Today I felt like Ebinizer Scrooge

[SFA]

Today I felt bad for a client who gave me all the detail documents to support all of their charitable contributions. Included were several "donations" to an organization holding a carwash, the other was for a sub sale. So what do I do? I carefully deduct the value of the car wash and the sub from each of the donations. I felt like Ebinizer Scrooge.

The next client that I work on, had a business with over $30,000 of office supplies and expense. I inquired if there were any significant purchases, and also asked him to groom through his records in case something was misclassified. His answer: "No big purchases, all good."

Sometimes I feel sorry for the clients who bring in all their receipts and details.

 

 

[Margaret CPA in OH]

I understand.  Recall the $53 haircut issue I recently raised.  Client cut her hair and rather than leaving it on the floor to be swept away, gave it to an organization for wigs.  She had a definite benefit and would have cut her hair anyway.  Group consensus was to let it go.  I still feel a bit uneasy, though.

[jasdlm]

Wow.  I have really long hair, and I regularly send a 12 inch bunch to an organization that makes wigs for children.  I have a tax practice, so I think about deductions often, and it never even occurred to me to consider deducting the cost of the haircut.  Eeegads.

[kcjenkins]

I would not know how to allocate that $53 between cost of normal haircut vs donation value, unless the 'normal' haircut cost, say, $45, and the shop charged the extra $8 for collecting the hair.  And really, even if you deducted the entire $53 it's highly unlikely to move the dial on the A.