1. One of your clients, Sally Macron, is a wealthy lawyer. She is planning to purchase some rental properties. She expects that the depreciation deductions on these properties will produce losses that can offset some of the income from her law practice. Advise Sally.

2. Bill Wallace is a CPA practicing in Greeley, CO. One of his clients in Denver has an overdue invoice of $5,000. On December 30, the client calls Bill and tells him that he has a check for him in that amount, and that Bill can pick it up at the clients office. Bill tells him to send the check in the mail. What tax issue is raised by these facts?