NT / Excuse Me While I Vent

[Jesse]

Call the number and find out yourself before they come in even. Don't take their memories - only financially smart people seem to remember.

https://sa2.www4.irs.gov/irfof-mwp/start.do

JG - the site is up and working great!!!!!!

[oceanlovin'ea]

here's one on real estate taxes

New client came in today with her paperwork. She was in a few weeks ago with her daughter and came back today for her own appointment. That was 2 more new clients this year. YEA!!
She paid real estate taxes on her rental house on 2/02/10. I told her she could not take that as an expense for 2009. She would be able to use it in 2010. She just didn't understand. The tax preparer she has had for 10 years would take the amount that was due in November and put that as an expense for 2009 and then the rest of the amount she had to pay because she was late she would put on 2010. Can you believe it??????

I tried to explain that you can only deduct what you actually pay in the year. She couldn't get it through her head. So I finally used the medical example. If she had surgery and owed the doctor $5,000 and only paid him $1000 during the year, she could only deduct what she had paid....$1000. She finally got it. BUT she said the other lady always did it the other way. I just told her that IRS didn't allow that.

Ah, the joys of new clients.

PS: Rita, I LOVE your posts. They brighten my day and make me laugh. Keep em coming.

Linda

[Black Bart]

Nothing left to say

...Client says " I don't understand what you are saying because it is tax gobblygook and I don't understand so don't keep trying to explain it. Just pay the money and this is the end of the conversation"

At this point what else can I say to get them to understand?

except "Look, you gave me incorrect information, you got the money from Social Security, and you owe the tax. I'm not paying it and you can do whatever you think you need to do. Goodbye."

[RitaB]

I feel your pain

She paid real estate taxes on her rental house on 2/02/10. I told her she could not take that as an expense for 2009. She would be able to use it in 2010. She just didn't understand. The tax preparer she has had for 10 years would take the amount that was due in November and put that as an expense for 2009 and then the rest of the amount she had to pay because she was late she would put on 2010. Can you believe it??????

Yes, I get that look EVERYTIME I try to explain this. I will try your brilliant medical expense example. Thank you. And, the other preparer deducted penalties. How nice.

PS: Rita, I LOVE your posts. They brighten my day and make me laugh. Keep em coming.

Thank you. You are my BFF.