Melinda Has Been Referred to You by One of Your

question 55

Essay

Melinda has been referred to you by one of your clients.In the past, she has prepared her own income tax returns, but she has become overwhelmed by the increased complexity of the tax law.Consequently, Melinda wants you to prepare her return for calendar year 2012.In reviewing her 2011 return, you note that she has claimed as a deduction the entire cost of a business building that should have been capitalized and depreciated.What course of action should you follow?

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Definitions:

Parental Responsibility

The legal term for the duties, powers, responsibilities, and authority that most parents have in relation to their children, covering their care, property, and education.

Negligent

An individual or entity's failure to take reasonable care, resulting in harm or damage to others.

Mortgage Agreement

is a legal contract between a borrower and lender that outlines the terms and conditions of a loan used to purchase property, with the property acting as security for the loan.

Age of Majority

The legally determined age at which an individual is considered an adult and capable of making legal decisions and responsibilities.