It's okay. Okay. So, this is going to be the last bit of the presentation this year. Are you ready? Just start. You're late. Okay. Hello. My name is Eric Schruell. This is the issue of the repairman. We're going to take you through some open source edge. She says at scale. She says if you would be able to click her. What are we going to do today?  So, this is a little bit of a background of why this became an issue. We've all been in IT for a while. Let me start you with a little bit. Anybody here build a house? We've all run into architects. Okay. Looks really pretty. We have these really specific lines with the designing software. What he thinks when they design these things, this isn't going to come out exactly. I measured it to the center view or to the inch. What I'm going to do, right? It's very easy to send it to somebody and build it. But what you end up getting is different interpretations. And I know this is really crazy. Think about this. Someone built this. They did this. I'm not pointing fingers. But I mean, it's just crazy, right? You're like, how did you get this out of that? But I mean, how many people have done software architecture? I've done functional designs that I hand off. Sub-day or sub-part of a project to somebody. I'm like, how can you best this up? Friday they come back with something that I didn't ask for. Who hasn't seen that? So what we'd like to do is we'd like to take people that have done things really, really well and be able to expose it to them so that we can all build stuff like this. If you map this out correctly or at least give you some kind of insights, we're all smart enough. We've been long enough that we're able to come up with some kind of architectural designs and plans. But I'm just looking for the hints, the tips, and the tricks that people have added us. Tie this together and scale. It's just a big problem. How can we get this done? So what we did is we stepped back and we thought there are several problems in this space in the earth and organizations trying to share. Public references. They're hard to get along with. Often it's very light, fluffy inside. Really detailed stuff that we do when we go. We do a customer. Those are the things that we're interested in. That's sort of an information flood that you don't do on that. What we decided to do was to step back to customer research. Two to three is a certain use case or a topic. We can sit down and try to find three of these repositories that are open. That's the information that we have. I do not want to map exactly. What I want to do is find the common similarities. To narrify that, present that in a form that's edible for us to do something in our own. So, came up with a diagram tool. You can see a slide in the middle. There's going to be three different levels of diagramming plus architecture came later. It doesn't even have a diagram tool. It's just how do I talk to people that have no understanding of the stories that we put together behind this. It's so interesting. We used to enable the presentations around this. We tied together a short public-facing story. That's going on inside. The original targets were our special architects. Often looking for something like this that we would like to talk to someone. This is as close as I can get you to. That's kind of the point. As we do solution brings, we'll be together with the publications. So, solution bring is just a type of form of that. So, you get one or two pages. If we have any internal-facing demos, we'll tie those in. You can imagine these use cases are rather broad until they bring software. So, one demo is kind of hard to feed. You'll see stuff attached like that. The architecture, which is plenty of examples. See on the left there, a logical view. First thing you notice, this doesn't look like sequence diagrams. Toe gaffes. That is just a flood of information that requires an understanding of my side of the world. It's very complex. These things we decided to step back and say, hey, let's take three, four colors, see some branded icons, and some templated size and setups. Logically grouped. What I found in this article. Listen. You can complicate the story or simplify the story, and you should be able to demonstrate. These are much more specific. This is a schematic, a physical diagram. This is pretty much what we look at from, like, suggesting something on the front side. You're lucky like this, I actually numbered this one because it has to do a good one. That's a really fun one where you get these on the floor. Say I want to zoom down in on this thing. That's what this is. So imagine you're talking to some audience or something. Really want to zoom down in on anything. Sort of talking in detail of what's happening. In area high level stuff, who I talk to or talks to me. I'm trying to force you into my way of doing things. It's telling you how to do things. You start taking through a few of these. Any idea? Okay.  I want to make sure that we are setting that up. Why? Just based on what's driving them is some of the challenges they have. This is a change from anything and thanks to our work. And then if we summarize computing, all the hypotheticals come in. It's another iteration where data is going from edge side to edge side. So something really off in the oil and gas. Play. A very little thing of some sort. Cellular in the autonomous field. Versus future. That's not great for the legality of sending the data back. We're talking about a lot of data. There are engines. Engine can generate autonomous data and data. So all this data cannot be sent to the center. Some way of seeing what's important, what's not important in some processing of the edge, then there should be some things wise and right. A very good requirement. So the large number of euro of data in the global side can be sent to the out-of-country, out-of-Indian department. A lot of these requirements are financial, electrical, government data, proprietary data. And then finally is distribution. You can store and all of a sudden connect to the cloud. You still want the ecosystem that's functioning in the cloud. A lot of these needs are driving people to move to the edge. And people have, it's not any concept, right? People have been doing this. I think what's happening now is there is data computing on the edge and even for businesses are saying that they, I think that's what is important is where the edge should be. So edge is no simple edge. I mean the idea is that there are different tiers of edge. So for example, starting from the right-hand side and that's, you know, four of this circle of money right now is the center. As you roll out towards left, for telecommunications providers, their edge is instead of my COVID-19 and trying to put it in the city. And what's on that is the edge of that. It could be really hard, right? So we don't talk about them over here. You know, ours is over everywhere. That's the last one. And for its customers, their edge starts with factory or office. And then changes on what kind of business you want. The edge of the extreme left is devices of sensors that we spread all over. And just to make a point here, a lot of examples we see are for, you know, hopefully for, you know, our cell phones, our smart projects, our system, which are looking for the edge, but they are more important. Just because they can be able to decide not on the edge. So, this is how the example for edge we talked about when the edge would be different for different industries. And here you see that, you know, this is not something that will happen. They have been doing that. They are exaggerating why they are talking first. They did talk about, you know, how our cell phones are vendors and office agents. They are doing it by G. They are doing it against the platforms. They are doing it on an industrial scale because it's manufacturing. So, they will be talking about how do I do victimizing so that instead of being seen coming out, then my cell is coming out and I figure out something is going to happen in the window of maintenance and fix it. So, this is the same thing on energy side. So, oil and gas. There is a stationary of gas coming from on how oil and gas are meant to be. It's really for upstream to be able to manage and really decide if it's going to be here to remember as we look at different cell phones. It's up here to be just in the manufacturing, oil gas. One thing we want to remember is that how do we, like any other government want to extract out so that every implementation out. So, the common elements will cross over the season. So, in this case, we want common elements to be able to standard that from that extent irrespective of whether it's a health care or it's a health care. So, the idea here is very simple to, I think, sort of at the bottom of the data center is your which conference to be able to talk about that this will be of the oil and gas and the patient will be able to manage it in the same way you are managing it. So, these are the cooling, but we want a similar development in the talk of the tax reform. We have the same template that Eric talked about starting with an architecture slightly new, very high-level view. So, here we have a physical example of a task model that is a one of the biggest gas pipeline that gas-friendly stations from the distributed flow, one of the things that was They had to modify it, they had to do their own operations. They wanted to think, I have a service as an architecture, for real time, screen space, even legal automation, they wanted to do the same. So what they did is this was, they deployed a new edge, they were still not open to it, the work of edge location was still, it usually came from, and this was either using a cluster or through the building, they were doing, they were micro-services, deploying the cluster, they were doing it on the other side. That was an example, they were doing management, data, and one of their things was, if it needs more energy, that's not an element of their demand, I should be able to control the supply from where the supply used to be. It's a reminder that now I should be able to change my supply based on the virtual value of that. That is what we talked about. So on the right, you have your centralized practices, your data center, public cloud location, they have their spread across. And all of this is done on a common virtualization background. And they are running on a... On the story behind this, what you're looking at here is a very simple intro. This is a text here, something they got added about it, they said, why are the text aren't so important if we've got enough feedback? Let me jump up to the next example. This one is industry-med, and I think it's good in the audience and Japanese, it's a very different one. It's the same, and we have factory site, processing of data, we have a dashboard that shows what's happening on the factory. They have a data application that they put normally in the production data, and they have a computer, and then they have the data actually coming from sensor on the assembly floor. Data is coming in, and the data is sent back to the center processing, all of the events, what they're trying to drive with this, obviously. Data, real time. Inside of this data, you can pass, you know, do it in an automated manner, particularly in the state, and doing this, there's any update to the application from the center side, what is the update, this is the product, the factory, it's not a typical edge location, but it has a factory data, so it's fairly easy for this. We have line data server, that's connected to sensors, you have firewalls, connected data, all of the data, and then on the center side, you have all the document storage, data modeling. So when you see this, you think, oh my, what am I going to do with this? Everything he's talking about, so we're going to have an architectural center, you have to find it. Actually, there is, so if you're interested in how the object, how what's connected, there's many kinds of it, showing that the data is coming in, and there are a couple of things. How do you explain from edge side to the center side? The model is being updated, how does it get pushed to the repository, and then to the generator, how does it get pushed to the repository, and all of that stuff. It shows the end result. This one is medical diagnosis, what can I say, so there are many, so you have image processing happening on the edge side, like this case is possible, and you are taking more x-ray, and then you are taking more x-ray to the next thing, and then you are taking more x-ray, and you are taking more x-ray to the next thing, or if it's scheduled, it may not be possible. Thousands of these X-ray will be taken, there's time lag, even if the data is not in, the actual... And the use case behind this was a pneumonia detection, so one of those. This is where the developers are seeing. This is where the... What I've been noticing is that all of these sites, I mean, I've been talking to you so far, very common way of doing things, you have the satellite site that has common elements, then you have the X-site that is just that what kind of data you're purchasing varies from the X-site to the X-site. Then you have a satellite phone and you try to make a look for something to the browser. If this doesn't happen for the test provider, is that you are ready to make a name, they are upgrade, having a couple of viewers, that is both of them. It's a great message stand while they are going to get a new company, and you are running down an application, what wants to offer you? Sub-script 5G, they want to make a party strategy. Same with off-the-shelf server, have a layer of abstraction of software and then software applications running off in different environments. In this case, all these capabilities are software, so in the other product, they want to make a new company, they want to create a part, right? This is a program that will distribute your name, and then again, this is the all this traffic stadium, right? They serve these capabilities while they are operating these other software applications. This is the breakdown before you get any idea. It's actually getting the greatest experience, sometimes you may have to search for them, they are basically getting components from one of these software. For example, Verizon is an example there, they have to do a starting product, but still they are not able to do it, so they have got these three hours on the any changes and that's why the factory is down in three hours, so now what's happening is that they're great, but it's not very quick, it's on hold, right? The risk of algorithm is still bad, but they are not able to find this at that time moment. So it is the beginning of three hours.


Income tax 2021-2022, dispositions of business property. Get ready to get refunds to the max, diving into income tax 2021-2022. Most of this information can be found in publication 334, tax guide for small business tax year 2021. Income tax formula focused on line one, the income line, which would be supplemented by another schedule, basically an income statement, revenue and expenses, expenses basically being deductions, the net then flowing in to line one of the tax formula as well as page one of the 1040 that we see here. We would have the schedule C, the schedule C flowing into the schedule one, the schedule one, then flowing in to the first page of the form 1040 line number eight. Here is the schedule C, the profit or loss from business, basically an income statement. So now we got the dispositions of property. So this is another area that could be a little bit more confusing when you're doing the business taxes, because normally you just got the income statement, revenue and expenses, and getting down to that bottom line. But you might have some property that you have to deal with when we're thinking about property here. We're thinking about generally like depreciable type of assets now, which is one reason that's a little confusing is because the schedule C is just an income statement. And the full set of financials books would be a balance sheet and income statement. We don't see the balance sheet, but we still have to deal with those kind of depreciable type of assets, the property, plant and equipment that might go on the books as an asset. Even if you're under a cash method that is, if you purchase large pieces of things, even for cash, you can't just expense them in the current year, but rather have to put them on the books as an asset. Even though there is no balance sheet on the tax return for a schedule C sole proprietorship type of business, but there is a depreciation schedule, and then you basically depreciate those, and that's the expense that you're going to get on the tax return allocating then the cost of those larger assets over the useful life. That's the typical accounting concept, but under the tax code, they might accelerate it and do funny things to it. So if your small business don't have a lot of property plans and equipment, then not a problem, a lot more easy. But if you have a lot of property plans and equipment, large pieces of equipment that are needed in order to generate revenue, then you might be purchasing them, you might be selling them, you might have to put them on the books as a depreciable asset, and run a depreciation schedule in order to get the benefit of the cost in the form of depreciation expense. So if you dispose of business property, you may have a gain or loss that you report on your tax return. So if you dispose of the property, then you got to gain or loss that you got to deal with possibly, which is basically going to be the sales price minus the adjusted basis, which would basically be the cost minus, for example, the general deductions you already took in the form of depreciation, which can often be found in the tax software with depreciation schedules. However, in some cases, you may have a gain that is not taxable or loss that is not deductible. This chapter discusses whether you have a disposition, how to figure the gain or loss, and where to report the gain or loss. So we have publication 544, sale of other dispositions of assets. So if you've got more questions about that, you can look at that publication, publication 4797, sale of business property and schedule D, that's often where you report the capital gains form 1040. You can go to those areas as well for more information with regards to these types of sales. So what is a disposition of property? You might ask, a disposition of property includes the following transactions. You sell property for cash or other property. So obviously you're selling property, you get cash in exchange. That would be the normal kind of thing, but you might get other property in exchange. It's still a sale, still have to report it, still got income. Government still wants their share. You exchange property for other property. You receive money as a tenant for the cancellation of a lease. So now you get the money for the cancellation of the lease. You receive money for granting the exclusive use of a copyright through its life in a particular medium. You transfer property to satisfy a debt. You abandoned property. So even abandoning property in that instance, you're going to have to dispose of the property in some way, even though you kind of walked away from it. So that can be like a kind of confusing situation.  So again, the property has now been gone forcefully taken action, not really a voluntary action, but you have the same kind of disposition of property kind of situation that you got to deal with from a tax standpoint. Your property is damaged, destroyed or stolen, and you receive a property or money in payment. So you got damages, possibly insurance that you got back on the property or something like that. Once again, the property is gone. You got to take it off the depreciation schedule, but you might have got some money for, for example, insurance money. How do you record that? Your property is condemned or disposed of under the threat of condemnation and you receive property or money in payment. So they condemn it. So this building is an eyesore on our and you can. So now you got the same situation. You give property away. So if you give it away in some cases, then it's still kind of a disposition that took place. So you might have to have some recording. You got to take it off the books, at least as the property on the business side of things. So what do you do with that?  See publication 547. So you got that publication on the IRS website for details about other dispositions. See chapter one of publication 544 non taxable exchanges. So you might say, well, is I got to get rid of this property, but I want some other property. And is there any way I can do that without having a taxable exchange taking place? Because if I'm going to have a taxable component here, maybe I'll just keep the current property. The IRS wants to incentivize transactions. So you might have a non taxable exchange situation allowed. Certain exchanges of property are not taxable. This means any gain from the exchange is not recognized and you cannot deduct any loss. Your gain or loss will not be recognized until you sell or otherwise dispose of the property you receive. So this is a like kind exchange. A like kind exchange is the exchange of property for other like kind property is the most common type of non taxable exchange. To be a like kind exchange, the property traded and the property received must be both real property and business or investment property. Report the exchange of like kind property on form 8824 like kind exchanges for more information about like kind exchanges. You could see chapter one of publication 544 installment sale. So now we have an installment sale situation and installment sale is a sale of property where you receive at least one payment after the tax year of the sale. So now you made a sale, but it's a significant amount possibly, but you didn't get the money yet. You're going to get the money after that point in time. The problem there is you would think that you would record the sale at the point in time. The sale took place on an accrual basis. But if you did that and you didn't yet get the money, maybe you don't even have the money to pay the taxes for the sale of the property because you need the money to pay the taxes. So that's one reason they might have come up with like an installment kind of thing. So if you finance the buyer's purchase of your property instead of having the buyer get a loan or mortgage from a third party, you probably have an installment sale for more information about installment sales. You could see publication 537. So you go to 537 for more information about them. Sale of business. The sale of the business is usually not a sale of one asset. Instead, all the assets of the business are sold. So if you sold a business, you could structure the sale in like different ways. But one way, common way to structure the sale is you basically sell all the assets that are in the business. So now you got to deal with the tax consequences of that. Generally, when this occurs, each asset is treated as being sold separately for determining the treatment of the gain or loss. That could be a significant tax hurdle to jump over. It's a tall hurdle. You got to have strong legs if you want to clear that thing. Both the buyer and seller involved in the sale of the business must report to the IRS the allocation of the sale price among the business assets. Use form 859 for asset acquisition statement under section 1060 to provide this information. The buyer and seller should each attach form 859 for to their federal income tax return for the year in which the sale occurred. You could see publication 544 for more detail there. How do I figure a gain or loss? Table 31, how to figure the gain or loss? If your adjusted basis is more than the amount realized, then you have a loss. If the amount realized is more than the adjusted basis, you have a gain. Obviously, that seems somewhat straightforward. Basically, the adjusted basis is kind of like the adjusted cost. You can kind of think of it. So how much did you purchase the thing for whatever it is? If it was a tractor, how much did you purchase it for? One of the big adjustments to it to adjust the cost for the adjusted basis would be the amount of depreciation that you had taken over the life of it. Because you already got the benefit of the depreciation taking it as a deduction. Therefore, when you sell the thing, you have to have it at the adjusted basis. So you might think of it from an accounting terminology, kind of like the book value, but it's on a tax-adjusted basis type of thing. Instead of the accrual book value, because you could have differences in the accounting methods for depreciation on a tax and book basis. But note that the higher the basis, the better, generally. Because when you sell the thing, then you're going to have less of a gain because you're talking sales price minus the adjusted basis. So that means obviously as depreciation happens, your adjusted basis goes down because you're consuming some of that tax benefit getting the deduction at that point in time. Therefore, when you sell it, if you sell it for a gain, then you could have a larger gain that basically takes place. That's the general idea. So, adjusted basis, amount realized, fair value, and amount recognized are defined next. So you go into those terms in a little bit more depth. You need to know these definitions to figure your gain or loss. So what's the basis? The cost or purchase price of property is usually its basis for figuring the gain or loss from its sale or other dispositions. However, if you acquire the property by gift, by inheritance, or in some way other than buying it, you must use a basis other than its cost. More information about basis is you can see publication 554. So obviously the cost would be the starting point there, but what if someone gifted you the property? Then you've got a question of, okay, what basis am I going to use? It's not going to be zero because you didn't pay anything for it. Do I go back to the basis of the person who gave it to me and so on? Inherent and same kind of thing. Issue there is that you might have had something take place in terms of an estate tax and so on. So what happens to the basis is that the fair market value possibly of the point in time that you receive it at that point. So you dive into those more detail. Adjusted basis. The adjusted basis of property is your original cost of other basis plus certain additions and minus certain deductions such as depreciation and casualty losses. So the depreciation being the allocation of the cost which you're getting the benefit from therefore reduces your adjusted basis, which means that you're more likely to have a gain at the point in time of the sale gains being bad for taxes because you owe taxes on it possibly. And determining gain or loss to costs of transferring property to a new owner such as selling expenses are added to the adjusted basis. So if it costs you money to sell the thing that could increase your adjusted basis, which would be good. Which makes sense because your adjusted basis would be higher because you had the cost of the expenses of making the sale happen. And therefore your gain would be lower gains being bad. So that would be good that you get to include those expenses. And so so that's how that works. How to figure a gain or loss amount realized the amount you realize from a disposition is the total of all money you receive plus the fair market value of all property or services you receive. So when you sell something usually you sell it for like money, pretty straightforward. If not possibly a loan, then that's still kind of like income or you could get basically some kind of change value of other property which you have to value then as well to see how much you got. The amount you realize also includes any of your liabilities that were assumed by the buyer and any liabilities to which the property you transferred is subject such as real estate taxes or mortgage. So when you deal with the liabilities that are going to be involved as well, then you got to take in those into considerations. Those become more or oftentimes being most complex when you deal with transactions on real estate transactions. So fair market value fair market value is the price at which the property would change hands between a buyer and seller, neither having neither having to buy or sell and both having reasonable knowledge of all necessary facts. Well that's clear as can be. But wait a second. How could you figure that sometimes right that's that makes perfect sense.  So in theory that makes perfect sense but how do you actually get to that number, you might have to get an appraisal, you got to do some kind of estimate for, for example, in order to justify your valuation. So amount recognized, your gain or loss realized from a disposition of property is usually a recognized gain or loss for tax purposes. Recognized gains must be included in gross income, recognized losses or deductible from gross income. However, a gain or loss realized from certain exchange of property is not recognized. You can see non taxable exchanges earlier. Also, you cannot deduct a loss from the disposition of property held for personal use. So when you're selling property, we're basically talking about property that was used for business to get the to get the deduction.  But if it's not, then like that's a personal piece of property. And if you lost money on the sale, then you don't get a deduction for that. So is my gain or loss ordinary or capital? So now we got this, why does that matter if it's ordinary or capital? Because you typically get a benefit for the capital in terms of the tax rates. So we would like to categorize it as capital usually as opposed to ordinary. So it's a big deal. The deal is large is a large deal. So we got to talk about it. So you must classify your gains and losses as either ordinary or capital gains or losses. You must do this to figure your net capital gains or losses. Generally, you will have a capital gain or loss if you dispose of a capital asset. For the most part, everything you own and use for personal purposes is investment in a capital asset. Certain property you use in your business is not a capital asset. So that would be generally not good, right? Because then you'd be at the subject to the ordinary income. A gain or loss from a disposition of this property is an ordinary gain or loss. That's generally bad because that's a higher progressive tax rate for the ordinary income as opposed to the capital gains and loss. However, if you held the property longer than one year, you may be able to treat the gain or loss as a capital gain or loss. That would typically be good because you might be subject to slower rates than the ordinary rates. These gains and losses are called section 1231 gains and losses. So for more information about ordinary capital gains and losses, see chapter 2 and 3 of publication 544. Is my capital gain or loss short term or long term? This is going to be important as well because you could have different tax treatment between short and long term. Long term typically better because you might be subject to favorable tax rates for long term capital gains. Short term capital gains might not be as good because those will possibly be subject to the ordinary income rates. So if you have a capital gain or loss, you must determine whether it is long term or short term. Whether a gain or loss is long term, short term depends on how long you own the property before you dispose of it. The time you own property before disposing of it is called the holding period. So how long did you hold on to it for? So for more information about short term and long term capital gains and losses, you can see chapter 4 of publication 544. So basically the general rule, if you held the property one year or less, then you have a short term capital gain or loss. If you held to the property more than a year, then you have a long term capital gain and loss. Long term better typically for taxes because possibly lower rates than the ordinary income tax rates. So where do I report gains and losses, you might ask. Report gains and losses from the following dispositions on the form indicated. The instructions for the forms explain how to fill them out. So you got dispositions of business property and depreciable property. For that you use form 4797. If you have taxable gain, you may also have to use schedule D. That's usually where you have the capital gains from like stocks and whatnot. That's on the form 1040, like a kind exchange. If you have a like kind exchange, it's like kind, you know. It's like a kind exchange. So like kind exchange. Use form 824, like kind exchange. You may also have to use form 4797, schedule D, form 1040. Then we have the installment sale. For the installment sale, use form 6252, installment sale income. You may also have to use form 4797 and schedule D, form 1040. Casualties and theft, use form 4684, casualty and theft. You may also have to use form 4797, condemned property. Use form 4797. You may also have to use schedule D, form 1040.