Discussion:Makes me question myself...
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| 26 January 2008 | |
| So many times I (and I know we all deal with this) will have a client/potential client say they read something, heard something or their brother-in-law always does it 'that way'. I gracefully listen, try not to smile/laugh and explain why they are wrong. Yet, sometimes somethings sound so good and so legitimate that it makes me question even the simplest things. I spoke with someone yesterday who has used HRB's executive preparer (seriously?) and every year had to question what they did and why they did it and proved them wrong every year. This individual apparently reads a lot, reseaches and get all kinds of tax documents, etc. and knows what can and cannot be done. Okay. He said last year the HRB preparer(s) kind of laughed at him when he told them he had proof that capital losses were NOT limited to $3,000 per year, but you could legitimately deduct $20,000, $30,000 in one year and HRB told him to go ahead and if his passed muster, they'd go back and amend as many returns as this would apply to. According to this taxpayer, he took a $30,000 CL deduction and got his refund and then the HRB preparers amended those returns. Again, what in the world am I missing here? | |
Death&Taxes (talk|edits) said: | 26 January 2008 |
| 25-30 years ago, some lefties used to claim credits for the percentage of their tax dollars spent on defense, and I saw one return where it went through for two years, but in the third year it was bounced. Anyone can put down anything and perhaps get away with it.
Of course you can deduct 30,000 in capital losses, as long as you have 27,000 of capital gains. | |
| 26 January 2008 | |
| We call such questions "reality checks" around here, as in have I entered an alternate reality like on StarTrek?
This is a good place to check them out, if you don't have local or phone tax preparer buddies available, or have simply asked them too many such questions recently. Did you read the recent announcement about several tax preparers who were issued an injunction against preparing tax returns, and had to send a copy of the injunction to everyone on their client lists? It looks like the HRB folks may be going in that direction. | |
Death&Taxes (talk|edits) said: | 26 January 2008 |
| Yo, Kevin, he went back and amended other returns, so there would have been 1244 losses every year....and anyway, these hit the 4797. Ya think someone is playing a game with LJA? | |
Actionbsns (talk|edits) said: | 26 January 2008 |
| LJA has this client allowed you to review the returns? That might shed some light on the subject. When I doubt myself I come here, and I ask to see what was done previously so I can see for myself how it was put together. | |
| 28 January 2008 | |
| Actually, this was someone who called to become a client and once he said this I pretty much ruled out that he would. I told him I would love to see what his research was and how he came to this conclusion. We'll see. Kevin, my understanding is that this is strictly, straight-forward losses from investments (stocks, mutual funds, etc.) that he owned personally. It has to be one of those scams, gotta be, and I'm not getting involved in any of that, ever! Thanks for the sanity check. | |
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