OT: Not Fair

[geekgirldany]

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]

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.

[WhiteOleander]

The State Fair of Texas is open now in Dallas. Tell them if they want "fair" that's where they should go.

[taxea]

My response would have been "there is nothing in the IRM that says they have to be fair.

[Lion]

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

[JohnH]

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.

[taxea]

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"

[mscash]

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