tax help

ohiojim · Jan 27, 2016

saw the earlier post on land swap,...anyone in the know on taxes willing to help on sale of rentals ??? i sold 12 rentals that are located on 4 seperate plots. can i lump them together as one sale or do i have to file on each one,....these were sold as a whole and i hold the note, where would i enter the down payment,...i have been using turbo tax for last 10 yrs....thanks

LAA · Jan 27, 2016

The good news is in an installment sale you can spread your gain out over several years and if you have owned the properties more than one year prior to sale you will be taxed at the lower long term capital gains rate, reporting the whole transaction as one should not be a problem since you sold them as a unit and can presumedly show that you sold them at or above "fair market value" for your area as long as you can account for the basis of all of the properties together along with the associated purchase and sale costs. You report installment sale proceeds/gains on IRS form 6252 and on schedule D attached to your 1040. Your actual rate will depend on your tax bracket and whether or not you have depreciation to recapture, if the properties were bought at different times and over several years the depreciation recapture calculations could get tricky unless you have priced everything in the group individually or can get an appraisal on each property and assign an individual value, if you did not depreciate the properties individually in your prior years tax returns but depreciated as a group then it will simplify the process.

Dave H (MI) · Jan 27, 2016

Since this is bound to come up a lot in the next couple months, let me repeat something often stated by John T in prior years. If you are going to ask for legal or tax advice on a tractor forum, make sure the person responding is qualified to give you an answer. I'm sure you have heard his "Billy Bob and Bubba..." comment. You should really find a good local CPA to help you with this return. You will likely need help until the note is retired. The best advice you will get is face to face with someone who can ask you questions and see documents. My email is open if there are specific issues that are troubling you in the meantime. Dave H (MI), licensed CPA, 26 years in private practice.

LAA · Jan 27, 2016

I don't think he should take my advice, because I did not offer advice, just some information that I know to be correct. The intent was to give him a little something to think about and investigate. I am always amused at those who wish to shroud the tax code in mystery that only they can decipher when the truth is anyone who can read and makes the effort to stay current with the various rules that affect his or her own situation can navigate just fine.

Dave H (MI) · Jan 27, 2016

I once knew a guy who would post on forums information that he quickly gleaned from other websites just so that he could respond to the post. I guess he had nothing better to do and it made him feel important. You offered advice regarding how to file, what forms, depreciation, etc. You offered no credentials. I warned him to beware of just such a person. If you are a tax attorney, CPA, LPA or EA...accept my apologies.

I agree that people should have some knowledge of basic taxation. No one is shrouding anything in mystery, it is all on the internet for anyone to read. Understanding and interpreting it in various complex situations takes experience and education. That's all I was saying.

LAA · Jan 27, 2016

I am not a tax professional, I commented on this case because I also hold a note for rental properties sold a few years ago to my oldest Son and I fill out my own taxes. I have also done my own taxes for over 40 years concerning my employment and farming activities. You gave the poster prudent advice and I should have included a disclaimer that I was only offering information, not consultation.

FBH44 · Jan 27, 2016

If you found 4 or 5 old CPA's sitting around the coffee shop, would you rely on their advice how to replace Lift-All pump wear items in a 1945 Farmall M?

Andy Martin · Jan 27, 2016

(quoted from post at 17:32:44 01/27/16) If you found 4 or 5 old CPA's sitting around the coffee shop, would you rely on their advice how to replace Lift-All pump wear items in a 1945 Farmall M?

YES!!!!! If it's John T, Dave H (MI) and others we know here.

LAA is right, but a CPA will save money by showing you additional ways to save tax money. I'm not a dumb guy and I fought to do my taxes for years until I got into too many depreciable assets. First time to the CPA he saved his fee for that year on a house I had converted to a rental and then sold in the same year. I figured why depreciate it in the year of sale, and I was wrong.

Bret4207 · Jan 28, 2016

(quoted from post at 15:44:16 01/27/16) saw the earlier post on land swap,...anyone in the know on taxes willing to help on sale of rentals ??? i sold 12 rentals that are located on 4 seperate plots. can i lump them together as one sale or do i have to file on each one,....these were sold as a whole and i hold the note, where would i enter the down payment,...i have been using turbo tax for last 10 yrs....thanks

Do yourself a favor and find a GOOD professional tax preparer, or better, a GOOD CPA. You are probably missing several deductions or credits and things have to be done right or you can wind up in the can. A GOOD CPA will know how to do it right.

Geo-TH,In · Jan 28, 2016

I too have rentals, Seek professional help. If paper work isn't filed properly or you have a mistake, IRS will charge you a penalty plus interest. That alone will be more than the cost of a CPA. I like to think of myself as a DIY guy, with one exception TAXES. I went to college with my CPA. He's a very good CPA, not so handy doing other things. We make a good team.

tax help

ohiojim

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LAA

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Dave H (MI)

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LAA

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Dave H (MI)

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LAA

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FBH44

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Andy Martin

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Bret4207

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Geo-TH,In

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