Takin' credit

[Black Bart]

Lordy, Lordy -- I'm startin' to feel like one of those New York Times reporters for takin' credit for somebody else's work.

After the $25K S-179 thread below, an electrical contractor called me this weekend about buying a $38K quad-cab pickup (he'd heard there was a $25K credit). I authoritatively (pompously, my wife claims) informed him that -- Yes, yes, while it was true the credit's ordinarily restricted to $25K; since he was buying a pickup with a 6 ft. bed which is inaccessible (I ain't mentionin' slider-windows) from the cab, he could write off the whole $38K and his problems would be over.

In awe of the depth and scope of my comprehensive tax knowledge, he lavished praise upon me; declaring that I was indeed "the man" as far as taxes are concerned. While forced to acknowledge that obvious fact, I attempted to maintain an attitude of reserved modesty (to the extent possible). Explaining to him that much time here at Black Bart Boondoggles, LLC is consumed with thorough and exhaustive tax code research, I advised him to hereinafter refer all deeper matters to me.

Amused by my half-hearted attempts to fend off compliments, my wife (a partner without a guaranteed salary) commented "Thorough research? Give me a break! You didn't even know for sure about the twenty-five thousand, much less the thirty-eight, until you asked those Taxbook guys and got the dope on it. Remember the college essays? Straight outta Britannica!"

[BOB W]

You did nothing wrong, we all get information from other sources and use it to our advantage, when possible. Great Job!

[DTS]

Bart...

After I have a couple of cocktails tonight, I'm going to show my wife your post and advise her to "never embarrass me in front of a client like this, ever!" I know you understand that a man's got to do what a man's got to do.

I should be back to my old self in no time and will see all of you soon!

Dennis

[Black Bart]

Hey Dennis -- How ya doin'?

After I have a couple of cocktails tonight,...

that sounds like a good idea.

...I'm going to show my wife your post and advise her to "never embarrass me in front of a client like this, ever!"...

Sorry, but I gave the wrong impression -- I didn't realize how it sounded. Actually I was on the phone to the guy and she didn't make those comments until after I'd hung up (I'd have...umm...well...I was going to say fired her...but that's not possible, so guess I'd have just been mad for a day or two).

...I know you understand that a man's got to do what a man's got to do...

Very true.

I should be back to my old self in no time and will see all of you soon!

Have you been off sick or gone somewhere? I haven't seen many of your posts lately. Also, what's happened to Sandy?

Regards, BB

[DTS]

Bart

Actually, my wife was in the office working and I read your "story" to her. We had a great laugh, as we always do. You always provide the necessary entertainment for all us on the board. Don't forget, never let the facts get in the way of a great story!

I've been around, just been so busy with so many different things. If you asked me to name them all, I'd find it hard to tell you what. A lot of personal, family issues, busy at the office, however, no $$, etc.

I have not talked to Sandy for about a week and a half. She's had company and still working on getting her move in place. She'll be back on the board shortly and will tell you all about it. Hang in there!

Again, thank you for the story!

Dennis

PS: My wife wanted me to tell you that, like your wife, she is NOT getting a guaranteed salary either. I just wish she'd quit complaining and finish her work.

[Black Bart]

Thanx Bob,

You did nothing wrong...Great Job!

I may need to quote you.

New problem though (maybe). The guy called back today and said "I forgot to mention I made $300K this year. Am I still gonna be okay? Is the truck enough?" All of which leads me to wonder if I may have oversold my "solution." Sales are usually only around $150K, but hopefully he's got enough expenses to offset the doubled income. If not, I may have to take an extended tour of the far reaches of the Ozarks. And If that $300K is net instead of gross (I didn't ask), I'll have to open a vein (his wife's take on all matters financial is similar to that of Josh's doc),

[S T]

I am here

Dennis knows most all about what is going on in my life. But Bart, it is so kind to ask about me.

I made a major move from the West Coast to the East Coast (Mayberry) in mid October, and after breaking down a home of 19 years and an office of 25+ years it was not easy. I finally have the home part pretty much organized, but the office part is still a disaster. And we are still adjusting!

I would recommend that no one, as in not any one, move their office! I should have retired, rather than make a major business move! I can not even begin to communicate the problems and issues that I have gone through, with new computer set ups, phone sevice, fax service, internet, and that does not even address the multitude of client files that I have accumulated. What an experience! Then the notifications to clients, which I have to say for now has been mostly positive. Then there is the change of address to all the vendors, software vendors (we know how they are, they always think we are stealing software - TB excluded (they were wonderful), and the list goes on!

Anyway, I will start posting again soon, but we have so many good posters now on this board, my research and links probably won't mean much. Will probably be more questions from me than answers.

TMI is my Tax Family and am so thankful for all of the parties that participate here.

Sandy

[Golden Rocket]

Perception Rules

In awe of the depth and scope of my comprehensive tax knowledge, he lavished praise upon me; declaring that I was indeed "the man" as far as taxes are concerned.

Absolutely Bart! "The man" in my town is a 19-year old guy working for one of the franchise tax offices. His $3000 error got through all the hoops, and one of his customers was the beneficiary of a huge refund. The customer was brother and uncle to a couple of my clients, and I lost them. They now go to "the man."

Don't be insulted. You did everything necessary to assure your contractor was entitled to his deduction. And you had the basic knowledge to conduct an intelligent conversation. Those of us who follow your posts know you're in a class by yourself, and MUCH more knowledgeable than you would have us sometimes believe. In contrast, the "hero" in my town did absolutely nothing except screw-up without bothering to check the obvious ('Scuse me - it's only obvious if you know enough). But I believe your point is well made: "Perception, not fact, rules the earth!"

It also pays to tell customers what they want to hear. If you had not been able to take off the $38K, he would be very likely to go across town and find the answer he wanted to hear. Then the other guy would be "the man."

A typical example is a spend-happy family who has been my customer for 15 years. They paid $45,000 for a house 20 years ago, put in a couple of nominal improvements, and have second-mortgaged the thing up to $150,000. They get a 1098 from three financial institutions, last year showing some $13,000 in interest. With home improvements, the most I could justify was $10,000.

"The man" (I refer to above) doesn't even know you can't deduct interest on amounts in excess of basis. Therefore, is there anything preventing him from entering the entire amount into his software? Even if he knows better, is he going to slow down long enough to ask?? The bottom-line difference to this family, including Ala. taxes, is $1200. As far as this family is concerned, who is the better tax preparer?

Will pending legislation help this situation? No, because "the man" is an employee of the franchised nationwide tax office and will be allowed to work under the E A of the owner. I do know the owner and she is VERY sharp. You will usually find at least one person in a tax shop environment who is knowledgeable.

This subject is VERY pervasive. On this board, we talk about "firing" clients when they want us to take unscrupulous positions, or want us to issue RALs, or do other things that are beneath our hallowed ethics that we discuss and that IRS expects us to maintain. I'm going to be very honest with all readers and say that at one point or another, I could have "fired" 80% of my clientele. I support lower taxes in grey areas, and do not turn over rocks looking for unreported income unless it is blatant.

We are ALL interested in either growing our business, or at a minimum, maintaining our clientele. One of the statements which has been discussed by the "fire your client" crowd is "if you lose them, you really are losing a bad customer so don't worry about it." And so we talk about the occasional loss of an unreasonable client here and there. But I think if we're honest with each other about a "real-life" tax preparation environment, we must push the envelope for our clients, because 80% of them WILL leave for a bigger refund, or for someone who tells them what they want to hear. This requires a "chicken factor" which bends the rules as far as we think we can. I will be honest enough to admit to this, although there some positions so blatantly wrong that even I can't support them.

The attitude that "we are right and have all the answers in all situations whether clients like them or not" is not realistic, and I would submit that precious few of us really operate that way.

Enjoyed your post, Bart, and hope you don't mind me "blowing off steam." Perception rules.