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Recent 1231 Property questions

In the first year of receiving a K-1 From a MLP, can you add

In the first year of receiving a K-1 From a MLP, can you add nonrecourse liability (box K) to your basis?JA: The Accountant will know how to help. Please tell me more so we can help you best.Customer: the info is provided above. what more do you need?JA: Anything else I can tell the Accountant before I connect you two?Customer: No. it's a general questionJA: I'm sending you to a secure page on JustAnswer so you can place the $5 fully refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and connect you two.

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Robin D.

Vocational, Technical or Trade School

21,226 satisfied customers
I have a tax question, I am not sure which section the sale

Hi I have a tax question, I am not sure which section the sale of land would fall into, example of what I mean by section; section 1231 , 1250 etc. Thank you

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,772 satisfied customers
This is a Tax question. I am a US citizen. I have the

Hello,This is a Tax question.I am a US citizen. I have the possibility of receiving income from the sale of a property in Poland.This property was owned by an uncle of mine who died in the war and let it to my father who was also in the war.After the war ended and then coming to the US (1946) my father pursued this property.There was a court case in Poland i 1948/49 where my father was declared the legal heir.When attempting to put this in his name the communists in Poland said... Hey we need this building for government purposes. My fathers attorneys persisted but never got the building returned.My father died in 1978. Never mentioned this to me... ever. He left everything to my mother who passed in Nov 2015.My more transfered her rights to the building to me i 2010.Now, good news, After working for return with several Polish lawyers we are at the doorstep of it being returned.A major developer has made an offer to take over the returneffort. He will pay me "option" money at signing and every quarter until the return is complete. He will pay ALL expenses except for my own (they come out of the option money) and he is depositing the purchase amount into a US ESCROW company in their Poland office.My question is tax related. When a Holocaust property is returned, the basis for taxes is... the value on the day of return. So, no taxes. However, the option money is where my question is. Do I declare the option money as income or as part of the value /basis of the returned property?Note: IRS publication 525 and IRS Manual - 21.6.6 Specific Claims and Other Issues have references specific to this area.Thank you,Steven

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

17,772 satisfied customers
My name is ***** ***** and I have questions about 4797. I

Customer: My name is ***** ***** and I have questions about 4797. I developed a vineyard which started out as land and I added a well, building, grape vines, etc... Do I place the "Vineyard" in Part I item 2 and use the depreciation i had on the vines, building, etc... in column e? Or do I need to list the buidling, vines, well, etc... all as seperate items? JA: Thanks. Can you give me any more details about your issue? Customer: Yes, Bought land in 2008. Added a well in 2009 (in which i claimed a 179 0n and had to recapure some of it because I sold in 2014). Also added a building in 2009 (also in which I claimed 179 and had to recapture). My first question is do i combin land, building, vines, well, etc... as one line in Part I and put all of depriciation over the years of each in columnn e? JA: OK got it. Last thing — Tax Professionals generally expect a deposit of about $32 to help with your type of question (you only pay if satisfied). Now I'm going to take you to a page to place a secure deposit with JustAnswer. Don't worry, this chat is saved. After that, we will finish helping you.

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Anne

Master Tax Preparer

3,138 satisfied customers
If I sell a residential rental property at a loss, is the

If I sell a residential rental property at a loss, is the loss fully deductible against my other income or is it limited by the 25000 passive loss limitation?

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Robin D.

Vocational, Technical or Trade School

21,226 satisfied customers
I sold some of the minerals on my ranch and turned around and

I sold some of the minerals on my ranch and turned around and bought more ranch land and a small amount of minerals elsewhere. I did not get a 1099. Do I have to turn the entire amount of the sale on my income tax?

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Mark D

Master's Degree

930 satisfied customers
I am trying to calculate a rental property tax basis

I am trying to calculate a rental property tax basis for depreciation purposes. Could you please confirm my assumptions/calculations or advise me if this is incorrect.1. A single family residence was bought by a married couple in 1997 for $275,000. The value of the land at the time was $96,600.2. Over the years the couple went through a divorce and the husband bought the wife's share for $229,000. The value of the land at the time of the buyout was $283,000. At the time of the payoff the house was valued at $795,000. In other words, the land's value is 36% of the payoff amount.3. The house was placed into service and now serves as a rental property.Here is how I accounted for the house basis:$137,500 (Half of the original purchase price of the house, since the husband owned half of the house at the time it was initially bought) – 48,000 (half of the value of the land, the husband's portion of the land) + 229,000 (the wife's payoff) – $82,440 (0.36*229,000,the value of the land at the time of the payoff).Thus, the tax basis is $236,060.Please note that this calculation omits any additional and improvements, or losses.Are my assumptions correct?Also, if a rental house if later sold, I assume that the taxpayer will have be able to claim the asset as section 1231. Am I correct?

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

4,230 satisfied customers
. I have rental properties that I used depreciation and

Hello. I have rental properties that I used depreciation and expenses to offset rental income. But I cannot use all of it and have been carrying forward unused depreciation. When I sell the properties, can I deduct that unused depreciation from regular earned income.

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Robin D.

Vocational, Technical or Trade School

21,226 satisfied customers
A couple purchased building lots for $44000 in northern WI

A couple purchased building lots for $44000 in northern WI in 2008. There intent when purchasing could be considered two-fold, either as a future building site, or as investment property to be re-sold at a profit as land values were escalating at thattime. In my research I think it is much more advantageous to the taxpayer to be considered investment property. In April of 2013, the husband died. Because of financial difficulties the wife was unable to make the payments and the land went back to the bankin March of 2014. She received a 1099-A from the bank with the following info: box 1) date of lenders acquisition or knowledge of abandonment: 3/07/2014 box 2) balance of principal outstanding: $35643 box 4) fair market value of property: $13000 box 5) wasborrower personally liable: yes box 6: description of property: lots 9 & 10 Rockwood estates After much research in irs Publ 544, Publ 4681 and jk lasers 'Your Income Tax', I feel the reporting is a two step process. Using the worksheet provided in Publ 544and the info provided on the 1099-A, the difference between the amount of debt cancelled ($35643) and FMV of the property ($13000) is reported as ordinary income on line 21. The loss is computed by taking the FMV ($13000) and subtracting the basis, in thiscase the original cost ($44000), for a loss of -31000, reported on form 4797 as an ordinary loss. Your thoughts?

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Robin D.

Vocational, Technical or Trade School

21,226 satisfied customers
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