In Uncategorized on 01/21/2021 at 17:35

Paul B. Bruneau and Karen L. Bruneau, 2021 T. C. Sum. Op. 1, filed 1/21/21, have a problem substantiating the depreciation deductions on their dog hotel and salon operation.

“Petitioners did not provide direct evidence of the amounts they paid for the various improvements to the [dog] property described above or the amounts of depreciation deductions they claimed for years before [first year at issue]. Mr. Bruneau explained that petitioners’ former accountant was in possession of their original records and that he had disappeared.” 2021 T. C. Sum. Op. 1, at p. 7.

STJ Daniel A (“Yuda”) Guy isn’t impressed with Paul’s story and blows off most of the depreciation, but Paul does get an entry in the Taishoff no-prize, sporadic “Good Excuse” sweepstakes.

There’s a lot of insubstantiation and defective recordkeeping, but it’s mostly the usual case of people running businesses who are bad bookkeepers. It’s the disappearing accountant that makes this one blogworthy.


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