My client told me the rental properties he inherited in CA would not show a profit. So a CA extension was not filed, a Federal extension was filed. We just met and although I don't have all the information I think he will show a profit. Is filing a CA return by June 15 significantly more advantagous than filing before Oct 15?
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Better late than never.... isn't that the truth!!
If he is showing a profit then yes.. June 15th is much more advantageous...
The Penalties and Interest will be lower!! Cross the T's and dot dot dot the i's.
Why does he say they would NOT show a profit?
What's different this year than others?
Do you have history on the properties (old returns from whomever he inherited from?)
Enjoy...
Happy Memorial Day Weekend Peeps.....
GOD BLESS THE USA
& those that protect us from
the insanity which includes Gov't!
Matthew Jones
Tax Preparation
Computer Consultant
Tax Season is here!
Make sure everything is working, extra ink or toner is available, Advil in top drawer!
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Ca
Kram,
Automatic 6-month extension in CA, so file regardless.
Add'l info: There should have been a payment sent in with an extension. Since you've done the calculation now and you find the CA return will show a balance due, there will be a penalty and some interest due, but most likely FTB will forgive this one time if a request for consideration is faxed to them showing a reasonable cause. In the request I would put something in like "...payment was not sent in with Form 3519 due to gross miscalulation of income vs expenses (you can elborate a bit more, if you think it will help your cause). We respectfully request a one-time abatement of all penalties...Thank you for your consideration in this matter." Give some contact info and you'll receive a call within 10 days or so.
Hope this helps.Comment
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? for DTS
I assume you are saying after getting the bill for penalty and interest to fax in a request for penalty abatement, correct?Comment
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CA notice
That is what I meant. You can include the account number that's on the notice on your correspondence you fax in to FTB or fax the notice itself. I would do the former.I assume you are saying after getting the bill for penalty and interest to fax in a request for penalty abatement, correct?Comment
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DYS, thanks
I appreciate the tips and will follow them.Comment
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Please do not forget the stepped up basis and the larger depreciation
Could be that you will have a loss, if the property had been held for many years and fully depreciated.Comment
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