Harold, a CPA, has a new client who recently moved to town. Harold prepares the client's current-year tax return, which shows a net § 1231 gain. Harold calls the client to request copies of the returns for the preceding five years to determine if there are any § 1231 lookback losses. The client says that the returns are "still buried in the moving mess somewhere" and cannot be found. The client also says that he does not remember any § 1231 net losses on the prior year returns. What should Harold do? Justify your answer.
Answer to relevant QuestionsGeranium, Inc., has the following net § 1231 results for each of the years shown. What is the nature of the net gain in 2013 and 2014? During the year, Eugene had the four property transactions summarized below. Eugene is a collector of antique glassware and occasionally sells a piece to get funds to buy another. What are the amount and nature of the gain ...Benny purchased $400,000 of Peach Corporation face value bonds for $320,000 on November 13, 2013. The bonds had been issued with $80,000 of original issue discount because Peach was in financial difficulty in 2013. On ...Wesley and Myrtle (ages 90 and 88, respectively) live in an assisted care facility and for 2013 and 2014 received their support from the following sources: Percentage of Support Social Security benefits ...Paige, age 17, is claimed as a dependent on her parents' 2014 return, on which they report taxable income of $120,000 (no qualified dividends or capital gains). Paige earned $3,900 pet sitting and $4,000 in interest on a ...
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