After you have reviewed the Tax Court videos, post in this Discussion Forum, the advice that you would give to your client who has the following situation: A new client has come to you with a statutory notice of deficiency dated July 25, 2016 proposing adjustments as follows to her 2014 1040:
After you have reviewed the Tax Court videos, post in this Discussion Forum, the advice that you would give to your client who has the following situation:
A new client has come to you with a statutory notice of deficiency dated July 25, 2016 proposing adjustments as follows to her 2014 1040:
Medical Expenses
$46,000
nursing home care for mother (after AGI limitations)
Real Estate Taxes
$ 6,250
Taxes paid on real estate owned jointly with client’s mother-disallowed 50%
Charitable Contribution
$15,000
Conservation easement on their property- deducted without an appraisal or other proof to support the valuation as required under IRC Section 170
Sch C Business Exp
$ 7,000
Advertising Costs – Web building and monthly fees paid with cashier’s check instead of business check
Sch C Gross Receipts
$ 5,000
Income reported on 1099 Misc that she reported in 2013, the year she actually received the money
Sch C Business Exp – novel legal issue
$25,000
This issue is subject to interpretation under the Code – no regulations or prior litigation
Total Adj to Taxable Income
129,250
Total Tax at issue
$42,652
33% tax bracket
Your client does not have the money to pay the deficiency and file a refund claim. What do you advise her to do? What type of information is important to explain to her? Share your recommendations and rationale in the discussion forum and reply to 2 of your peer posts.
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The post After you have reviewed the Tax Court videos, post in this Discussion Forum, the advice that you would give to your client who has the following situation: A new client has come to you with a statutory notice of deficiency dated July 25, 2016 proposing adjustments as follows to her 2014 1040: appeared first on Superb Professors.
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