New client has moved to town, had a CPA previously do his taxes. He couldn't sell his home, so has rented it. He said his CPA told him that he didn't have to report the rent for 3 years while he's trying to sell it. Have I missed something? Could he possibly misunderstood? I told him he would have to report, but could still take the home tax break if he sold in 3 years. (excluding the depreciation taken on the rental) Am I right?
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I vote for you. -
Thanks, don't think I want to get into politics. A CPA (as you can tell I'm not one) wouldn't say that, would he? Could it have been a beautician or friend CPA?Comment
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I wouldn't put too much stock in the "A CPA told me" line. I'm constantly explaining the difference between an EA (which I am) and a CPA (which I'm not). Even people who have been with me for years will refer to me as "their CPA".In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de TocquevilleComment
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Quite possibly they only heard what they wanted to hear from the CPA. I do know a local CPA however that is notorious for advice like that. How he still has his license is a mystery to many.Comment
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