3 Ways to avoid audit triggers

[Sanjeev Advani]

Ways To Avoid Audit Triggers

Good ol’ Uncle Sam has come to get his yearly paycheck and it can make even a seasoned real estate veteran a little on edge. Here are the top three triggers that you should try to avoid to ensure you dodge an audit.

Home Office Deduction:

Make sure you have a dedicated space used solely for work, this means you can’t by any means use it for anything else. Although it may be tempting to have your kiddos use it as a playroom, stick to it and don't use that room for any other reason.

Rise Of Income Comes Higher Chance Of Audit:

The more you make, the higher chance it is you will be audited, example being if you make $200,000 or more per year your chance of being audited doubles from 0.85% to 1.75% according to the IRS report. It’s so important to keep detailed records of your spendings and what you will be deducting.

Deductions:

Keep your deductions legitimate (obviously) the IRS knows from years of experience that people try to minimize earnings to maximize deductions. Keep up-to date on what the law allows for business owners to deduct for things such as gifts or miscellaneous items.e your marketplace ad