Discussion:Frivolous arguments
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Discussion Forum Index --> Basic Tax Questions --> Frivolous arguments
Discussion Forum Index --> Tax Questions --> Frivolous arguments
| 20 February 2009 | |
| I have a client who made a "good faith deposit" for $5,000 on a condo he wanted to purchase. He later backed out of the proposed sale. The developer would not return his deposit. He now wants to claim it as a "property investment loss" on Sch D. He intended to live in the condo.
Could this be considered a frivolous argument if challenged by the IRS? | |
Me and the Boss (talk|edits) said: | 20 February 2009 |
| Sounds like a personal loss that is not deductible. | |
| 20 February 2009 | |
| if her tax pro had used the yellow box, as instructed, to learn about how to deal with forfeited/lost deposit/earnest money, she wouldn't have a frivous item on her return | |
| 20 February 2009 | |
| frivolous may = groundless
egregiously meritless cases IRS: THE TRUTH ABOUT FRIVOLOUS TAX ARGUMENTS IRS: Stiff Court Penalties for Frivolous Appeals to Delay IRS Collections TexCPA 12:49, 20 February 2009 (CST) | |
Me and the Boss (talk|edits) said: | 20 February 2009 |
| My understanding is that examples of frivolous arguments include:
Because the State of Vermont never properly ratified the Amendment that promulgated the income tax, the income tax is unconstitutional. or After the US went off the gold standard, there is no such thing as money, so there is nothing to tax. Your client is simply in denial of his own facts. | |
