Dissolution of farming operation

[barbara593]

Clients stopped very small farming operation 3 yrs ago. Their tax person continued to show marginal profit ( $1.00 to 100.00) and continued the depreciation on the barn and equipment. Most of the items listed were sold at least years ago. Clients state they were unaware of tax person continuing this and had told her they did not want to file Schedule F 3 yrs ago. How do I approach this issue. She did tell them that they could continue to depreciate the items originally listed. Is this correct and how can I resolve this this year. Can I just not file Schedule F?

[Jiggers]

Farming stopped

Clients stopped very small farming operation 3 yrs ago. Their tax person continued to show marginal profit ( $1.00 to 100.00) and continued the depreciation on the barn and equipment. Most of the items listed were sold at least years ago. Clients state they were unaware of tax person continuing this and had told her they did not want to file Schedule F 3 yrs ago. How do I approach this issue. She did tell them that they could continue to depreciate the items originally listed. Is this correct and how can I resolve this this year. Can I just not file Schedule F?

1. Doesn't your client look at the return before signing and mailing? Even if just signing the 8879 for e-filing, the taxpayer is responsible for the return.

2. You advise your client to amend the incorrect returns. There call.

3. If the assets were "sold at least years ago", was the sale reported?

4. You don't file a schedule F for 2009.

5. Where is the income coming from "to show marginal profit ( $1.00 to 100.00)"?

6. You don't continuing to depreciate assets when the business is discontinued.