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IRS is auditing me, says my business did not make a profit in past 7 years up to 2011. Reason I did not make a profit is because i did my tax wrong (thanks turbotax) and filled out deductions on Schedule C.
They say they are disallowing my "schedule c deductions" even though I amended by return and put deductions on schedule A . . . what do you suggest I do???
Hi, you answered my questions before, how are you doing?
yes, I know that . . . reason I didn't have profit was economy was bad (I'm in realestate) and I pay a lot of property taxes on vacant land I own.
yes, I held the property for long-term investment hoping economy would get better but it didn't now I'm stuck paying thousands of dollars in property tax on vacant land i can;t sell . . .
we discussed this before, i'm NOT a dealer but an investor
investors do not capitalize, there is no way i could stay in business if I capitalized
irs is not allowing any of my expenses
i talked to other CPAs and they all say i can deduct property taxes if I'm an investor
not a hobby, i make a living at this
i have one on appeal (just filled out form) and one in tax court
okay, thx, this is real nightmare I think if i could just meet someone face to face and explain it . . . the mistake.
mistake of reporting expenses on schedule C rather than A