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Posted By JohnC46 on 09/15/2012 5:33 PM
I am not sure, but off the top of my head there might well be a difference if she voluntarily paid for a project she wanted to be done versus she donated money to the association for their use.
Not really. Whether the HOA receives money, goods, or services, it is still considered income according to the IRS. One of the funniest examples I've seen in an IRS publication is that if a person steals a car, the fair market value of the car is considered to be income to the thief unless the thief returns the car before then end of the tax year.
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Posted By JohnC46 on 09/15/2012 5:33 PM
In my prior business I used the same CPA personally and professionally for 20 years. Over the years, I watched his practice become quite large with several partners. A personal friend of mine who was also a CPA said he would not be comfortable with the business write offs my CPA allowed. My reply well you are my friend, not my CPA.
Things have changed dramatically in recent years. The IRS has clamped down on people who are paid to prepare tax returns, including the requirement that certain individuals (those who are not CPAs) be required to pass a competency examination. All preparers must be registered with the IRS and there are severe penalties for knowingly preparing a return that is dishonest, incomplete, or is based upon an unreasonable position as defined in Section 6694(a)(2) of the IRS code. A reasonable position is defined as a position that has at least a 1 in 3 chance of being sustained on its merits if challenged by the IRS. IRS Circular 230 describes the standards of conduct required of all professional tax preparers and defines the fines and penalties that can be imposed if those standards are violated.