RitaB Posted January 27, 2011 Report Posted January 27, 2011 Client brought his stuff in this morning, when I looked in his file, I had to chuckle a little: 5/21/10: Joe (I'm in the Money) Taxpayer called to say he was going to receive a $20,000 settlement and inquire about the possible tax consequences... blah, blah, blah. 8/23/10: Joe (I'm not in as Much Money) Taxpayer called to say that he was NOW going to receive only $5,000 in the settlement...blah, blah, blah. I just looked at the letter from the attorney after the DUST "settled" on November 19. Settlement was indeed for $5,000. And after attorney fees, Joe (What Money?) Taxpayer received $1,923. Quote
kcjenkins Posted January 28, 2011 Report Posted January 28, 2011 And just wait until you explain to him that this means he has $5000 of INCOME and has to deduct the attorney fees on Sch A. Quote
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