Working as a CPA

Instructions

You are a CPA paid to prepare tax returns for various clients.  One of your clients is determined to deduct the cost of adding a swimming pool to his house as an itemized deduction for medical expenses.  He argues this is a qualified medical expense, as he plans on swimming laps in the pool for exercise.  You do not agree that this expenditure is a deductible medical expense, but your client is insisting it is.  You know the cost will not exceed 7.5% of the taxpayers AGI, and therefore will not be deductible anyway.  To appease your client, you list the expense as an itemized deduction since it will not impact the final tax calculation.  Do you think you made the correct decision?  Where would you look for guidance on how to handle this scenario?  Add references

Answer

WORKING AS A CPAIntroductionWorking as a CPA implies working as an accountant, auditor, finance officer, or tax consultant to help business ventures solve their financial puzzles and make the right financial decisions. In so doing, the business can minimize litigations and suits, which may unfold due to bad or rather poor financial decisions. In this topic were are going to discuss some matters and give professional advice on how to handle a certain matter for a client who categorically added a swimming pool cost as a medical cost in his accounts to lower tax obligation.In matters of accounting and tax, revenue and expenses are categorized into two different classes. These two classes are Allowable and non-allowable revenues and expenses. Allowable Expenses and revenues. These are the expe...
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