Management fees

[ILLMAS]

I have a question, TP was force to pay a management fee as part of the bankruptcy/restructuring process to a third party assigned by the courts, they call it a management fee, however they don't move a finger nor are a management company managing his properties and I was wondering if there is another name that can used instead of management fee?  He is a real estate professional and having management fee on his tax return can cause a red flag (went through it already, association fees were being enter under management fees on Sch E), so I need to find another name for it.  Hopefully someone can help me.

 

Thanks

 

MAS

[JohnH]

Administration Fee?

 

Consulting Charges?

 

Oversight Fee?

 

Purchased Services (my personal favorite catch-all)

[Pacun]

 

 

Purchased Services (my personal favorite catch-all)

 

Is there any better "catch-all" than miscellaneous"?

[JohnH]

When I first got into the accounting business over 40 years ago, I was told to look at anything I was tempted to put into "Miscellaneous" and imagine someone asking me to explain what that expenditure was really for.  The answer to that question is where the initial entry should go.  So I just make that up-front decision and I never use "Miscellaneous" on a financial statement or a tax return. 

[Pacun]

I know. I never use misc either.

 

Professional fees is the misc for most fees.

[Lee B]

My personal favorite is "Outside Services"

[kcjenkins]

And in this case, "Bankruptcy fee" might be ideal, since the signal it sends is "this guy was in bankruptcy, so even if we find anything questionable, it will probably be exempt."  Auditors don't like to waste their time.

[taxxcpa]

One of my clients once had something on their income statement called miscellaneous for about $10,000.  I questioned it and one of the employees said, "That's a lot of miscellaneous."  I finally got them to explain it and reclassify it to something less suspicious.

 

When I worked for the Air Force, some defense contractors would hide their liquor bills under miscellaneous.

 

I've used miscellaneous a few times for very small amounts.

[Pacun]

 

 

When I worked for the Air Force, some defense contractors would hide their liquor bills under miscellaneous.

 

I've used miscellaneous a few times for very small amounts.

 

I also drink a few times small amounts.

[michaelmars]

liquor is supposed to go under staff moral or mental heath training....Everyone that has gone through a recent tax season should know that.

[ILLMAS]

For accounting clients, I prefer them to use Miscellaneous or Uncategorized instead of them creating a new chart of account for everything, last year I cleaned up a companies chart of accounts, we went from have 8 pages to 2 pages.

[kcjenkins]

Ah, yes, QB makes it so easy, just adding a new account for not only new situations but for typos too.

[GeneInAlabama]

liquor is supposed to go under staff moral or mental heath training....Everyone that has gone through a recent tax season should know that.

AMEN!

[Gail in Virginia]

For accounting clients, I prefer them to use Miscellaneous or Uncategorized instead of them creating a new chart of account for everything, last year I cleaned up a companies chart of accounts, we went from have 8 pages to 2 pages.

That's why I don't tell them not to use Miscellaneous - I just ask for a transaction report for that account and then pop things into the correct account with a journal entry.  Some clients use Ask Accountant the same way, but most of them like miscellaneous better because they think they already know where it goes.

[Bart]

Instead of using miscellaneous, I once had a client that had a GOK account.  I asked what that was and was told it meant God Only Knows.

[kcjenkins]

Well, that's a good one.  When I was teaching accounting, I had my students put their 'unknowns in the WITTB account.  

 

For those who don't know, that's the What It Takes To Balance account.