tag:blogger.com,1999:blog-6318055043707993918.post557265334050086993..comments2024-02-20T02:12:18.090-05:00Comments on THE WANDERING TAX PRO: WHY CAN’T WE ALL JUST LEARN TO GET ALONG?Robert D Flachhttp://www.blogger.com/profile/06034127763662917220noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-6318055043707993918.post-77019396081815340322009-08-22T16:10:16.206-04:002009-08-22T16:10:16.206-04:00SCK-
Right on, sister!
TWTPSCK-<br /><br />Right on, sister!<br /><br />TWTPRobert D Flachhttps://www.blogger.com/profile/06034127763662917220noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-7655212710513586472009-08-22T16:01:39.192-04:002009-08-22T16:01:39.192-04:00In case June doesn't post my comment...I might...In case June doesn't post my comment...I might have been a tad harsh...<br /><br />OMG -I can't believe what I am reading. Is this how tax bloggers behave? <br /> <br />First, let me just say that the idea of advising a client that they don't "need" a business checking account is ludicrous (in my opinion). Frankly, some clients just don't need to know about the things they don't need to do. LOL. Besides, not all the things we advice are clients are required by "code" tax or otherwise. For example, I advise my self-employed clients to have health insurance. It's not required, but heck it’s a good idea. <br /><br />However, that’s not why I felt the need to join this discussion. Frankly, your ad hominem attach on a blogger for his grammar and spelling errors, is the epitome of "chick think." It reminds me of a frustrated wife who lacks the skills to produce a valid argument so then attacks her husband's manhood, a topic completely unrelated to the discussion.<br /><br />Maybe this was your intention - or maybe not. <br /><br />However, your comments completely take from the substance of the argument and frankly invalidate your credibility since the ad hominem attack is generally used when one is unable to find fault with the original argument. <br /><br />I admit, I was offended and put off by your comments. You might want to rethink that for next time.Stacie Clifford Kittshttps://www.blogger.com/profile/06029250984064471478noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-5431122398548226042009-08-21T17:22:06.178-04:002009-08-21T17:22:06.178-04:00Missouri CPA-
Some very good words of advice.
No...Missouri CPA-<br /><br />Some very good words of advice.<br /><br />Now if only everyone would follow them!<br /><br />I read your comment to Ms Walker's post. You made some excellent points. However, your comment there did not include your list of rules. <br /><br />TWTP<br /><br />TWTPRobert D Flachhttps://www.blogger.com/profile/06034127763662917220noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-20561318876545334762009-08-21T17:00:41.194-04:002009-08-21T17:00:41.194-04:00I added a comment to Ms Walkers site.
Some simpl...I added a comment to Ms Walkers site. <br /><br />Some simple rules (not directed at you or anyone in particular) from a discussion list far far away:<br /><br />- Don't attack *people*. Attack a subject, a couch, or your car, but people are off limits;<br /> <br />- By "don't attack people", we mean don't name names; don't make "certain people" comments which are sufficiently pointed that we all know who you're talking about; Don't be mean;<br /> <br />- Address your comments to the issues and opinions with which you disagree, rather than the people with whom you are disagreeing;<br /> <br />- Remember that everyone in here is effectively a Fellow in the College of Tax Practice. Treat *everyone* in here with respect. Even if - *especially if* - you hate their guts, or their employers guts.<br /> <br /><br /><br />A Missouri CPAAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-82040721728563345312009-08-18T20:56:12.481-04:002009-08-18T20:56:12.481-04:00HL-
Excellent detailed research to substantiate w...HL-<br /><br />Excellent detailed research to substantiate what we have been advising our clients for years - and what every competent tax professional should be advising their clients!<br /><br />Thanks for adding to the discussion.<br /><br />TWTPRobert D Flachhttps://www.blogger.com/profile/06034127763662917220noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-44926457153271792252009-08-18T20:30:49.522-04:002009-08-18T20:30:49.522-04:00Whether or not a taxpayer has a separate banking a...Whether or not a taxpayer has a separate banking account for a business and/or comingles funds between the business and personal accounts is an issue that has come before the US Tax Court. The court always holds against the tax payer any comingling of funds and/or failure to maintain a separate account. A taxpayer must then prevail on other facts and circumstances to win their case that they are conducting a business. At a minimum, anyone advising a taxpayer to not maintain a separate bank account should also advise them that they stand a greater risk in a tax audit and before the US Tax Court if they fail to maintain the account. <br /><br />The first case, Morley from 1998, is often cited in later cases.<br /><br />T.C. Memo. 1998-312<br />ustaxcourt.gov/InOpHistoric/MORLEY.TCM.WPD.pdf <br />Morley v. Commissioner<br /><br />“Respondent argues that Mr. Morley failed to operate his<br />horse-breeding activity in a businesslike manner. Mr. Morley<br />kept extensive records. In managing the farm, Mr. Morley used<br />business documents.”<br /><br />“Mr. Morley maintained a separate bank account for the horsebreeding activity.”<br /><br />T.C. Memo. 1998-205<br />ustaxcourt.gov/InOpHistoric/RINEHART01.TCM.WPD.pdf <br />Rinehart v. Commissioner<br /><br />“Petitioner commingled the financial affairs of the horse<br />breeding activity with his personal finances. He paid all the<br />expenses of the horse breeding activity from his personal<br />account, and the horse breeding activity maintained no financial<br />accounts of its own. This commingling of funds is an indication that the activity is a hobby rather than a business for profit.”<br /><br />T.C. Memo. 1999-83<br />ustaxcourt.gov/InOpHistoric/LUNDQUIS.TCM.WPD.pdf<br />Lundquist v. Commissioner<br /><br />“The sole issue for decision is whether petitioner operated her horse breeding activity for profit in 1988, 1989, and 1990.<br />We hold that she did not.”<br /><br />“d. Commingling of Funds <br /><br />Commingling of funds suggests that the activity is a hobby rather than a business for profit." <br /><br />"Petitioner paid the expenses of the horse breeding activity from petitioners' personal account. She had no separate bank accounts for the horse breeding activity.” <br /><br />“Petitioners used a credit card for her horse activity. However, she did not say that she paid all of the horse activity expenses with the credit card, and she paid the credit card bills from petitioners' personal checking account. She did not segregate income from her horse activity.” <br /><br />T.C. Memo. 2009-69 ustaxcourt.gov/InOpHistoric/HASTINGS2.TCM.WPD.pdf <br />Hastings v. Commissioner<br /><br />“Manner in Which Activity Is Carried On<br /><br />Petitioner did not carry on her gambling activity in a<br />businesslike manner. Petitioner did not have a written business<br />plan for her gambling activity. Petitioner did not have a<br />separate bank account for her gambling activity, and occasionally, petitioner commingled personal and gambling funds.”<br /><br />The above is just as small sample of the Tax Court cases dealing with the subject. A search of Tax Court opinions with the keyword “businesslike” returns more then 50 results.Hal Leahyhttp://home.comcast.net/~halhrb/noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-39629016233254256242009-08-18T18:33:47.929-04:002009-08-18T18:33:47.929-04:00Trish-
Thanks for your support and comments and f...Trish-<br /><br />Thanks for your support and comments and for adding some good points to the discussion.<br /><br />I guess she will only publish comments that agree with her. <br /><br />I look forward to your post on this topic, as I do to all of your posts.<br /><br />TWTPRobert D Flachhttps://www.blogger.com/profile/06034127763662917220noreply@blogger.comtag:blogger.com,1999:blog-6318055043707993918.post-27467647022579977172009-08-18T18:01:59.385-04:002009-08-18T18:01:59.385-04:00Robert, just in case she doesn't post my comme...Robert, just in case she doesn't post my comment.<br /><i>I must say I am disappointed with your dismissal of tax professionals who have chosen to disagree with you.<br />As to the business checking account issue, I always have and will continue to recommend separate business and personal accounts. Why? Based on 21 years of tax return preparation (and 2 having micro businesses) my experience has taught me...<br />While good documentation of business expenses from a personal account may help in an audit, I would never want to convince an IRS agent that flowers for my mom were a business expense even if they were. <br />It's too easy to spend the business money for personal bills and not have to money to take care of their business bills. Or the reverse. If you use only one account, you still have to keep track of how much you can spend for business and personal. <br />Hobby vs Business classifications are easier if the owner is acting like it is a business and takes on the responsibility of a business account.<br />It's really cheaper. My business account is free most of the time and even if it wasn't a few bucks a month is much cheaper than paying the tax professional to clean up someone's personal/business account to do taxes. I can't think of a client with a merged account who didn't need me to spend extra time (and charge more) to audit their account for legitimate expenses. If you want to buy the kids' school supplies and copy paper and toner for the business together from one account. Be prepared to pay me to separate them and pro-rate the tax. Much cheaper to separate them and pay for them separately from different accounts.<br />I am sure I can come up with other reasons but this should get my point across.<br />Trish<br />PS- I hope I left you some spelling and grammar mistakes to belittle me with.</i><br />I also will have a short post on Taxing Times but it is not scheduled until after 5pm CDT.Trishhttps://www.blogger.com/profile/16343962683489406655noreply@blogger.com