10 years, they would forgive the debt. Does that mean they lift the levy on him, too?

All the blah blah blah is killing me, too. One whose husband went to jail for failing to pay spousal support... I need to know exactly how much money he actually PAID you in 2016. Pretty clear, right? After about 2 minutes of BBFB (blah blah frikkin blah) she said, "Donna, what would YOU do if you were me?" "Honestly? If someone was paying me taxable spousal support, I would know exactly how much he paid me, and I would give that number to my tax pro. Honestly, that's what I'd do." She finally shut up.

Sheep have very poor vision, but they always recognize the Shepherd by His voice. Just sayin' is all....