Deductibility of Property Taxes Discussion 5
You’ve been a CPA for a few years and just lately opened your individual apply specializing in small companies. You’ve a gathering with a shopper, Jack, who has an fascinating profession as an expert gambler. He makes about $100,000 per 12 months and has gained many tournaments on the circuit. He’s contemplating coming into the WSOP to play for “the bracelet.”
As is customary process, you ask Jack for his taxes, and he says he hasn’t filed taxes since 2016 (which means he has not filed 2017, 2018, and 2019, the place 2019 is the present 12 months), as a result of he doesn’t work, resulting from his time spent taking part in poker and attending tournaments. He truly says he’s now involved as a result of his father mentioned he ought to have been submitting taxes, however he believed an accountant he met at a celebration, who after many, many martinis mentioned he wouldn’t need to file taxes as a result of it is a “pastime.”
Your duties:
Jack makes good cash now, however in 2017 he thinks he had losses and barely broke even in 2018. The primary venture Jack agrees to pay you for ($1300 max) is for a tax memo regarding this concern.
1. Utilizing an applicable analysis software, analysis to see if Playing is revenue and topic to tax.
2. Utilizing an applicable analysis software, analysis to see if Jack does need to file or not.
three. Assuming he does (regardless of the reply above), can you continue to file a return he has not filed beforehand in 2017 and 2018?
Utilizing the data above, write the memo utilizing the header beneath:
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Discussion 5: Deductibility of Property Taxes
Discussion 5: Deductibility of Property Taxes
You have been a CPA for a few years and have just lately launched your individual agency specializing on small companies. You’ve a gathering with a shopper, Jack, who has an fascinating profession as an expert gambler. He makes about $100,000 per 12 months and has gained many tournaments on the circuit. He’s contemplating coming into the WSOP to play for “the bracelet.”
As is customary process, you ask Jack for his taxes, and he says he hasn’t filed taxes since 2016 (which means he has not filed 2017, 2018, and 2019, the place 2019 is the present 12 months), as a result of he doesn’t work, resulting from his time spent taking part in poker and attending tournaments. He truly says he
