Technical topics regarding tax preparation.
5-May-2021 7:58am
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I saw a new twist from another preparer (CPA) this year. Since the unreimbursed employee expenses went out the door a couple years, this preparer decided to take depreciation on a vehicle used in taxpayer's employment with a company from which he receives a w-2. Have also seen mileage taken on Sch C for this same purpose.
Some people just can't let go. I really don't know what is going thru his head unless I am totally out of the loop.
5-May-2021 8:16am
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Not a statutory employee, by any chance?
5-May-2021 8:35am
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Was there any income on this Sch C? Or just car expenses?
5-May-2021 8:49am
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5-May-2021 10:35am
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Not statutory employee, no income.
He has basically moved what used to be itemized deductions to Sch C to keep the deduction. I have never seen anything quite like this and was afraid I was losing my mind.
5-May-2021 10:37am
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Someone should turn that idiot in....that's way beyond just dumb. It's fraud.
5-May-2021 10:53am
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Sadly I have seen it, too.
5-May-2021 6:20pm
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Bushmaster wrote:Some people just can't let go. I really don't know what is going thru his head unless I am totally out of the loop.
Well there are only two explanations right? He either has no idea what he's doing or is reckless and unethical.
Take your pick.
6-May-2021 5:26am
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I've had clients ask me about this as they "know someone" who takes the deduction. There was a preparer in our area who would take deductions for employees on a C, but I've not heard anything about her in two years. Don't know if she is still in practice.
6-May-2021 7:09am
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Couple years ago, when 2106 was still used, I had a new client come in with one that had mileage as well as repairs for the same vehicle. For a bonus, they also omitted the non accountable amount paid to the employee each month.
This was done by a local enrolled agent, who is well spoken of. Still shake my head over that one.
6-May-2021 7:38am
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I've seen it done and I've had clients argue with that it must be legal since the other guy is doing it.
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