Posted by JHyre in Ohio on November 18, 1998 at 15:18:51:
Tax Lawyers are usually much more aggressive than Tax Accountants by training. Tax Lawyers are also usually much more expensive than Tax Accountants. Don’t take this to mean that ALL Tax Accountants are not aggressive- I speak only in probabilities. My view of the probabilities is also skewed by the fact that I AM a Tax Attorney!
John T. Reed (any hisses from the audience?) puts out an excellent piece called Aggressive Tax Aoidance for Real Estate Investors. The Bureau of National Affairs (“BNA”) puts out a piece called Tax Management Portfolio 505, TRADE OR BUSINESS AND FOR PROFIT-ACTIVITY DEDUCTIONS. BNA 505 can be found in most law libraries, is VERY detailed and VERY dry reading.
Deduction law is complicated and HEAVILY dependent on your specific circumstances. The general rule is that if you pays the cash, you gets the deduction. Unfortunately, the law is also filled with more exceptions than I can mention here. Once you do find an AGGRESSIVE advisor, tell him ALL the facts. The advisor cannot claim a deduction for an expense that is unknown to him.