Tax writeoffs ?

[bobm]

On a recent tax audit ... a couple with healthy incomes decided to grow mary wanna as a business on their 7 acre property . They invested about $100,000 per year for 3 years on new greenhouse buildings, as well as on growing equipment, lighting, irrigation equipment, etc. etc. . They had NO sales during those years. This couple claimed their investments were start up costs and they claimed them as such. Their tax preparer did not question them nor offer any advice during the preparation of their tax returns... just garbage in, garbage out. Since it is illegal to grow and sell mary wanna as US law ... so , they can NOT claim their investments as start up costs for the years they were claimed. Also, since they had NO SALES for those years, their venture does NOT QUALIFY AS A BUSINESS . They left their tax audit with about just under six figure tax bill.

 

[dickiebird]

OH, man I hope mind gets through without an audit....

THANX RICH

 

[baymule]

Dumb bells. With a dummy tax accountant.

 

[bobm]

OH, man I hope mind gets through without an audit....

THANX RICH

Well Dickie .... I hope that you are not investing in a similar venture

 

[bobm]

In Today's audit .... a Rock band claims that they have been in the music business and for the past 6 years so they are claiming thousands of dollars as business expenses for travel, hotels, meals, etc. Each of the members have w-2 jobs . They only show less than $200 as income annually for those 6 years. That alone was enough to declare their business as " NOT FOR PROFIT " and all claimed expenses as null and void. They received a healthy tax bill .

 

[baymule]

Why do people try to cheat the system? Do they really think they are that smart and thousands of IRS expert employees are that stupid? Just obey the laws and stop being idiots.

 

[flowerbug]

i couldn't imagine making that kind of investment without knowing the laws and such... wow...