Discussion:Client bring summary - you suspect none/insufficient records
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Revision as of 12:30, 15 March 2009 Bjeter (Talk | contribs) (Take what the cl) Next diff → |
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| {{ForumReplyPost|UserID=Death&Taxes|Date=15 March 2009|Text=If the home office is the principal place of business, the listed rules should not apply.}} | {{ForumReplyPost|UserID=Death&Taxes|Date=15 March 2009|Text=If the home office is the principal place of business, the listed rules should not apply.}} | ||
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| + | {{ForumReplyPost|UserID=Bjeter|Date=15 March 2009|Text=Take what the client says on both issues. If the mileage seems reasonable and not a contrived number such as "same as last year" or exactly 20,000 miles, take it. If you get rid of all of your clients who don't keep a mileage log, you won't have any clients. Most IRS agents I've run across are fairly flexible on the mileage log thing any way. If it seems reasonable, they generally don't mess with it too much. I'd also take 100% on the computer. You are talking about at best a $1,000 asset. If an IRS agent wants to reduce the business use to 80%, you are talking about a $200 adjustment. The tax on a $200 adjustment is not worth an agent's time. They will pass on the small stuff, unless there's a lot of small stuff. The bottom line is that you are not an IRS agent, it's not your job to audit every single detail on the return. }} | ||
Revision as of 12:30, 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
| 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...)
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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. | |
| 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. | |
Death&Taxes (talk|edits) said: | 15 March 2009 |
| If the home office is the principal place of business, the listed rules should not apply. | |
| 15 March 2009 | |
| Take what the client says on both issues. If the mileage seems reasonable and not a contrived number such as "same as last year" or exactly 20,000 miles, take it. If you get rid of all of your clients who don't keep a mileage log, you won't have any clients. Most IRS agents I've run across are fairly flexible on the mileage log thing any way. If it seems reasonable, they generally don't mess with it too much. I'd also take 100% on the computer. You are talking about at best a $1,000 asset. If an IRS agent wants to reduce the business use to 80%, you are talking about a $200 adjustment. The tax on a $200 adjustment is not worth an agent's time. They will pass on the small stuff, unless there's a lot of small stuff. The bottom line is that you are not an IRS agent, it's not your job to audit every single detail on the return. | |
