Residual Business Costs

[rfk]

I have a client (was self employed physician) who closed his business for all intents and purposes in TY 2007. Now working as W-2 employee physician. For TY 2008 reporting, he is giving me two "left-over" expenses, $519.14 (uncollected medical fees, Medi-Cal, still waiting) and $841.06, LOC finance charge for business.

So I am wondering if these charges should really be considered as deductions, since, again, for all intents and purposes, he is no longer active in the business. How do I address this situation?

Thank you for your help.

rfk

[AZ-Tax]

Well........

[QUOTE=rfk;78133]I have a client (was self employed physician) who closed his business for all intents and purposes in TY 2007. Now working as W-2 employee physician. For TY 2008 reporting, he is giving me two "left-over" expenses, $519.14 (uncollected medical fees, Medi-Cal, still waiting) and $841.06, LOC finance charge for business.

That $519.14 is tough one since he is still waiting on it. Was that $519 included in his 2007 gross? The LOC finance charge if paid in 2007, I would think its probable to amend 2007 and include it but for that little amt, is it feasible.

Hope that helps