THE I.R.S. HAS ADDED MORE AUDITORS. AVOID MAKING COMMON MISTAKES THAT CAN TRIGGER AN AUDIT.
( The following article is reprinted for entertainment only. You should consult with your tax preparer before filing your taxes or for tax advice.)
The April 2nd, 2011 Wall Street Journal warns against 8 Audit Triggers to Know About:
Mortgage Interest Deductions Over $50,000.
Large charitable contributions, especially of non-cash items.
Schedule C business losses of more than 2 years in a row.
Home-buyer tax credit.
Rental Real Estate, especially with losses.
Payouts to subchapter S owners who earn little or no compensation.
Large Deductions in relation to income,especially for business
travel or entertainment.
Home Office - maybe if high.
The final word is that you are best advised to always seek the counsel of
a trained tax professional so that you don't miss important deductions or file
incorrectly. This summary is an excerpt from The Wall Street Journal and not meant
to be taken as tax advice.
For IRA product options call me directly: Randy Taylor 1 (916) 601-5270
FOR SPECIFIC TAX ADVICE:
In the Sacramento Valley I recommend:
George De La Mora at (916) 760-2480 Elk Grove
When it comes to tax audits, more records are generally better than fewer records. If you use your car for business, keep a log of miles driven, the destinations and your business purposes, including the names of people visited if appropriate.
ReplyDeleteGood luck,
Ken Cone, CPA 916-649-1040
Yes Melvin, although Sec. 72 refers to more than one topic. You might be referring to tax treatment of annuity distributions after death. It takes an experienced sales agent to set the ownership up correctly in advance in order to give the survivor the most options at death. First I, Google Sec. 72 and read the different scenarios and then ask your CPA for tax advice. . If the holder has a surviving spouse and this spouse is the designated beneficiary, the annuity can be continued instead of being paid out sooner. This is called a Spousal Continuance. Check with your attorney or CPA; but the code is public.
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