San Diego Housing Bubble News and Analysis

I am not a CPA and the answer to this question clearly should be targetted to a CPA. Was she an employee of REMAX or was she an independent contractor? What reason did the IRS give for denying the deductions?

If she's smart she already has an accountant that she's been using to do her taxes and this is clearly something that she should be discussing with him/her.

Thanks for the replies. Her CPA tried to fight it but the appeal just got denied. They sent a denial letter that no one including her CPA can understand. The IRS just wants her to settle and write them a big check. She's an independent contractor with Remax.

I'm just curious what the realtors on here deduct.

Thanks,
Scott

I dont get it? Are you a troll? Those are ordinary business expenses which should be on her Schedule C.

Thanks for the reply. I've been called a lot of things, but never a troll. Interesting.

I don't get it either. Thanks for the info.

Scott

There is more to this than meets the eye. There is something she is not telling you, or something you are not telling us.

I am a CPA** and the expenses you are describing meet the definition of ordinary and necessary business expenses which are commonly allowed in her line of business.

I cannot believe the IRS would summarily disallow those expenses.

If the situation is accurately related per your synopsis, I would suggest you counsel her to ask her CPA to recommend a tax attorney. I then suggest she pays for a consultation with that attorney, plus 2 other tax attorneys (ask for referrals from friends and acquaintances), then selects the best attorney to fight on her behalf, which could be lengthy and quite expensive unfortunately.

**disclaimer - I am no longer in public practice and do not give specific tax advice.

As a former CPA it makese no sense to me either.

I'm not a CPA, but I can tell you that there's a bunch of fundamental requirements that she has to meet before she can start deducting stuff on schedule C - she has to be a sole proprietor of a business, she has to be involved with that business "with continuity and regularity", etc. The IRS might find fault with any link in the chain. Perhaps if you quote the denial letter, it will help.

sdrealtor: You've probably seen those license plates that say (owner's initials) XYZ CPA. Someday I want to get a plate that says EX CPA with the license plate holder to say "former bean counter".

Realtors are not qualified to give real estate advise, so why do you think they are qualified to give tax advise?

I have an inactive cpa which doesnt qualify me to give tax advice either. Was I giving tax advice?