Prospective Client Revisited

[BLACK BART]

Posted February 7 · Report post

...a PROSPECTIVE CLIENT...Friday. Said he was single; gave me his docs (two W-2s, small pension, bank interest) which I plug in the computer and give him the refund amount. After a pleasant 20 minute chat I told him to come back in three days; he starts to leave, turns around, and says:

PC: Oh, it don't really matter, but I guess I'm supposed to tell you - I sold a house last year.

BB: Your house? Your personal residence?

PC:  Naw, my uncle died and left me his old, fallin'-down rent house. It wasn't worth but $10,000. 

BB: Oh, well, uh; we have to put that down.

PC: No, no, it's okay.  See, I let this guy have it for just what my uncle owed the bank on it.  I put it on a land contract between him and me.

BB: Well, we still have to....

PC: No, you don't understand.  He cain't pay for it all at once, so I'm helpin' him out. He pays me exactly what the bank payment is ever' month and I turn around and give it to them until the $20,000 note gets paid off.  I never get no money to keep and so I don't make nothin' off the deal.

(My) Failing to grasp this irrefutable logic exasperated him.  He guessed he'd have to go somewhere else where they knew more about taxes.  And out the door he went.

 

May 25th

PC MYSTERY SOLVED (I THINK) 

       Re: this guy (above) who had the inherited, run-down, under-water rent house – this week a lady I didn’t know stopped in saying her only income was social security and had not filed in years, but asking should she have filed and paid taxes on a $5K life insurance policy her uncle left her.

 

The departed uncle part rang a bell -- turns out she’s the PC’s sister.  While glad to hear no tax was due, she complained bitterly about ungrateful Unk leaving his old rent-house to her brother instead of her.  Claims she did lotsa stuff for the not-so-dear departed, conniving bro did zilch, and it was a damned outrage she didn’t get the house too.  I said she probably got the best of the deal considering the liability (I guess that’s okay to say since he isn’t my client and paid me nothing).  She said “What liability? Uncle XXX paid that house off years ago! My brother sold the house to some dope who watches those TV fix-up and re-sell shows and is paying off a big note that my brother owes the bank.”   

 

I swear, sometimes I think we independents attract more blowflies than honey.  I know (well; I think) he would not have approached HR/JH with this story and I guess they lump us in with the kitchen-table crowd (25 bucks-all comers).  Probably thinks that my "EA" means "et already".

[Catherine]

So you had yourself one GREAT escape, didn't you?

[RitaB]

My 20-year client called this week, gonna sell her rental, adjusted basis about 20,000, for 90,000. 

Congrats!

"I'll just make enough to pay off the heat and air unit I think.  Just wanna know if that'll cause me to pay back SS benefits."  

Ummm.  (I seriously had to sit there a minute, thinking, this is your one and only concern right now??)

No, you'll get to keep em, but they'll be taxable.  And I will be mailing you a pretend return so you can see how much of your heat and air conditioning money you best save up for yer tax bill.  Love, Rita, EA (Even After 20 years they think if they say they didn't make anything my job is to tell IRS that.)

 

 

[BLACK BART]

On ‎5‎/‎26‎/‎2017 at 6:39 AM, RitaB said:

My 20-year client called this week, gonna sell her rental, adjusted basis about 20,000, for 90,000. Congrats!

"I'll just make enough to pay off the heat and air unit I think.  Just wanna know if that'll cause me to pay back SS benefits."  

Ummm.  (I seriously had to sit there a minute, thinking, this is your one and only concern right now??)

No, you'll get to keep em, but they'll be taxable.  And I will be mailing you a pretend return so you can see how much of your heat and air conditioning money you best save up for yer tax bill.  Love, Rita, EA (Even After 20 years they think if they say they didn't make anything my job is to tell IRS that.)

   "No cash - no gain." (BB/2-7-17 post) 

"Yeah, every single person that ever sold real estate in this town thinks that.  Every.  Single.  One." (RitaB/2-7-17 post)."

 

You're right - they're everywhere.  Doubtless you're very much looking forward to breaking the news to the poor soul above (may be the end of a 20 yr. run).