Discussion:Client that just won't listen
From TaxAlmanac
Discussion Forum Index --> Basic Tax Questions --> Client that just won't listen
Discussion Forum Index --> Tax Questions --> Client that just won't listen
| 28 August 2008 | |
| A client is buying commercial rental real estate and against my repeated advice is insistent that creating a new C-Corp to hold the property is the way to go (I advised SMLLC). What's my defense when the client shows up at my office with a bazooka in a few years when the other shoe drops?
Seriously, can ANYONE think of a reason why a C-Corp holding the property is a good idea? I can't. I've tried every argument I can think of to dissuade him from doing it. | |
| 28 August 2008 | |
| Make some good notes in your file & maybe even put your reasoning in writing & mail it to the client, but then more importantly learn how to duck when he shows up with the bazooka! | |
| 28 August 2008 | |
| Nope.
Make the cleint short memo on your reason and document reciept for the future. If the property appreciates a lot and then he sales, huge taxes. | |
| August 28, 2008 | |
| I'd make the client sign the 'reasoning/this is the wrong thing to do' letter in front of me, then give them a copy. Mailing leaves open 'but I never got it' at bazooka time | |
| 28 August 2008 | |
| If the client went ahead after my explaining all that you have to him I would fired him as a client. If he does not respect my experience enough to listen I would not want to do his return. taxea | |
| 28 August 2008 | |
| The client has been to the library or bookstore, I suspect. There's a book by a lady CPA that's fairly recent (since 2000), and she actually advises the C Corp to hold the rental real estate. If I can put my hands on the book, I'll come back and amend. I read it, but I can't remember all the details. One thing I do remember, the book was not that old, and it had already suffered some heavy reading, in fact it was practically falling apart it had been read so much. She's got a website too.
Now, I could understand having a C Corp. managment co. for the fringe benefits, but as far as actually holding the property, no. But she does advise this, and refers to us types as amatuers. I'm serious. | |
| 29 August 2008 | |
| On a lark I found this link: [1]
If nothing else, it is...interesting. JR1 in particular will want to start drafting fan mail, methinks. | |
Bushmaster (talk|edits) said: | 29 August 2008 |
| Crow, you should learn to respect the more knowledgeable opinions presented by the outside experts.
| |
Tfortaxes@msn.com (talk|edits) said: | 29 August 2008 |
| I get a big kick out of telling smart guys, "I told you so! By the way, I will have to bill you by the hour to fix this! Thanks for not listening. You just paid for my trip to Venice!". | |
| August 29, 2008 | |
| Well Dub, I find it interesting that he blames accountants for making the whole issue confusing . . . as if we're the ones who make the laws. In any case, I think it's also a bit scary that people such as he are calling themselves "experts." | |
| August 29, 2008 | |
| Well, just found this, and I guess it's time for a field trip. Preparing ammo, where do I show up?
You might mention that this is grounds for malpractice by attorneys and accountants it's such a serious error. And then just illustrate for the client. Or if you have excess paper, print the horror stories on the board here. | |
| August 29, 2008 | |
| DON'T give him this website tho....I have visions of BeatleFred and all those arguments. | |
| 30 August 2008 | |
| Dub2131 - that link is amazing! I love the part about their having found "some information about double taxation".
I weigh in with the others who say that being even remotely associated with the formation of a C corporation that owns real estate is accounting malpractice and you need to resign from the engagement, which of course is unfortunate if the revenue to you is significant. | |
