lost deposit of new business-where to deduct

[jenin98]

I am an sole propieter physician. Last year, I was to acquire a docor's practice, and I signed a letter of intent, and put down 15,000 as deposit to purchase the business. as the months passed, the doc changed the terms of the contract, and I coould not go through with it, so I backed off the deal, and lost 15,000(non refundable).
I received a 1099 misc from the work I did for him for 5 months. I would go there, see my new patients at his practice, working my way to acquire the business, but again, it never went through.
I spend some money on a lawyer to see if I could get my money back, but it is not worth it, long shot really, and it will be agonizing for me.
Can I write this 15000 off somewhere?
IRS told me to use sch D, but I not so sure about that. I was thinking section 165 maybe? not sure.
Jenin

[Black Bart]

I'm not sure either, Doc.

I am an sole propieter physician. Last year...I...lost 15,000(non refundable)...Can I write this 15000 off somewhere...section 165 maybe? not sure.

Maybe try a section eight; but in any case, your plea for a freebie is just about the last straw. Upscale tightwads have been flogging this board all season requesting pro bono assistance and labeling unenthusiastic response (a reluctance to cut one's own throat) as a surprising, deplorable lack of community spirit.

So...I'm going to give you advice equivalent to that which one of your colleagues recently gave for my wife's eye condition ("put hot compresses on it") and it's this: Borrow a Sam's Club card (dues are $35 a year, so I assume you aren't a member) and get a Turbo Tax box for $39.95. Then, just fill in the blanks -- accuracy (of calculations) is guaranteed. If you're short of cash, start saving. Have the nurse put aside the first 30 seconds of tomorrow's first patient's fee -- that ought to cover it.

If that doesn't "cure" you, then maybe go to plan B (next trip I'm asking the opthalmologist if maybe he should try some "real" medicine) and pay a professional to prepare your tax return.

[Bees Knees]

Sorry jenin98,

... but you have Googled a message board frequented by tax professionals. The sponsors of this message board provide it as a free service to their customers and the general public in an attempt to get people to purchase their product. TheTaxBook is a publication primarily written and designed for tax professionals.

We as an industry are currently under assault from several directions. First, the government has imposed new restrictions and penalties on us making our job more difficult to service our customers. The Internal Revenue Code is approaching 2 millions words, and corresponding government regulations have exceeded 8 million words. Yet our customers squawk when we try to charge an extra $40 to enter 10 pages of Schedule D transactions because they think they want to be a day trader.

At the same time, we are under assault from the Turbo Tax empire, who give you a box for $39.95, ask you a bunch of questions, and out pops a tax return guaranteed to be more accurate than any CPA prepared return, according to some news sources.

What does this mean?

You did nothing wrong. This message board is free and open to any and all who stumble across its path, and you have a right to ask questions. Many on this board, however, resent giving free advice to someone who can afford to have their return properly prepared by one of us. If you wait long enough, however, you may find someone on this board willing to give you the answer...if you can trust that it is accurate....

[Black Bart]

Amen, Bees.

And thank you very much.

[gkaiseril]

I am an sole propieter physician. Last year, I was to acquire a docor's practice, and I signed a letter of intent, and put down 15,000 as deposit to purchase the business. as the months passed, the doc changed the terms of the contract, and I coould not go through with it, so I backed off the deal, and lost 15,000(non refundable).
I received a 1099 misc from the work I did for him for 5 months. I would go there, see my new patients at his practice, working my way to acquire the business, but again, it never went through.
I spend some money on a lawyer to see if I could get my money back, but it is not worth it, long shot really, and it will be agonizing for me.
Can I write this 15000 off somewhere?
IRS told me to use sch D, but I not so sure about that. I was thinking section 165 maybe? not sure.
Jenin

As noted this a board for tax professionals to discuss their questions and help each other. Are you going to provide free assistance to us in your professional service?

[Black Bart]

Just

want to see if the doc's gonna check back in with us (or if he/she has managed to raise $39.95 yet).

[veritas]

Commercial on TV

BB to client in phone call while BB is rushing between emergency tax preparation appointments.

BB- You need to enter the private activity bond interest on line 11 of form 6251. Also add back any equity interest for non aquisition debt on line 4 of form 6251.

Client-Uh, isn't this something you should do?


Call Back Bart "The Tax Doctor"

[myerstaxes]

You all are a Hoot!!

I am up efiling and decided to check in here...Drinking some lemonade that I almost spit out on my spanking brand new puter (puter is what grandson used to call a computer)...Anyway, carry on...I understand where you all are coming from...I had someone want to stiff me for my fees (tons of money, I saw almost 1mil in rollovers from various retirement accounts) they argued over my fees, I settled for less to get them the heck out! Been bothering me every since via email with little questions...Funny thing is, they started with the "BOX" and gave up and called me...
Maybe this Doc, will figure out he is in over his head...LOL

[Bees Knees]

BB to client in phone call while BB is rushing between emergency tax preparation appointments.

BB- You need to enter the private activity bond interest on line 11 of form 6251. Also add back any equity interest for non aquisition debt on line 4 of form 6251.

Client-Uh, isn't this something you should do?

I was thinking someone should do a new TV drama based on the back room of a tax office. Instead of calling the show ER, we could call it BR (tax prep back room)

The show would be based on a group of first year tax helpers fresh out of HRB school who went to work for a CPA firm instead of Block. The frantic atmosphere of cranking out tax returns for their demanding CPA bosses; trying to do complicated returns Block never prepared them for; calling clients when there is missing info and having the rich hoity-toiti client snub them because they will only converse with “his/her CPA;” having to deal with the irritable second year “supervisor” whose responsible for training the new recruits on proper procedures for using a new computer paperless office system nobody can figure out except the nerd with the thick glasses; and of course the office romance in-between all the commotion between the young blond and the middle aged CPA who is going through a divorce.

BB, maybe you could write our pilot episode.

[fliszt]

Hoax?

I can't believe a physician (a licensed one) would post this type of question. In fact I can't believe a physician could even find TTB or any other one. I'll bet this "person" is sitting in the chair having a laugh at OUR expense. This just makes me want to change my answer on Bee's poll to keep this board private. I'd be willing to pay some $100 to be on a private board as this one. (Bees, don't get any ideas now). There are other boards that are free for individuals to ask questions in the event Turbo isn't clear to them, so why not save some (insert adjective here) for us and go private.(rhetorical question. I'm venting)

[Peachie]

I would do just as IRS suggests

Is there a reason you don't believe the advice you received? Try it, you might like it :-).

IRS told me to use sch D, but I not so sure about that. I was thinking section 165 maybe? not sure.
Jenin

[Bees Knees]

I don't think it is a hoax. About 10 years ago, I had a new client come to me because she started a home decoration business. Her husband was a doctor and had always prepared their own tax return. The business was something new and he wasn't sure how to handle it.

I could tell he really did not want me doing their return and was testing me to see if I really knew what I was doing, and if my services were even needed. Eventually I was able to win his confidence after giving him some good advice, and they have been excellent clients ever since.

I think there are just some people who have always been smart enough to prepare their own taxes, but eventually come to realize a pro can do it faster and more efficient than they can.

[fliszt]

Persons do their own

I agree that there are persons that can do their own return but don't want to. I have bunches of them. Computer scientists, finance company VPs, highschool teachers, etc.
I'm the same way with home tasks -- I can do 'em but don't want to. Hire it out.
But I just find it difficult to think a physician is out looking for tax advise to prepare his own return, BUT I'm sure it exists. I'll ask my wife to ask her residents and interns how many prepare their own return and let you know. She's at UofM ENT clinic.
Have a nice spring day Bees.

[gkaiseril]

Leasons Not Learned

He is here looking for tax advice the same way he found leagl or investment advice about buying or buying into a medical practice.

And he has not learned his leason yet about free advice, but he is paying the price for the free advice!

And remember, doctors only practice medicine.