Discussion:Client bring summary - you suspect none/insufficient records

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Revision as of 19:59, 13 March 2009
BusAd (Talk | contribs)
(Works from home.)
← Previous diff		 Revision as of 04:50, 15 March 2009
Jake (Talk | contribs)
(One client once)
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{{ForumReplyPost|UserID=BusAd|Date=13 March 2009|Text=Works from home.}} {{ForumReplyPost|UserID=BusAd|Date=13 March 2009|Text=Works from home.}}
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 +{{ForumReplyPost|UserID=Jake|Date=15 March 2009|Text=One client once told me "if there is an audit there will be a log". He was in outside sales, made over $150,000 in commissions. I went along.
 +As for a computer, if you are a lawyer and you make a $75,000 profit I think 100% s not going to be questioned as today a computer is necessary for legal research, court filings, etc. Other businesses that are not so computer/internet dependent may be another matter.}}

Revision as of 04:50, 15 March 2009

Discussion Forum Index --> Basic Tax Questions --> Client bring summary - you suspect none/insufficient records
Discussion Forum Index --> Tax Questions --> Client bring summary - you suspect none/insufficient records

BusAd (talk|edits) said:

13 March 2009
All those of you with a little more experience under your belt, please, advise.

1. A client brings you a summary of his income/expenses. Schedule C - gross 45K. While chatting to him you realize that he didn't keep a mileage log. (Last year, your specifically explained it to him). What do you do? Just put the number of miles the client gives you? (The number of miles is not unreasonable, though...)


2. A client has a construction business. Bought a computer. Claims he uses it 100% for the business. I asked whether he has another computer at home. The answer is no. After explaining the listed property rules, the client still insists on 100% business use...

Death&Taxes (talk|edits) said:

13 March 2009
Does the firm have its own office? Or does he work from home. Computer in the work place is not subject to the same rules.

BusAd (talk|edits) said:

13 March 2009
Works from home.

Jake (talk|edits) said:

15 March 2009
One client once told me "if there is an audit there will be a log". He was in outside sales, made over $150,000 in commissions. I went along.

As for a computer, if you are a lawyer and you make a $75,000 profit I think 100% s not going to be questioned as today a computer is necessary for legal research, court filings, etc. Other businesses that are not so computer/internet dependent may be another matter.

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