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Post by George on Jun 3, 2008 6:44:20 GMT -8
Get your questions answered. Post a message.
GT
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Post by drback222 on Jul 31, 2009 0:02:41 GMT -8
Just got my first audit. Weird thing is I never got it in the mail even though the agent I talked to stated it was mailed 10 days ago with no response (that is why they followed up with a call). The agent ended up faxing it to my office. The fax requested Sch C1 - Gross receipts or Sales, Sch C1 - Other Expenses, Sch C1 - Meals, and Entertainment, Sch C1 - Travel, and Sch C1 - Car and Truck Expenses... What do you think they are targeting with my return?
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Post by duluthtax on Jun 10, 2017 4:23:24 GMT -8
I had my first face-to-face meeting with an Office Examiner for a client of mine. I am happy to report that using George's techniques - specifically the IFRAC and BDA (bank deposit analysis), I was quickly able to go thru the audit in half the time. My membership fee paid for itself alone with these time-saving techniques. I had a scheduled 8 hour appointment, but was able to finish everything up in 4.5 hrs!
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Post by duluthtax on Jun 10, 2017 4:38:40 GMT -8
I DID have an issue though with the audit examiner - specifically regarding depreciation expense. My client had originally lived in a house that they converted to rental property in March 2015. In preparation for this conversion, they had purchased various appliances (starting in 2010) to use as upgrades once they converted the home to a rental. The total for all appliances was around $2,700. The IRS auditor refused these deductions claiming that the assets had already been fully depreciated. In my initial interview with my client, I was aware of the date (2010) of the expenditures. Probing deeper, my client informed me that they had stored the items - using a 3rd party storage facility - for the eventual use in their rental property. Although, I explained all this to the auditor and showed years worth of rental (storage unit) receipts, the auditor would not allow the deduction. I explained to the auditor, that the assets were "placed in service" March 2015, that is when depreciation should begin. The auditor claimed (like a vehicle) that they began depreciating in 2010. I'm not sure who is right about this. Even more to the point, the auditor used the old "burden-of-proof" doctrine.....that my client would have to prove the assets held were not used personally until "placed in service" in March 2015.
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