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    Rental Income

    Client rents out a home and we report the income and expenses. This year, he wrote himself a check for $5000 out of his rental acct for what he called personal income withdrawl. I've never heard anything like this before. Is that something he is going to have to report?

    Thanks for your help in advance.

    Tanya

    #2
    Rental account

    It's his money, why shouldn't he take it out? I'm assuming you are not suggesting it is a deduction...

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      #3
      No!!!!! I was thinking the same thing but he insisted I should list it as income on his return. What does he know?! He's an eye Dr not a tax person. LOL

      Thanks for your help

      Comment


        #4
        Originally posted by tsuewalker View Post
        No!!!!! I was thinking the same thing but he insisted I should list it as income on his return. What does he know?! He's an eye Dr not a tax person. LOL

        Thanks for your help
        obviously moving money from one bank account to another does not general income.

        Chris

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          #5
          Maybe he is okay with making donations to the IRS in the way of paying taxes on the income twice. This is why you are the preparer and he isn't. He is lucky he has you.
          Believe nothing you have not personally researched and verified.

          Comment


            #6
            He has already reported gross rents and deducted allowable expenses on Sche E. If he has money left over, he has paid taxes on any profit. Try to reason with him from that angle.

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