8582 -- Walkin’ With Giant Clients

[Black Bart]

Just found out what that dadgum form is for. It’s always poppin’ up automatically in my ATX forms selection queue ever’ time I punch in some Schedule E data -- never could figure out why. This past season a high-roller medical person (apparently lost on the way to a CPA) stumbled into this bastion of blue-collars ‘n’ low-dollars whereupon his upper six-figure salarium promptly threw my computer into a cipherin’ fit -- it kept sayin’ $200,000 minus $15,000 is $200,000 and, shoot, even I know better’n that.

Anyway, I figgered it out. You know that thing about deductin’ up to $25K rental real estate losses from non-passive income? Well, the 8582 flatly states “Generally, if your modified adjusted gross income is $150,000 or more…there is no special allowance,” and it keeps people like the doc and his spouse (a mere mortal earning $30K) from buttin’ their $15K commercial rental property loss against their wages.

Just doesn’t seem right – after all, the Congressfolk came up with that ($5K?) First-time DC Homebuyer's Credit (or somethin' like that) didn't they? So whassa matter with pill-peddlers?

Hmm, come to think of it, I wonder how my congressman's comin' along on my request that he introduce a bill establishing a below-the-line refundable First-time Flat-screen HD-TV Buyers Credit?

[DTS]

Hmm, come to think of it, I wonder how my congressman's comin' along on my request that he introduce a bill establishing a below-the-line refundable First-time Flat-screen HD-TV Buyers Credit?

Bart,

Question for you. How did you know this was the one credit I hoped would be pushed through for '08?

You mind reader, you!

Dennis

[gkaiseril]

CPA's Do Not Worry About Passive Losses.

I have encountered CPA's that do not know about the PLA for MFS or high income earners. The doctor pushes pills because he does not know how to manage real estate.

Growing up, one of my neighbors was a doctor and wrote a famous article about sugar pills and the power of suggeston. He also owned a very profitable real estate corporariton. He understood the medical and real esstate business and something of tax law. He started the real estate business in the depression and when FDR in acted Social Security, he started paying himself and his wife a salary and paying FICA taxes, under the theory that if the government was foolish enough to give money away he was going to apply for his share. And he and his wife lived long enough to more than recover what was paid into Social Security.

Ever wonder where the 15 rental inocme rule came form? It was not to help the poor.

Or the 60/40 split on commodity stardles? Most investors do not know aobut it and many who do, do not know how to show a profit. I have a client the pays 25% of his/her netprofif on currency trading for 5 years to the individual who taught him/her to trade. That is a tiddy commission each year. He/she bought a $7,000 PC this year, not a Best Buy type of PC, to track his/her trading activity. And he/she thinks the commission and PC are worth every penny spent.