Theater Company?

[superman]

Question ----- New client and they came in today was looking over old tax return and previous preparer took some wierd deductions after inquiring about these it came to light that he wrote off the cost of sports teams for the kids as a charitable donations because he told them that since they were a 501c(3) than it is a donation. My respose was NO but they wanted me to prove to them and I showed them the IRS pub on that.

The other important issue was kid is in a theater company and pays fees for being in there and classes on performing same as above as to the write off I do not agree but have not been able to find any information to show them on paper. My thought would maybe be only an education credit but I doubt this also. Any thoughts or publications so I can show them.

Last item was on tickets to the performances she said can write off the cost because it is a non profit I told her NO. She gets enjoyment out of the performance so not a charitable donations. This is correct right?

Man the messes people get themselves into because of Bad advise from someone else then when you tell them NO you are the bad guy. UGHHHHH!!

Thanks in advance for any guideance.

Superman

[erchess]

Bottom Line

You usually can't find a cite for "no deduction or credit". Just as an exercise imagine that a client tells you that they think there is a credit for people who eat cantaloupe. How will you show that there is not? For every deduction and every credit you need a cite showing you can take it. Tell these people they have had bad advice and they need to believe you, go back to previous preparer, or go to someone else. In my opinion you have already wasted more time on them than they are worth.

Of course education credits are only for education after high school. I might be caught claiming one for a very bright kid who has stopped attending regular school and been admitted to a post secondary institution without a high school diploma. But I surely don't have to tell you that no program which routinely enrolls students who are still in grade 12 or below and no student enrolled in grade 12 or below is eligible for education credits.

[superman]

Thanks

For the thought. It is what I thought just wanted a second opion. You are right I have spent to much time on this and there is some reason they left the previous preparer. I asked them but they gave me two different reasons within one hour so I think of course they are lying to me on that. Why do people always feel like they have cover there tracks and not give us the whole story maybe it is just like going to the Doctor and he ask do you exercise you respond yes of course everryday when you both know that is not true.

Just human nature I guess. Have a great day and thanks for the response.

Superman

[snowshine]

What, no cantelope credit? is this part of the marriage penalty?

[Henrij]

There may be a loupe hole!

[luke]

superman

be sure to get PAID before letting them have tax return - THATS why they left previous preparer - he was mean and made them PAY him?

[Gary2]

But I surely don't have to tell you that no program which routinely enrolls students who are still in grade 12 or below and no student enrolled in grade 12 or below is eligible for education credits.

But see examples 3 and 4 in the "Who is an Eligible Student" section for the AOC in Pub. 970. If the student enrolled in grade 12 in the spring time takes a college class, and enrolls in college in the fall, then that spring time college class counts for the AOC.