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I had similar one to this. Other people saying makes lots of money. So I ask could tp if they could get other people sch e and lets compare. NO deal. So how much is truth?

I have told her these things, she listens to other realtors that tell her they are making a killing with their rentals. After my responses to her today, she said that she is tired of paying so much in taxes. I replied that then she would have to make less money. It is an endless circle. She agreed that maybe some of the people that she was listening to weren't exactly truthful, had the additional earned income that they have, or have few expenses or debt.

Looks good on paper, but I wish they would tighten up on fraud by eliminating refundable tax credits before opening the floodgates to welcome even more. …and there’s your run-on-sentence for the day…

If she makes more money, she'll pay more taxes. If she wants to make more money, she can depreciate everything possible over the longest life possible. She can raise rents. Usually landlords want to make as little money as possible or, better yet, have losses. Then they make money when they sell, and have suspended losses to release in the year of sale. Some of that sale income can be long-term capital gains. You're her tax advisor. Maybe she needs a life coach.

I understand your post and what you are saying, but I don't understand what your client expects you to do?

"Sen. Elizabeth Warren, D-Massachusetts, and a group of nearly two dozen Senate colleagues introduced legislation to enable more taxpayers to file their taxes online for free directly via the Internal Revenue Service. The Tax Filing Simplification Act would direct the IRS to develop a free, online tax preparation and filing service that would allow all taxpayers to prepare and file their taxes directly with the federal government instead of being forced to share private information with third parties. It would actually prohibit the IRS from entering into agreements that restrict its ability to provide free online tax preparation or filing services. The bill also aims to improve taxpayer data access by allowing all taxpayers to download third-party-provided tax information that the IRS already has into a software program of their choice, saving time and decreasing the risk of math errors on W-2 income or Child Tax Credit payments that lead to significant processing delays."

Senator Warren should try doing her own tax returns this way and see what results she gets. She wants the IRS to provide a government version of Turbotax without considering all the problems people have had with TT. It is so bad that that TT has had to hire EA's and CPA's to help taxpayers prepare their returns. Will the IRS be providig help as well with IRS employees that have had only a rudimentary course in taxes?

A realtor who exaggerates, what a surprise! /s/s/s

LOL. The IRS might not be going after clients for fraud, but they will most certainly disallow some credits and assess penalties and interest for late payment.

You know imputing numbers is easy but is their theory correct?

I don't know what more that I can do to help this client. I love her to death, but I'm not a real estate advisor and I'm not going to go take one of those seminars to tell me how much money that I can make by getting rental houses. Between her spouse and she they make from $180K-$250K in earned income. She is a realtor (Sch C) and they both make good money. They have three rental houses and think that they should have more deductions and make more money like other people tell them that they make. I can't pull expenses or income out of the air. LOL Much of the money that they have spent since buying them less than three years ago were for improvements, no they are really improvements. I try to expense anything that is legitimate expense. All three of the houses are mortgaged which probably doesn't help their cash flow. She has prepared a spreadsheet to qualify for real estate professional, but she wants to slow down. That will not help her when the expenses aren't deductible. I don't want her to feel like I'm not doing my job, but I don't know what more I can tell her to help them. She has already made 3 times as much gross income on her commissions in 2022 as all of 2021. That will probably slow down the last 6 months, but everyone loves her and she works hard, so she may still increase. I've mentioned way more money into retirement, but she does not want to tie it up. Does anyone have any ideas that would help since my crystal ball does not seem to be helpful? Thanks! Bonnie

Simplification = I get to increase my fees!

I didn't know the IRS offered this until I stumbled across it earlier this year: "About Free File Fillable Forms Free File Fillable Forms are electronic federal tax forms you can fill out and file online for free, enabling you to: Choose the income tax form you need Enter your tax information online Electronically sign and file your return Print your return for recordkeeping If you choose Free File Fillable Forms as your Free File option, you should be comfortable doing your own taxes. Limitations with Free File Fillable Forms include: It won't give you guidance about which forms to use or help with your tax situation It only performs basic calculations and doesn't provide extensive error checking It will only file your federal return for the current tax year No state tax return option is available You can't make changes once your return is accepted Free File Fillable Forms is the only IRS Free File option available for taxpayers whose 2021 income (AGI) is greater than $73,000. Taxpayers whose income is $73,000 or less qualify for IRS Free File partner offers, which can guide you through the preparation and filing of your tax return, and may include state tax filing."

"On May 20 the Houston headquarters of R&D tax credit consulting firm Alliantgroup was raided by the IRS, in the weeks since we’ve had plenty of speculation about the whys and we’ve heard countless accounts from current and former Alliantgroup employees about the “evil, toxic, and emotionally damaging company” that employed them. We’ve now learned that the government is sending subpoenas to CPA firms that referred clients to Alliantgroup and is seeking client tax returns as part of the investigation. Going Concern has reviewed a letter from one CPA firm to clients that received services from Alliantgroup advising these clients that the firm has received a federal grand jury subpoena seeking information relating to Alliantgroup. The government’s demand for information is “broad” and includes tax returns and related information in the firm’s possession for clients who received services from Alliantgroup. The government’s demand references R&D tax credits, cost segregation, and IRC Sec 179D and any related information from January 1, 2011 to present. Clients are assured the firm believes the focus of the grand jury proceedings is strictly related to Alliantgroup, not the clients. The letter states in explicit terms that the firm has no reason to question prior tax credits and/or deductions clients took as a result of their relationship with Alliantgroup at this time. The letter does advise however that clients are welcome to consult with their own attorneys to better understand their rights in this legal matter."

It would be hard to find RD in Brasil.

Well, I don't who raised these people, but one way to guarantee I don't respond is to direct me to kindly familiarize myself with anything. Familiarize yourself with this: Not today, Satan.