|
  |
|
|
Common Errors in Tax Deductions that Get the Attention of the IRS
By Darrin Mish of Law Offices of Darrin Mish
Taxpayers claim for as many tax deductions as they can. This is primarily because of their desire to rid themselves of the IRS or save as much money on taxes. Unfortunately, there are some legal deductions that are commonly abused or that are too easy to abuse that the Audit section of the IRS notices these if anyone claims for them. Although these deductions are provided to taxpayers for some valid reasons, large amounts will certainly alert any IRS agent that something is not right, and as a result, audit will be needed. Everyone is aware that IRS problems come after an audit. Among the most abused deductions are those related to people's claims of having a home office. If people work and do business at home, they think that they can already deduct the total value of the property from their taxes. They simply overlook the criteria that need to be met before anyone can claim for this deduction. If you think you can get away with this, think again as the IRS has a system that automatically examines the accuracy of tax returns. When you deduct the entire amount of the house from your tax return, auditors will have doubts. You should then be ready to get audited or to deal with potential IRS problems. Business owners also believe that they can deduct the total amount of their auto expenses from their taxes when they advertise their company's name on their vehicles. Unfortunately, they can only claim for deductions that are related to the cost of the paint and advertising materials. They may also claim a percentage of their vehicle's auto expenses though. This percentage is equal to the vehicle's mileage for business divided by its total mileage. To illustrate, if your vehicle has a total mileage of 10,000 miles per year and 2,000 of those are used for business, then you're entitled to 20% of your total auto expenses as deduction. Because of this scenario, it is important for you to always have accurate records of your mileage so you will have proof of your claims come IRS audit time. Deductions related to body parts and pets also commonly appear on people's tax returns. Surprisingly, people do attempt to claim for deductions of body parts donated to science. Sadly though, if these donations are for non-profit groups and not 100% of your ownership rights and interests are donated, these are not acceptable as deductions. The IRS doesn't consider donating a body part alone as giving up 100% of your ownership rights or interest since it is only a 'part' of your body. Anyone who tries to deduct either body parts or their pets on their tax returns should also prepare to handle some IRS problems. |
|
 |
|
PLEASE VISIT THE CONTRIBUTOR'S WEBSITE
No reactions yet.
Please login or sign up to rate this intel.
Please login or sign up to add a comment.
The copyright for this content entitled "Common Errors in Tax Deductions that Get the Attention of the IRS" has been specified by the contributor as:
All Rights Reserved
This content may not be copied, distributed or adapted by anyone under any circumstances.
|
|
May, 2012
2008
January, February, March, April, May, June, July, August, September, October, November, December
2009
January, February, March, April, May, June, July, August, September, October, November, December
2010
January, February, March, April, May, June, July, August, September, October, November, December
2011
January, February, March, April, May, June, July, August, September, October, November, December
2012
January, February, March, April, May
|
|
Not a member yet?
Qondio is a powerful network for making it online. If you have a website to
promote, we can help.
Sign up and get in on the action.
|
|
Welcome to Qondio! Discover the awesome power this network can deliver by going to our About page. Or you could skip straight to the Sign Up form.
|
|
