OT: Not Fair

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  • geekgirldany
    Senior Member
    • Jul 2005
    • 2359

    #1

    OT: Not Fair

    Person called today about preparing their return. Not a current client.

    Bought an house and did major improvements. After asking the questions, I heard "My brother lives there". I then asked about did he pay rent, how much was it, etc. No rent at all. I explain about the expenses not being deductible because there was no rental income.

    I got:

    That can not be right.

    It is not fair.

    I would not have done it if I knew I could not right off the expenses in one year.

    It is not fair... it is really not fair.

    I explained how to change the situation going forward. I kept getting the same answers. Finally just said:
    "I've read to you what the IRS website says, you need to get another accountants opinion if you will not take mine".

    That lead to:
    "I'll call back later".

    It is good to find out now instead of later how much a headache a client would be. I've got to the point where I can just tell how they are talking how it will be with them.
  • JohnH
    Senior Member
    • Apr 2007
    • 5339

    #2
    Maybe after speaking with you, they have learned enough to tell the next tax preparer they contact that the brother pays rent. But when they tell that person he pays $1 a year in rent, and get the explanation about FMV rent & related parties, there will be a whole new round of "it's not fair." At least you won't have to suffer through that conversation.
    "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

    Comment

    • WhiteOleander
      Senior Member
      • Jun 2005
      • 1370

      #3
      The State Fair of Texas is open now in Dallas. Tell them if they want "fair" that's where they should go.
      You have the right to remain silent. Anything you say will be misquoted, then used against you.

      Comment

      • taxea
        Senior Member
        • Nov 2005
        • 4292

        #4
        My response would have been "there is nothing in the IRM that says they have to be fair.
        Believe nothing you have not personally researched and verified.

        Comment

        • Lion
          Senior Member
          • Jun 2005
          • 4698

          #5
          I tell my complainers that It's not fair; it's the law.

          Comment

          • JohnH
            Senior Member
            • Apr 2007
            • 5339

            #6
            Originally posted by taxea
            My response would have been "there is nothing in the IRM that says they have to be fair.
            I'm not so sure about that. I believe the IRM requires them to be fair and impartial in how they apply the law. And as a general rule they are. But there are many things which are unfair about the laws they must apply. Whatever the case, not inclined to defend either the IRS or the laws.
            "The only function of economic forecasting is to make astrology look respectful" - John Kenneth Galbraith

            Comment

            • taxea
              Senior Member
              • Nov 2005
              • 4292

              #7
              Originally posted by JohnH
              I'm not so sure about that. I believe the IRM requires them to be fair and impartial in how they apply the law. And as a general rule they are. But there are many things which are unfair about the laws they must apply. Whatever the case, not inclined to defend either the IRS or the laws.
              Yes...in how they apply the law, but in several cases the law is what is thought to be "not fair"
              Believe nothing you have not personally researched and verified.

              Comment

              • mscash
                Member
                • Jan 2014
                • 37

                #8
                He can't deduct the depreciation and doesn't have to recapture it when he sells. It works out.

                Comment

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