<philx_100[at]hotmail.com> wrote:

- quote -

Since you supported him and his income was low enough, he's
a qualifying relative for dependency purposes. Claim him,
and tell him you're doing so. I suspect all this who shot
John about the business has to do with NOL's, but God alone
knows how they have this business set up.

While you're talking to him, you might want to mention that
"my girlfriend's mother" is not a universally accepted tax
law authority. I put her right up there with Sally's
cousin's roommate's boyfriend's mother's hairdresser, an
oft-cited source of "I heard..." bogus tax law.

--
Phil Marti
Clarksburg, MD

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My son who is 21, but only earned less than $1,000 last year
and was totally supported by us formed a company, I think it
is a DBA with a girl he knows. The mother of this girl who
is in business loaned them some money for the business. The
business did not make any money, I am not sure it even had
any revenue last year. I know my son did not get paid any
money out of the business. He now claims he was told we
cannot claim him as a dependent, because if we did it would
affect the loss (I assume the money loaned from the girl's
mother) that they could carry forward to next year. I
mentioned this to my accountant who seemed to think that if
he was under 21, did not have income greater than $3,300 and
was supported by us (living at home), then we could/should
claim him and it would have no affect on the business. His
only income last year (less than $1000) was working for this
girl's mother's business, but he still claims that he has to
file himself and that he was told that he cannot be claimed
as a dependent without it affecting the business (by this
girl's mother I think). He doesn't seem to know much about
the business side and it all seems a little suspicious to
me. Does anyone know if there is any reason why we could
not claim him as a dependent or why it would be more
beneficial for him because of their business loss for us not
too

Thanks
Phil

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >