like kind exchanges, real property using a qualified ... · qualified intermediary by margaret...
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LIKE KIND EXCHANGES, REAL PROPERTY USING A QUALIFIED INTERMEDIARY
BY MARGARET KEHOE, ENROLLED AGENTJackie Kincaid, EA, Program Chair
Many of the classes presented to Enrolled Agents deal with the theory of tax law but don’t actually give tools to translate the theory into a tax return.
Ms. Kehoe’s presentation will examine the HUD-1 statement. She will present a methodology for collecting the data from the HUD-1 and demonstrate how a worksheet will assist in the cal-culation for the data needed to prepare the Form 8824. Ms. Kehoe will lead us through the depre-ciation calculations including those calculations after the exchange. A case study will be presented which will provide a road map for future reference.
After attending this presentation by Margaret you will not only know the theory but also will be able to use the taxpayer’s data to complete an IRC 1031 exchange.
About the Speaker:
Margaret Kehoe began practice in 1990 and became an Enrolled Agent in 1999. She worked for H&R Block from 1990 to 1998 and received national recognition for her work on the Net Operating Loss textbook. She began writing and teaching intermediate and advanced tax classes under the auspices of the California Department of Consumer Affairs for Private Post-Secondary Education and continued until the program ended in 2007. From 1999 to 2006 she taught all four parts of the SEE and considers her greatest achievement and satisfaction the many students she taught and mentored to become Enrolled Agents. In 2002 she won the National Tax Challenge (NAEA, NTPI). In 2004 she was awarded the Channel Islands Chapter Enrolled Agent of the Year award. She served as the Chapter President in 2009-2010. She currently has a private practice in Oxnard, California.
“To Promote the Professionalism and the Growth of Our Members”America’s tax experts
CSEA Inland Empire Chapter July 2015
Thank you all for electing me president. I am honored. I will do my very best to serve the members of the Inland Empire Chapter.
I have great hope for the Chapter to expand its mem-bership; continue providing great educational opportuni-ties to its members; finding innovative ways to promote the Enrolled Agent designation; and providing professional and personal growth development opportunities to all our members. One of the best ways to grow, personally and professionally is by volunteering. It was only five years ago that I first volunteered to be editor of the Newsletter and look where it got me! We have some great opportunities for serving on the Chapter’s committees: Bylaws; Legislative; Membership; Newsletter; Program; Public Information & Awareness; Seminars, just to mention a few. Look in the July Newsletter or visit our website at www.ietaxpro.org for the Committee Chair of any committee and give him or her a call and volunteer, you will be glad you did!
The CSEA 39th Annual Meeting is in San Diego from July 15 – July 19, go to www.csea.org to learn more and register. I will there for the Presidents’ Orientation, and staying through the Board Meetings which begin Saturday, July 18 and end in the afternoon of Sunday, July 19th. Anyone can attend the Board Meetings; I encourage every member to attend. The Board Meetings are a great place to meet, talk and network with other Chapters’ members.
We have a great line up of speakers these upcoming months, be sure and look at the last page of the July Newsletter to see what is in store. Ms. Margaret Kehoe, EA will be the guest speaker July 8th; presenting techniques on 1031 Exchanges. You will not want to miss this one.
Our July 8th meeting is Patriotic theme; wear some-thing red, white, and blue to celebrate our Fourth of July. Remember to renew your NAEA and CSEA membership. See you at the July 8th dinner meeting.
PRESIDENT’S MESSAGE Gloria J Willams, EA,MBA, Inland Empire Chapter President
Tax Court ReviewsPaul Cheatham
In T.C. Memo. 2015-95 the issues are (1) did the petitioner convert a secondary residence into a rental property such that they are entitled to an ordinary loss on the sale of the property, and (2) whether they are liable for the accuracy-related penalty under section 6662(a). The respondent had determined deficiencies of $77,793 (2009) and $89,155 (2010). The accuracy related penalties were $15,559 and $17,831 respectively.
The petitioners purchased an oceanfront condo in an upscale Florida community (Hammock Dunes) in April, 2004 for $875,000. This property was purchased as a seasonal home and it was never their primary residence. The spent a considerable amount of time there with their daughter who passed away in 2006. After their daughter died they never stayed in the property again. In 2008 they decided to rent the property for the time being and sell it later, hopefully for a profit. Accordingly, they listed the property for rent with a local realty company and removed most of their personal belongings. Because of the realty company’s inabil-ity to find a tenant, they listed the property for sale with a different agent in June, 2009. The property sold for $725,000 in December, 2010.
Whether an individual converted his personal property to one held for the produc-tion of income is a question of fact that “depends on the purpose or intention of the individual, as gleaned from all of the facts and circumstances”. In the case of a converted residence, the Court often looks to five factors to determine the tax-payer’s intent: “(1) the length of time the house was occupied by the individual as his residence before placing it on the market for sale; (2) whether the individual permanently abandoned all further personal use of the house; (3) the character of the property (recreational or otherwise); (4) offers to rent; and (5) offers to sell.” (Grant v. Commissioner, 84 T.C. at 825; Newcombe v. Commissioner, 54 T.C. 1298, 1300-1302 (1970)). In finding for the respondent, the Court cited the substantial amount of personal use by the petitioners, the fact that the petitioners never provided the Court with a copy of the rental listing agreement, the peti-tioner’s minimal effort to rent the property, and a lack of evidence related to the real estate agent’s efforts to sell the property. The petitioners were also held to be liable for the accuracy-related penalty because they presented insufficient evidence to support a finding to the contrary. Reading between the lines it seems like the petitioner’s attorney should have prepared better for the trial.
2015-2016 Board of Directors
CSEA Inland Empire Chapter Committee Chairs 2015-2016AWARDSGerald D. Watson, EA 951/[email protected] RETENTIONKen Alvarado, EA909/[email protected] Bracher, EA909/[email protected] SEMINARSBarbara Robertson, EA909/[email protected] SERVICEKen Alvarado, EA909/[email protected] LaRue, EA909/[email protected] & BUDGET Paul Cheatham, EA909/[email protected] REVIEW Tammy G Carter, EA 951/845-2625 [email protected] Maria Lopez, EA951/[email protected]
LEGISLATIVE Joel Hendriks, EA909/[email protected] G Carter, EA 951/845-2625 [email protected] M. Martin, EA 909/[email protected] Jackie Kincaid, EA 951/204-4882 [email protected] INFO. & AWARENESSDon Stacy, EA 951/203-9021 [email protected] J Jipp, EA, USTCP800/[email protected] PLANNINGJackie Kincaid, EA 951/204-4882 [email protected] D. Watson, EA 951/[email protected]
PresidentGloria J Williams, EA951/928-6283gloriawilliams@ gloriawilliamsea.comFirst Vice PresidentJackie Kincaid, EA951/[email protected] Vice PresidentTammy G. Carter, EA951/845-2625 [email protected] A Sllers, EA909/915-1040 [email protected]
TreasurerSharon Elgersma, EA909/[email protected]
Immediate Past PresidentRon Uehle EA800/[email protected] Director(Two Year Term)Don Stacy, EA951/203-9021 [email protected]
CSEA RepresentativeJackie Kincaid, EA951/[email protected]
DirectorsConnie Bracher, EA909/[email protected] Cheatham, EA 909/[email protected] Hendriks, EA909/797-3140 [email protected] Jipp, EA, USTCP800/436-4199 [email protected] LaRue, EA909/874-5664 [email protected] Morgan, EA909/[email protected] Watson Jr, EA951/[email protected]
Quickfinder - New Delivery This Year
The Chapter will be giving FREE Quickfinders to members that attend 5 meetings from May-Dec 2015. Members attending 6 meetings during this same time frame will receive FREE also a Business Quickfinder.
For 2015, the books will be mailed directly to you from Quickfinder as they will not be ready in time for our December meeting.
The address and telephone number on file with CSEA will be the address Quickfinder will mailed to. IMPORTANT: if you do not have a correct mailing address on file with CSEA, your book/books will not be delivered. They will be mailed in early January.
If for some reason you can’t attend enough meetings to qualify for the free book/books or you would like to order extra for your office staff, I will be taking orders at the November and December meetings. The discounted price of the books for our chapter are
Quickfinder: $45.75
Business Quickfinder; $45.75
All-States Quickfinder: $70.75
RIA CA Tax: $70.75
CA Quickfinder is no longer being printed. If you have any questions, please do not hesitate to contact my office, Barbara Robertson (909) 466-7466.
Co-sponsored SeminarsBarbara Robertson, EA, Chair
REMINDER: WHEN SIGNING UP, YOU MUST PUT INLAND EMPIRE CHAPTER
IN THE REFERRAL LINE.
ClientWhys1040/ 540 Review & Update Seminar 2015
November 10 and 11, 2015 (Tuesday and Wednesday)
DoubleTree by Hilton Hotel Ontario - Airport
Check-In: 7:30 a.m.
Seminar Times: 8:00 a.m. to 4:00 p.m. both days
Lunch Break: 12:00 to 1:00 p.m. (lunch included both days)
Registration Information:
Phone: (909) 466-7466 or www.clientwhys.com
Up to 29 hours of CE plus a 2015 Big Book of Taxes/16 hours live presentation
A-Team speakers: Matt Brodie, CPA; Lee Reams. EA; and Art Wermer. J.D.
$350 prior to August 31, 2015
$370 after August 31, 2015
Our Chapter earns $25 for each member attending, so please put in INLAND EMPIRE CHAPTER as the endorsing organization.
Brass Tax Seminars - 2015TOOL BOX
Ontario, Wednesday, September 23, Radisson Ontario Airport
TUNEUP/UPDATE
San Bernardino, Wednesday, December 2, Double Tree San Bernardino
Ontario, Friday, December 18, Radisson Ontario Airport
Fees Early Bird $215 ends 7/31/15 for Toolbox
and 10/31/15 for Tuneup/Update.
Normal $230, At the Door $240
Registration fee includes Classroom materials and Lunch
CPE - 8 hours Federal. Registration 7:00 a.m. Workshop 8:00 a.m.
Our Chapter earns $25 for each member attending, so please put IEEA in Referred by line.
On-line Tax Help:Very Active Facebook Groups for Enrolled Agents: US Tax Pros; Tax Pros; Enrolled
Agents – The Tax Professionals.Linked In Groups: NAEA, and California
Society of Enrolled Agents
Wednesday, July 8, 2015 Chapter Meeting — 1031 Exchanges by Margaret Kehoe, EA 4:00 Board Meeting; 5:30 Social; 6:00 Dinner; 7:00 Program Menu: Cajun Butter Trip Tip
Chapter Meeting location: The Hotel San Bernardion (formerly The Hilton) 285 E. Hospitality Lane, San Bernardino, CA (at Waterman & 10 Fwy)
Wednesday, July 8, 2015 Chapter Meeting: Margaret Kehoe, EA: 1031 ExchangesTuesday, July 21, 2015 SEE Class Starts: Contact Don Stacy for locationWednesday, August 12, 2015 Chapter Meeting: Ms. Lynn Freer, EA: California UpdateWednesday, September 9, 2015 Chapter Meeting: Rodney Couts, EA: Basis BingoWednesday, September 23, 2015 Brass Tax - Tune Up/Update: Radisoon Ontario AirportWednesday, October 14, 2015 Chapter Meeting: Gary Quackenbush, ESQ: Deceased Clients
Due to Hotel Policy dinners will not be provided without prior reservations. Chapter Program cost is $42 for members ($47 for non-members and guests) for reservations made by 4 p.m. on Friday preceding the program.
Late reservations are $50 for members; $55 for non-members and can be made until 12 noon Wednesday of the day of the program. Walk-ins to the Chapter dinner is $55. RSVP to [email protected] or 909-467-5433.
We have a new secure credit card payment and online registration for events through 123signup. We accept Visa, MasterCard and Discover. We have opted out of American Express due to the higher cost for processing. You will receive a confirmation by email that you are registered.
You can still pay by check or cash at the door and this option is available through the online registration at www.ietaxpro.com
Chapter IdEA’s is published May-January by the Inland Empire Chapter, CSEA. Classified ads are free to members up to 35 words; for non-members the cost is $25. The Newsletter sub-scription is $15 per year. It is distributed free to members of the Chapter. Checks payable to CSEA; include your name, address, email, and phone number; send to Sharon Elgersma, EA; 2551 S. Euclid Ave., Ontario, CA 91762. Email [email protected] Board: Gloria J Williams, EA.
Inland Empire Chapter [email protected]
PO Box 1470Moreno Valley, CA 92553-1470
Return Service Requested
First Class Mail
Tuesday, November 10, 2015 ClientWhys Seminar: Double Tree by Hilton - Ontario Wednesday, November 11, 2015 ClientWhys Seminar: Double Tree by Hilton - OntarioWednesday, November 11, 2015 Chapter Meeting: Jeffrey B. Hahn, ESQ: Undisclosed Foreign Bank Accounts: How to CureWednesday, December 2, 2015 Brass Tax - Tune Up/Update: Double Tree San BernardinoWednesday, December 9, 2015 Chapter Meeting: Daniel W. Layton, ESQ: EthicsFriday, December 18, 2015 Brass Tax - Tune Up/Update: Radisoon Ontario Airport
To receive Chapter IdEA’s Newsletter by printCall Dave at 909-467-5433 or email
EARLY BIRD REGISTRATION for the 2013 Practitioner’s
Update Seminar ends DECEMBER 15, 2012.
Sign up today and save. See registration flyer in this newslette