CDC is cheating on Uncle Sam with the help of Mickey Giles, a so-called CPA.

The depreciation item of CDC?’s Building and Land in the amount of $1,005,985 was an inflated amount in comparison with the amount of $608,160 recorded at the Travis County Appraisal District.

Depreciation is an expense which can be used to reduce the taxable income. When the Cost Basis was inflated, the taxable income would be reduced more than it should be. In other words, the income taxes would be reduced as well. This is called Income Tax Evasion.

Also, according to Internal Revenue Service?’s Publication 946, Page 3 ?– LAND is not a depreciable item. How could a CPA lack of this kind of basic knowledge?

Yesterday, April 25, I sent Mr. Giles an e-mail and inquired about the above item. Today Mr. Giles returned my e-mail and labeled my mail as a ***SPAM***!

How could a CPA behave so unprofessionally?


Mr. Giles,

You are intentionally and knowingly helping CDC in cheating on our beloved Uncle Sam. You are putting your own profession on the line for Gary Bradley and Steve Bartlett. How could you be so unwise?

Lisa

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In a message dated 4/26/2004 8:53:22 AM Central Standard Time, hmgiles@onr.com writes:

Assets are booked at their historical cost basis. The number on the books represents the actual cost of the bulding and land. Hope this helps.

----- Original Message -----
From: LS0909@aol.com
To: hmgiles@onr.com
Sent: 04/25/2004 3:30 PM
Subject: *****SPAM***** Attn: Mickey Giles, CPA

Mickey Giles, CPA
2304 Hancock Drive, #4
Austin, TX 78756

Re: CDC?’s Tax Returns 2000 - 2002

Dear Mr. Giles,

After reviewing the above tax returns, I was puzzled by one item on the Federal Depreciation Report Form 4562 which was Building & Land 1/1/1994 $1,005,985.


Could you explain to me how did you come up with this amount of $1,005,985? According to the Travis County Appraisal District?’s record, the improvement/structure of the building was only $608,160 in the Year of 1994 which should also be the actual cost of the building.

Even with the land of 3.521 acres at the Market Value of $35,210, the total amount should be $643,370, way below your amount of $1,005,985.

And also, to my knowledge, land is not a depreciable item. Could you explain to me how did you come up with this figure of $1,005,985?

Thank you for your attention to this matter.

Sincerely,
Lisa Sun