Client sold vacant land parcel. Wants to defer paying taxes for 2 years and deduct landscaping expenses when sale is reported. How is this done if even possible?
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I don't think your client is going to get what he wants if he wants to defer paying tax on the gain
Is there a land contract for this sale?
Thank you! I didn't think so either but client is difficult so checked just to be sure!
Tax season can be challenging ---------------------- even more so when you have to deal with difficult clients.
I have noticed a new type of client who comes to their tax appointment with their own set of rules and regs. Some say I made a mistake since according to their sources unemployment benefits are not taxable!!!
I might have to reduce the invoice amount I charge since the client is helping!😜
I'm getting too old and grumpy to deal with those kind of people. I would refer them somewhere else ----------------- to themselves.
Is there any chance this vacant land is adjacent to his main home, and he is planning to sell that main home within 2 years? Perhaps that is where this idea is coming from.
If so, he would still pay tax on the gain now, but it may be possible to amend when the main home is sold because the vacant land could fall under the Principal Residence exclusion.
I'm guessing someone at the barbershop mentioned the option of deferring the tax on retirement withdrawals.
I might have to reduce the invoice amount I charge since the client is helping!😜
That brings up a funny story from last week. I was on skype helping one of my clients file her W-2 on SSA BSO. She said (jokingly) that since she was doing all the work that I should be paying her for this! I said, "sure, no problem, I can just bill you out as a subcontractor when I do your bill."
no, Its vacant property they owned for years
No this is not sale of a home, only a vacant lot,
They are aware of the tax consequences just trying to get out of them
Too funny!
😂
Me too! That might have to happen!!
@Camp1040 wrote:I might have to reduce the invoice amount I charge since the client is helping!😜
I had a friend that hired somebody to repair his furnace. My friend asked how much was it going to cost. The repair man told him the price, and said it will be 10% more if you want to watch me, and 30% more if you want to help.
Ummm... WRONG. You are going the wrong way on that there invoicing situation. Reminds me of the mechanic's labor rate sign:
If you watch us $ 155
If you give us advice $ 195
If you help/assist us $ 225
If you worked on it before $ 300
I meant did they sell this land on land contract? That could've spread the income over several years.
What does this part mean: "and deduct landscaping expenses"
no it was a cash sale
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