YOU vs. IRS: Depreciation – Cost “Allocation” v. Reality

You vs. IRS

S took depreciation deductions for his buildings (rental properties) but not land. The basis (depreciable cost) of each building was based on allocation of value to the buildings v. the land made by his tax preparer. The IRS disputed the allocations and reduced the deductions, claiming too little value was allocated to the land. Held: For the IRS. The IRS made its own allocations between … [Read more...]

Do You Have A Bookkeeper Or Do You Have a “Bookkeeper”?

bookkeeper vs bookkeeper

Small businesses try to save money or avoid professional fees by hiring an administrative assistant (AA) to handle their bookkeeping. In other cases, they contract independent contractors selling bookkeeping services with little or no accounting background. Their “little” experience might be based on previously running a family member’s business (not necessarily an accounting business), or … [Read more...]