Spitzer Questions

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  • Koss
    Senior Member
    • Jul 2005
    • 2256

    #1

    Spitzer Questions

    Since one of the guys who manages the company that provided services to Spitzer is an Enrolled Agent, maybe he can tell us...

    (i) How do you expense breast implants? Are they fixtures that have to be depreciated? Or do they qualify for Section 179?

    (ii) What is the recovery period? And if they leak and are replaced, is that a disposition? Or do you just continue the original depreciation?

    (iii) What is the depreciable life span of sex toys?

    (iv) Where do you report income from blackmail? Line 21 or Schedule C?

    (v) Can Spitzer write down the value of his political career before talk radio officially declares it to be a worthless security?

    (vi) Can the value of goodwill be represented by a number in parentheses?

    Burton
    Last edited by Koss; 03-12-2008, 06:42 AM.
    Burton M. Koss
    koss@usakoss.net

    ____________________________________
    The map is not the territory...
    and the instruction book is not the process.
  • taxxcpa
    Senior Member
    • Nov 2007
    • 978

    #2
    Hillary Clinton's reaction

    Hillary Clinton has removed his endorsement from her web site. She was shocked to hear that a public official would cheat on his wife and cannot understand why Mrs. Spitzer puts up with it.

    Comment

    • thomtax
      Senior Member
      • Nov 2006
      • 1276

      #3
      Originally posted by Koss
      Since one of the guys who manages the company that provided services to Spitzer is an Enrolled Agent, maybe he can tell us...



      (ii) And if they leak and are replaced, is that a disposition? Or do you just continue the original depreciation?

      Burton
      Burton, would this not possibly be a casualty loss?

      LT
      Only in government or politics is a "cut in spending" really an increase. It's just not as much of an increase as they wanted it to be, therefore a "cut".

      Comment

      • bertrans
        Senior Member
        • May 2007
        • 198

        #4
        Originally posted by Koss
        Since one of the guys who manages the company that provided services to Spitzer is an Enrolled Agent, maybe he can tell us...

        (i) How do you expense breast implants? Are they fixtures that have to be depreciated? Or do they qualify for Section 179?

        (ii) What is the recovery period? And if they leak and are replaced, is that a disposition? Or do you just continue the original depreciation?

        (iii) What is the depreciable life span of sex toys?

        (iv) Where do you report income from blackmail? Line 21 or Schedule C?

        (v) Can Spitzer write down the value of his political career before talk radio officially declares it to be a worthless security?

        (vi) Can the value of goodwill be represented by a number in parentheses?

        Burton
        PROPOSED ANSWERS (SUBJECT TO CONFIRMATION BY PEER REVIEW BOARD):

        (i) breast implants are, clearly, improvements; hence, addition to basis.

        (ii) (See previous poster).

        (iii) The depreciable price of sex toys depends on the genus and species of the toy: e.g., a DOG sex toy would have a depreciable life of 7 dog years; horses,now,probably longer.

        (iv) For blackmail, I would opt for Sch C - the inference, there, being that there would be expenses. Note: The IRC does not provide for the deduction of any blackmail payments.

        (v) This would be preemptive 'writing down' - I see nothing in the Code forbidding this; i.e., the statute is silent on this matter.

        (vi) Only if the applicable schedule is prepared in no-Euclidean space.

        Thanks for the tingling questions! (Really - well done, Burton).

        Comment

        • taxmandan
          Senior Member
          • Oct 2005
          • 1037

          #5
          Originally posted by thomtax
          Burton, would this not possibly be a casualty loss?

          LT
          I don't think this qualifies, has to be sudden, unexpected or unusual. This was a long-time, repeated occurrance, and not all that unexpected or unusual for political celebrities.
          "A man that holds a cat by the tail learns something he can learn no other way." - Mark Twain

          Comment

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