Newt's Taxes

[Mike D]

I think we should all review Newt Gingrich's tax return to determine a fair and equitable fee for our services.

The link is as follows:

http://www.newt.org/sites/newt.org/files/GingrichIncomeTaxReturn.pdf

For those of you who are do not feel compelled to peek, the fees charged for tax preparation by a Maryland CPA Firm, per Schedule A of the return were $8,505.

That's what I'm talkin about!

Mike Dubin CPA

[Pacun]

I bet you that in order for the Grengrichs to get the foreign credit of $243, they had to pay the CPA more than that. Maybe clients should have an option using the materialy principle. If I have to prepare that return, it would take a whole month. Keep in mind that you will have to review the return a few times before presenting it for signature.

[Kea]

3 Schedule Cs with no expenses on any? I "heard" that was a hint that they weren't "real businesses."

(And if they CPA did it correctly, the $8505 was the fees he paid in 2010, not for the 2010 tax return.)

[jklcpa]

Two of the Sch Cs were for board of director fees and the third Sch C was for speaking engagements with gross rev of ~ $21K. There may have been no expenses if the host organization was covering the travel, meals and other related expenses.

[Kea]

I agree. It is possible to have a business without expenses. It's just a due diligence question since most businesses will have expenses. (My very lame attempt at humor.)

[Lion EA]

I would've put the appropriate part of my tax prep fees on schedules such as C.

I have a retired banker who's now on their board of directors. In researching, his income rises to "conducting a business" and needs to be reported on a Schedule C. But, his expenses are not "regular" enough (six times per year flying up from FL to CT and driving across state for board meetings, maybe a few hours the day before reviewing materials) to be deductible as business expenses on his Schedule C. Not fair, but that's the way I understand it.

Also have some teachers who proctor SATs and such, receiving Forms 1099 but having no expenses. Same when they tutor from their kitchen table on Saturdays leading up to those exams.

Not that unusual for me to see a Schedule C with little or no expenses. Now, if my clients were in EIC range, or otherwise qualifying for credits by that extra income, I'd really look into them.

[MAMalody]

Here is a learning opportunity for me.

I have always interpreted "usual, ordinary and necessary" to be business specific. Wouldn't your definition of "regular" depend on the business conducted. If a board only meets 6 times a year, why wouldn't the expenses for that board be deductible as a business expense even if it is only 6 time a year expense?

[Lion EA]

I did the research a year ago, so don't have the cites handy. Examples for directors/board of directors were quite specific, though. Besides, as a practical matter, with such sporatic useage, any potential OIH would fail the exclusive part if not the regular part of regular and exclusive use (unless the "office" sat empty 300 days per year), denying an OIH deduction for preparation and thereby also denying any travel as tax home won't be in FL but in CT. If you have some cites for me to read, please give.

[joanmcq]

Most of Newt's speaking & other income is reported on the 1120-S from Gingrich Enterprises, which I read in Forbes, is now Gingrich Productions, from whence Callista got her wages. The Sch C for speaking is probably one that got reported under his SSN.

$8505? It's really not that complicated a return. I've got a few that are much more complex than theirs. I could live quite nicely with a few clients that would pay that much for a that return. Now it's the 1120s's I'd like to examine!

[MAMalody]

I didn't read anything about OIH expenses in any postings in this thread, however, I would agree that would probably not be possible.

[Pacun]

Does any one have the link for Romney's taxes?

[Mike D]

This is a link to all of his returns for 2010. I wonder how much he was charged for these to be prepared? It is not disclosed on the returns!

http://www.boston.com/news/politics/2012/president/candidates/romney/romney_tax_return_1040_2011/

Mike Dubin CPA