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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Brendan W who wrote (719)	3/7/1998 1:41:00 PM
From: MrCash	Read Replies (1) \| Respond to of 5810

At the time you decided to invest in a publicly traded partnership you decided that you wanted a competent CPA to do your taxes. Makes sense. What about having a very small hobby/business with maybe $3,000 in income and $2500 in expenses? Is there an easy way to account for the $500 income on a line or two of Schedule 1040 and Schedule A? It seems I should just have to keep good records and write down the $500 as misc income, but that probably makes too much sense. thanks

To: Brendan W who wrote (719)	3/7/1998 2:55:00 PM
From: Colin Cody	Read Replies (1) \| Respond to of 5810

Sometimes it is a shame that an investor has to hire a CPA "just for a small K-1" I have several clients who need me JUST for that. The rest of their 1040 is so straight forward that they could do it themselves. . One bit of caution: When we say a "good CPA" I think that means just that. I have seen returns from H&R Block that were "prepared" no better than a high-school shop student could have done. . I like H&R Block and refer many unsolicited client inquiries there - but for BASIC & SIMPLE stuff W-2 simple/easy 1099, maybe a basic retirement plan, and the basic simple regular itemized deductions and rental properties, and the most basic partnership K-1s. . Beyond that I would avoid those lower-level preparers like the plague. . ON THE OTHER HAND: . If your K-1 shows a SMALL LOSS (and you may need a CPA to tell you if it does) then like you say, you could just FORGET ABOUT IT. . The IRS does not require you to take partnership K-1 losses. You may skip reporting them, at your own peril. . Good Luck!