23 Apr / #taxesarehard
There are a lot of good things happening at our Firm and one of them is my commitment to figuring out what a hash tag is by year end. That being said, we have purchased the domain www.taxesarehard.com and are now using the hash tag taxesarehard. Or more correctly put #taxesarehard. I am not sure what this is going to do, but on top of all that we are also have a logo designed for #taxesarehard. so stay tuned.
It is my goal during the summer to post five days a week and then once we come around to another tax season I would switch to once a week. Of course I may take a vacation here and there.
Yesterdays observation in the tax world was this. While working on a tax return for a client i was reviewing a Schedule K-1 for a partnership interest the client has an interest in. There was a loss on the schedule and of course the client would benefit from being able to deduct the loss. The client does actively participate in the business, however, there was a negative capital account and the schedule was reflecting that they were not personally liable for any of the partnership debt.
So in other words, no basis. So in other words no deduction for the loss. It will likely be suspended. We are going to investigate it a bit more however because perhaps the schedule K-1 is reflecting something incorrectly. I am also curious as to why the capital account does not reflect any capital contributions since this is also the first year of the partnership.
So we wait for our answers. #taxesarehard
Tax advice contained in this communication, including attachments and enclosures, is not intended or written to be used, and may not be used for the purpose of (i) avoiding tax related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.