wrong class life for depreciation

[veritas]

I don't like it very much when a client tries to influence me by using the argument that his other accountant did this or that. I really don't like it when they tell me what their barber, plumber or MSN said.

[Bees Knees]

What do you think about my landscaper? Is he a farmer or a businessman?

You mean a farmer is not a businessman?

TTB, page 5-27, "A taxpayer is in the business of farming if he or she cultivates, operates, or manages a farm for profit, either as owner or tenant. A farm includes stock, dairy, poultry, fish, fruit, and truck farms. It also includes plantations, ranches, ranges, and orchards."

I don't think landscapers fit any of those descriptions.

Also (and I'll leave you alone), do you have an opinion as to whether we should keep doin' it wrong if the client wants to go on like that? Isn't he saying "My first accountant was an accomplice in robbing the bank--now I want you to help me keep doing it."

Can he authorize us to do taxes incorrectly? How can he have any standing to do that?

No, your client cannot authorize you to do taxes incorrectly, unless you want to share the jail cell with him.

But incorrect depreciation is not wrong if it is not material. The IRS is not going to squabble over 5 or 7 year class lives, especially if the TB had the option to write the whole thing off under Section 179.

Picking 5 over 27.5 years for residential rental property WILL get you in trouble. You can't let that kind of error continue.

[Bill Clinton]

From the desk of Bill Clinton:

"A taxpayer is in the business of farming if he or she cultivates, operates, or manages a farm for profit...A farm includes...orchards."

Define "orchards."

[veritas]

Cigar plantation

[cpadan]

Try asset class 57.0 (per master depreciation guide) Includes assets used in personal and profession al service. 5 year GDS.