There’s a dangerous myth floating around the Internet. It goes something like this: “If you lose your business records, don’t worry about it. All you have to do is sign an affidavit stating that ‘these are my deductions and I affirm they are correct’ and you’re home free.” If this sounds silly to you, think about how it sounds to the IRS or to a judge! Nope. If you lose … [Read more...]
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If you gamble, don’t bet the IRS is your friend!
Do you enjoy recreational gambling? Uncle Sam doesn’t mind if you do, but he sure wants in on the action! As many gamblers have discovered the hard way, they owe taxes even though they have zero net gambling income. That’s right. Even if you break even after a night at the casino, you can still wind up with a hefty tax bill! How should you play your cards if you’re off … [Read more...]
The smart way to make charitable contributions
When it comes to making charitable contributions, I’ve got good news and bad news. The good news: If you know how to keep the IRS happy, your favorite charity will benefit from your generosity and the government will subsidize your donation with a tax deduction that saves you money. The bad news: Lawmakers have passed more rules that you have to worry about. And the Internet … [Read more...]
Old receipts never die. They just fade away.
You take a client out for a business lunch and when you get back to the office, you file the receipt away just like the IRS wants you to. Then, years down the road the IRS calls you down for an audit and asks you to produce your receipts. You go to your file and discover that the thermal paper receipts your favorite restaurants used have faded and are unreadable. The … [Read more...]
A new way to calculate your home office deduction
If you’re claiming a home-office deduction, you know what pain is. You have to calculate, allocate, and prove all your home-office expenses to Uncle Sam’s satisfaction. But starting on January 1, 2013 the IRS began offering you an optional way to simplify the process and avoid jumping through all those hoops. Want to know if the new method for claiming a home-office … [Read more...]