Posted by Rich-CA on August 18, 2008 at 20:51:50:
That IS a load of crap.
Unallowed losses/Cap Gains - Posted by CP Smith
Posted by CP Smith on August 11, 2008 at 04:49:01:
Hi, I owned an office building in an LLC with a partner. We sold the building in 2007. I had unallowed passive losses of $87,000 that were carried forward and passive losses of $156,000 in 2007. The accountant is telling me that I can’t write those losses off against the gain, they need to be carried forward to years when I make less money. Is this correct? I read on irs.gov that they can be completely written off when the property is disposed of as long as it is a qualifying disposition. (not to a relative, completely disposed of).
Thanks for any help.
Re: Unallowed losses/Cap Gains - Posted by CP Smith
Posted by CP Smith on August 22, 2008 at 05:57:39:
Spoke to this CPA’s boss. He agreed with me. I hate when people make stuff up and I have to do their job for them. He said they were concerned because the cost of the seminars for the year was high. Well instead of making something up that it is an asset not an expense, they should have told me their concern. Needless to say I’ll be finding another accountant!
Re: Unallowed losses/Cap Gains - Posted by CP Smith
Posted by CP Smith on August 11, 2008 at 09:14:05:
As an add-on, this accountant is saying I have to amortize my expenses for seminars/training in real estate biz. They have always written it off in 1 year previously.
Re: Unallowed losses/Cap Gains - Posted by vrozier
Posted by vrozier on September 11, 2008 at 21:49:42:
Where are you located?
Are you a cash basis company? - Posted by Rich-CA
Posted by Rich-CA on August 12, 2008 at 10:21:10:
If you are, expenses like seminars and books are written off then you incur the expense. As far as passive losses, you can release the accumulated loss up to the maximum allowed by law (an there is one, and income plays a role, and the exact numbers I do not know). The rules for state and federal tax are different. I would ask another CPA their opinion and if they agree and don’t work in the same office (so he can’t check with your other CPA what you were told) then I’d live with it.
Re: Unallowed losses/Cap Gains - Posted by CP Smith
Posted by CP Smith on September 13, 2008 at 20:11:48:
PA
Re: Are you a cash basis company? - Posted by CP Smith
Posted by CP Smith on August 14, 2008 at 06:36:28:
Yes, the passive losses are able to be written off when the property is disposed of (federal). The accountant fixed that but we are still debating whether the seminar expense has be amortized.
Thanks
Where would the CPA get the idea that - Posted by Rich-CA
Posted by Rich-CA on August 14, 2008 at 09:56:38:
any kind of education is amortized? Ask him to show you the code or instructions that say this. I have been told by my CPA (I am taking RE classes for licensing) that I expense it when I pay for it.
Re: Where would the CPA get the idea that - Posted by CP Smith
Posted by CP Smith on August 18, 2008 at 19:23:44:
She is saying it is an asset, not an expense and that it has to be depreciated. It is an “intangible asset” since I can benefit from it over future years. What a bunch of crap
Oh, ask her to show you - Posted by Rich-CA
Posted by Rich-CA on August 18, 2008 at 20:53:00:
The IRS or court ruling or code citation where she got this idea so you can read it for yourself. We both could be wrong and only the original document can put that to rest.