"THEY" are at it again!

[Possi]

My client got rid of a timeshare (at a cost of $8900) and the man who did the transaction actually wrote on a piece of paper for them "Section 1752 $3000 deduction ordinary income."

What the Heck??? He's got me chasin' bunnies again when I know full well he's ... well... full...

=(

[ChEAr$]

loss

My client got rid of a timeshare (at a cost of $8900) and the man who did the transaction actually wrote on a piece of paper for them "Section 1752 $3000 deduction ordinary income."

What the Heck??? He's got me chasin' bunnies again when I know full well he's ... well... full...

=(

And that fellow never heard of "substantial authority". grin
Much less, "more likely than not."

[Possi]

another kicker from "they"

He even wrote "Estimated Refund $2492"!!!!!!!

I wish I had his ..... well..... nevermind.........

[Jesse]

Interesting, I had someone in last week, didn't quote a code section but the sale price was "negotiated" as they would be able to save the difference on ther income taxes by claiming the loss.

[Possi]

were you chasin bunnies?

Or did you straight up tell them, no way? I should be more confident!

[Jesse]

I don't have time to chase bunnies - just told them no.

They should have known to ask before they sold, not after, if indeed that was what made the decision to sell or not.

When they bought the time share they were told all maintenance fees were deductible and weren't happy when I told them only the property taxes are deductible. This was several years ago and every year they bring in the statement with the maintenance fees because they think they should be able to deduct them.

It's one of those clients that don't want to understand. Even if they could deduct the maintenance fees they don't have enough deductions to itemize, but every year I need to print a schedule A so they can see their contributions and other deductions in black in white. The couple yeras that I didn't print the Schedule A they called me back and said you didn't take this and you forgot to take that. I try to explain, again, they just don't get it - or don't want to get it - so now I simply print out the schedule A and they are perfectly content.

[Possi]

I don't have time to chase bunnies - just told them no.

Even if they could deduct the maintenance fees they don't have enough deductions to itemize, but every year I need to print a schedule A so they can see their contributions and other deductions in black in white. The couple yeras that I didn't print the Schedule A they called me back and said you didn't take this and you forgot to take that. I try to explain, again, they just don't get it - or don't want to get it - so now I simply print out the schedule A and they are perfectly content.

Now, that's a great way to handle it. It will greatly reduce my "school" time spent on people who will never understand the concept.
Thanks, Jesse!

[JohnH]

I'll bet if you started charging them separately for a "Pro Forma" schedule A they would be more inclined to accept your judgement.

[Larmil]

I'll bet if you started charging them separately for a "Pro Forma" schedule A they would be more inclined to accept your judgement.

Some preparers do that (not me).

[Possi]

really...

I'll bet if you started charging them separately for a "Pro Forma" schedule A they would be more inclined to accept your judgement.

I bet they WOULD.... hahaha