Corduroy Frog Posted March 29 Report Share Posted March 29 Here we go again: Bubba: "Hey, bought a brand new pickup truck!! $100,000. All for business. I parked it outside so you can see it." Preparer (after glancing out the window and seeing two fishing rods sticking out the window). "That's great Bubba!! We'll see what we can do with your mileage log." Bubba: "Whaddya mean mileage log?? I want'chu to write off this whole thing." Preparer: "They won't let us do that. Only a limited amount of depreciation per year. Not only that, but if you take actual cost, you STILL need a mileage log." Bubba: "Only a limited amount of depreciation? I'll never get $100,000 depreciated out before the thing is ready for the junk yard. I don't need a mileage log either. It's 100% for business. I tole you that." Preparer: Mileage log?? Where do you drive? Bubba: "Everywhere in my business. Just got back from Myrtle Beach last week and my wife wants to see the Alamo in June." Preparer: "I'm sorry Bubba. I don't think I can help you." Bubba: "Well I'm sorry too. I can find someone to do what I want them to do. I'm gonna take my honkin' new truck to Slick Sam over in Yonder County and he'll fix me up." Ever happen to you?? 5 2 Quote Link to comment Share on other sites More sharing options...
Randall Posted March 29 Report Share Posted March 29 Ha. I hear the new truck thing often. Not the rest of the dialogue but they do think they can write the whole thing off. 3 Quote Link to comment Share on other sites More sharing options...
Elrod Posted March 29 Report Share Posted March 29 If they want to show a percentage use, they should buy this. 3 Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 29 Report Share Posted March 29 Years ago I met with some prospective clients who represented a merchant card services provider as independent contractors. They received a 30 % commission of their customers monthly merchant card fees. They were really good salespeople and were very profitable. They had paid a Million $ for a custom built bus style motor home and they really wanted to write it off as a business expense. They didn't like my answers and kept on shopping for the perfect tax preparer. 4 Quote Link to comment Share on other sites More sharing options...
jasdlm Posted March 29 Report Share Posted March 29 Have a client (on second vehicle now) who always buys the vehicle in the business and pays all expenses of the same every year through the business (vehicle is definitely not business use). I make a journal entry in the books every year moving the vehicle expense to owners draw. 14 years running. We never discuss it. Don't ask/don't tell. I'm not hiding it. The client does his own daily entries in QB. 4 1 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 29 Report Share Posted March 29 Value of a company car is supposed to be calculated and added to the W2 if in a corporation. Sole prop is just prorated. I forget how partners are handled. 4 Quote Link to comment Share on other sites More sharing options...
Max W Posted March 29 Report Share Posted March 29 @Frog I like your dialogue. Sounds like the beginning of a short story. Perhaps, "Applachian Tax Cheat" 2 3 Quote Link to comment Share on other sites More sharing options...
Sara EA Posted March 30 Report Share Posted March 30 At a seminar an IRS agent once told us that the only vehicle IRS believes is 100% business use is a cement mixer. 7 Quote Link to comment Share on other sites More sharing options...
Randall Posted March 30 Report Share Posted March 30 7 hours ago, Sara EA said: At a seminar an IRS agent once told us that the only vehicle IRS believes is 100% business use is a cement mixer. I wouldn't go that far but I get what he means. 5 Quote Link to comment Share on other sites More sharing options...
JohnH Posted March 30 Report Share Posted March 30 I always liked the ones who said they’re too busy to keep a log and “if I’m audited I’ll just give the auditor my box full of gas & repair receipts and let them figure it out.” I’d always tell them “The auditor will just hand the box right back to you and inform you that you don’t have a deduction.” 6 Quote Link to comment Share on other sites More sharing options...
mcb39 Posted March 30 Report Share Posted March 30 How about the client (mine, this year) who traded in a truck that the previous preparer had never included on the Depreciation Schedule? Small business claiming 50% 1 Quote Link to comment Share on other sites More sharing options...
Catherine Posted March 31 Report Share Posted March 31 I have had three who took 100% (or nearly) for business. One former client (moved on), one current. One of them was a dump truck. Impossible to use for personal use. The other two are comprised of one small pickup, totally kitted up for business (no one else can fit in it), and one van, also kitted up for business including no place for anyone but a driver to sit. Both guys have motorcycles and other family cars for personal driving. Neither takes 100% business, but 90-95%. With mileage logs. 3 Quote Link to comment Share on other sites More sharing options...
BrewOne Posted March 31 Report Share Posted March 31 reminds me of an audit of a coworker's client. Taxpayer had claimed 95% but showed the auditor that the vehicle was 100% business use. He asked her why didn't she take 100%? Answer: "Because Ms. _________ won't let me claim 100%! 2 2 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 1 Report Share Posted April 1 Even when no one else fits in the vehicle, the driver might stop to pick up the dry cleaning or a gallon of milk on his/her way home or attend his kid's game after school or go to the dentist during the work day or... 4 Quote Link to comment Share on other sites More sharing options...
mcbreck Posted April 1 Report Share Posted April 1 Third week in a row a client has called up and said he didn't think he'd be able to make it into the office this week but would we still be able to file on time if he gets it here the next week. I'm 99% sure he wants to file an extension but doesn't want to admit it. 1 1 Quote Link to comment Share on other sites More sharing options...
JohnH Posted April 2 Report Share Posted April 2 4 hours ago, mcbreck said: Third week in a row a client has called up and said he didn't think he'd be able to make it into the office this week but would we still be able to file on time if he gets it here the next week. I'm 99% sure he wants to file an extension but doesn't want to admit it. This type of client doesn’t bother me. It’s those who was to bring it in an expect to have it completed bly Apr 15! who would irritate me. That’s why I set a cutoff date (usually somewhere around March 15-20). Anything coming in after that date automatically get an extension. Some of those returns still get finished, but there are no guarantees. Strict adherence to that type of policy turns April 15 into just another ordinary day. 6 Quote Link to comment Share on other sites More sharing options...
Catherine Posted April 2 Report Share Posted April 2 I've had a policy for years - and my annual tax letter states in bold - that any return not ready for signatures and e-filing as of April 1st *will* be put on extension. My cutoff is March 15th, but the poison pill in it is that I have to have all the documents and information in-house by that date. People rush to get me docs on March 14th & 15th - but it's never, ever, complete, so they have not made the cutoff. Manage your clients, or they'll manage you into premature gray hair and high blood pressure. 8 Quote Link to comment Share on other sites More sharing options...
Medlin Software, Dennis Posted April 2 Report Share Posted April 2 My hair skipped grey and went directly white (sans color). But then again, I have hair, so no complaints - other than the cost of a cut. I say it is from kids, they stole the energy I used to have, as well as my hair color . For me, the "days" are the W2 deadline date, and every quarterly deadline date. But, as someone told me so long ago, there is NO such thing as an accounting emergency. No ambulances come, no specialists are on call, etc. 6 Quote Link to comment Share on other sites More sharing options...
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