Another problem I just noted: they did not use the mandatory §168(k) bonus depreciation even though there was no mention of electing out of §168(k) depreciation.
Thanks Tom for providing your wisdom and experience regarding thinking about more of how to plan out your tax practice better in ways in which to help us all minimize much of the stress and pressure upon on us in trying to provide the best of services to clients, remain in compliance with IRS and at the same time continuing our learning and growing in the professional tax industry......Blessing to you...Kerwin Jordan
Thank you immensely for this detailed explanation! Your clarity in explaining tax codes has solidified some crucial concepts for me, leaving me without any confusion. However, I'm deeply saddened by the blatant abuse of credit and the predatory tactics employed by some solar companies. Lately, I've had four different salespeople knocking on my door, all pitching the 'Inflation Reduction Act' in their solar offers. While I am genuinely considering solar panels, none of them have managed to earn my trust with their approach.
Regarding your excellent Tax Season Review email: We extend 75% of our clients....just not enough time. However, a bit of a cat chasing its tail is the time spent computing and communicating how much to pay by Apr 15 for those extending.
I have a client who is an IRS employee and she brought me this scenario a few years ago. I told her nope, no way, this is an egregious position and I would not be taking it on their return.
The other scenario I'm encountering is sales people using the entire tax credit as a lump sum payment on the loan taken to procure the solar to reduce loan payments. Thankfully most of my clients call me first before they enter into something like this, because they aren't always in a position to get the entire credit amount as a refund. I'd sure love to school these sales people on how the taxes actually work!
Another problem I just noted: they did not use the mandatory §168(k) bonus depreciation even though there was no mention of electing out of §168(k) depreciation.
Thanks Tom for providing your wisdom and experience regarding thinking about more of how to plan out your tax practice better in ways in which to help us all minimize much of the stress and pressure upon on us in trying to provide the best of services to clients, remain in compliance with IRS and at the same time continuing our learning and growing in the professional tax industry......Blessing to you...Kerwin Jordan
Thank you immensely for this detailed explanation! Your clarity in explaining tax codes has solidified some crucial concepts for me, leaving me without any confusion. However, I'm deeply saddened by the blatant abuse of credit and the predatory tactics employed by some solar companies. Lately, I've had four different salespeople knocking on my door, all pitching the 'Inflation Reduction Act' in their solar offers. While I am genuinely considering solar panels, none of them have managed to earn my trust with their approach.
Regarding your excellent Tax Season Review email: We extend 75% of our clients....just not enough time. However, a bit of a cat chasing its tail is the time spent computing and communicating how much to pay by Apr 15 for those extending.
Thanks Tom! This is the kind of stuff that should be talked about more in university classes.
I have a client who is an IRS employee and she brought me this scenario a few years ago. I told her nope, no way, this is an egregious position and I would not be taking it on their return.
The other scenario I'm encountering is sales people using the entire tax credit as a lump sum payment on the loan taken to procure the solar to reduce loan payments. Thankfully most of my clients call me first before they enter into something like this, because they aren't always in a position to get the entire credit amount as a refund. I'd sure love to school these sales people on how the taxes actually work!
I wonder if the IRS will end up looking into these like the ERC claims.