MISCELLANEOUS ACCOUNTING STUFF

This year it is likely that a lot of people have lost value in their investments, but it doesn't necessarily follow that they will have losses on their income tax returns that are due beginning April 15. However, some may have losses from other than investment. If they were ripped off, they can take a theft loss. But there are a lot of ifs even in that. A person has to make sure there is not some possibility of a recovery through a lawsuit or some other means. Timing is also important. The theft loss has to have occurred during the taxable year it is claimed.

Sometimes all of the qualifications and criterion stink like Yellowstone sulfur pots.

Our elected officials who make the laws are often fatheads. If they weren't, we probably wouldn't be in this financial mess we are in as a nation.

Accounting is a yawner and accountants are... well, lackluster. Uninteresting. Boring. Nonetheless, it is important if you are in a trade or business, to pay attention to at least rudimentary accounting. That doesn't necessarily mean you have to know what debits and credits are or that you have to hire a professional accountant like a CPA. But if you do choose to hire somebody to help you, make certain the individual is someone you can trust. And I would say, don't continue to give that trust without checking up yourself on the individual and their work.

Ultimately, you are responsible for your system of accounting and what you claim on any return. The accountant is not generally responsible. There are exceptions of course, but this involves the law and by now you should know that the law always has its complications and exceptions, etc.

Sloppy books and jumbled records can point to a hobby. You want to avoid that.