OldJack

I have paper copies since 1973 for clients that are still clients. When no longer a client I destroy all copies after 10 years and record the date in a log. In the late 1980's I started also keeping tax returns on floppy disc. I now have 3 computers but no floppy disc drive to read the floppies. I now have pdf files on standard DVDs and wondering how long before I have to convert to Blue-Ray DVD format. My new computer has Blue-Ray. Computer storage is truly a temporary solution. Paper will last as long as I will and after that I could not give a damn.

I've never done it before, but I would think the deduction belongs on 1040 Sch-E, page 2. The next line after the partnership numbers. Thats the trouble with tax books, they tell you its deductible but never tell you how or where.

Also, don't forget the tax effect of single member LLC distributions on refi's.

We all tell our clients "never put real estate in a corporation". We are actually talking about never put real estate in a C-corp or an S-corp that might default to a C-corp if the owner doesn't run it like an S-corp keeping things straight with the rules. It is a myth that there is any tax difference when selling real estate in a S-corp (that has always been an S-corp) compared to selling real estate as proprietorship, partnership, or an individual. If its real estate used in business it goes on form 4797 and gain/loss flows with the same ending tax result to the 1040 in all cases. If its real estate held as investment it goes on Sch-D with the same result to the 1040.

Thanks BulldogTom and Kea for your remarks. The man is out on bail currently in another state so my daughter and her family are trying to put their life back together. They have the constent concern that he will suddenly return before the trial, but they have to continue with school and work. I live in another town and feel save and am back to work with tax season. An outside basis is just that. The partnership does not record anything, thus an outside tax basis. A simple outside tax basis example is that I purchase a partner's ownership direct from the partner for $10,000 when the partnership entity basis for that partner is only $1,000.

Not that I would recommend it but a partnership can hold S-Corp stock as a nominee for an eligible shareholder. [Reg 1.1361-1(e)(1)] Also, an S-corp (QSub status for each LLC) can be wholly owned by another S-corp (The LP electing S-Corp)[§1361( b )(3)( B )] [Reg. 1.1361-2, Reg. 1.1361-3]. Why not just have the individuals all own their share of each LLC? Keep it simple.

Its actually a step-up in basis only to the individual's outside basis unless there is a §754 election. Without the election the individual has a different outside basis than inside basis making things a little difficult to keep straight.

Well... I'm still confused. A LP (limited partnership) must have more than one partner. So if a limited partnership owns the LLC it is a multi-member LLC since the LLC is disregarded. When you used LP do you mean an LLC member that has limited liability?

Seems to me that Personal Injury Protection insurance is a liability insurance and not a medical insurance.

I see no need to file an estate tax return as basis for everything appears to have documentation for later tax purposes. I assume there have been no life time gifts in excess of annual exclusions, beneficiary of life insurance, retirement plan accounts, or other items that must be included in the estate assets.

I doubt a violation of the usury laws would negate the fact that the taxpayer has a deductible income tax loss. If it did why would a retail store theft loss be deductible.

A non-business bad debt (promissory note personal investment) would be deducted on 1040 Sch-D subject to the $3,000 net loss limitation and carryover.

She can't deduct real estate taxes or mortgage interest on a home she does not own. The estate could probably reimburse her if other beneficiaries did not object. Has the estate been open for several years as she indicated she has been paying taxes for several years?

Sounds like a non-business bad debt deductible only on 1040 Sch-D.

Depending upon how the accounting was done in the past, his basis may have actually been reduced as natural materials were removed from the land. I would expect that any so called improvements such as roads were fully expensed in the years expended.

The installment sale amount each year probably qualifies for capital gain treatment by way of form 4797 to Sch-D.

How would you file the return if it was not a shareholder loan. If the S-corp cannot pay the loan it just stays on the final return as a liability. The shareholder then has a loss to deduct on his 1040.

I would guess that the insurance agent is trying to say that the tax-free proceeds received by a LLC-Scorp would possibly be taxable when paid out to the spouse. I don't believe that would be true since it is tax-free to the LLC-Scorp and distributions of income are tax-free from a LLC-Scorp.

Thanks jasdlm.

Since all is under one roof the deprecition should be on square footage.

Thanks again to everyone. My family is now in a safe place where no one can find us. I don't have much access to internet here in a condo on a lake. No one seams to be around here in the winter. We understand the man has left the state last night so in a few days we will be back to normal. Again thanks to all for your comments.

Thanks everyone. Sorry, I sould not have put such a thing on the board. I got to go and move to another town today.

Well... I'll admit that when I posted the question I was not thinking very clear that day and I was trying to put out a tax return to a client while I was out of town in a hotel concerned for my safety. I don't normally tell things about myself on a message board, but I am protecting my daughter and grandchildren today from a man that is searching for us to kill us all. He just got out of jail from beating my daughter and holding a gun to her head. Yes, he pulled the trigger twice and she didn't know the gun was not loaded. There are a lot of sick people in this world today. Its difficult to think about taxes.

>> s-corps can be the SH in the new S corp. I<< Unless I misunderstand I do not believe you can. An S-corp cannot be a shareholder of a LLC that has elected to be taxed as a S-corp. That would terminate the LLC-Scorp status.

Yes.. it was just a simple question (my only one in years) and as a tax practicing CPA of 30+ years I do update courses every year. I guess if I ask a dumb question I deserve a dumb answer! Geezz Thanks to all that replied.