8915-F claim the balance this year

[Dusty2]

I had a client ask me if he can claim the balance of the money that was to be spread over 3 years all this year, year 2.

I read some on it but didn't find a answer.

Thanks for the help.

Dusty

[qbteachmt]

(edit) Possibly; if there has been a repayment, and you need to amend and take that repayment into consideration.

[IRonMaN]

When the 2020 return was filed, the client had an option to report it all in the current year or spread it over three years.  By picking the three year spread, he made an election to spread the income over three years.  I don't think you can change the election by simply reporting the full amount in year two.  Of course my research on this is zilch, so there might be something hidden to allow it, but evidently you weren't able to find that hidden jewel that says "yes".

[taxiowa]

You can pay the entire balance of tax on the 2008 homebuyers credit, so there is some precedent to paying tax early on an installment tax debt.  But I have not found the need to even look at the 8915-F yet to see if there is a change your mind tax line.  I ill when the forms comes out.  I have a couple that need it but are not worried about when it gets here so neither am I.

[TaxGuyBill · Accepted solution]

No, there is no option to pay it all in year two.  The amount is included "ratably" over the three years.

[qbteachmt]

I have edited and updated my reply. I was thinking about how it works when you make a repayment, and that can affect what you do for amending and for reporting the remainder.

As has been noted elsewhere and other times, the three-year spread is the default. Reporting it all in the year of the distribution is optional under an election.

And a death before the third year means reporting the remainder in that second year, the year of death; or all in the first year, the year of death.

[Dusty2]

Thanks everyone.  I appreciate the support.

Dusty

PS:  Now get back to work!!! ;>}