IRS Audit Prevention Tips
Thursday, April 05
There are many ways to reduce your chances of being audited by the IRS. As we've discussed in previous articles, the IRS has red flags for certain industries and tax filing behavior. Unfortunately, real estate investors and business owners stand a far greater chance of being audited than their sa...
IRS Court Cases Featuring Real Estate Investors
Friday, March 23
Here are some IRS court cases featuring real estate investors that show how important tax documentation and preparation is to protect you from huge penalties.Real estate activities are considered passive by default. Passive losses, of course, may generally only offset passive income.Unless, that ...
Know Your Rights with IRS and How to Appeal an Audit
Friday, March 16
In part 3 of our series on audit-proofing, we will explore what tax expert, Al Aiello advises investors to do to get over the dreaded FEAR of an audit and to know your rights in case you are ever audited.1. Taxpayers' Rights. As a taxpayer you have rights, which have been expanded under The IRS R...
Don't Fear the IRS!
Friday, March 09
Misconceptions and Audit Proofing Strategies You know that fear. It's the one that makes everyone paranoid around tax filing time. So many people let the FEAR of the IRS cause them to even overpay their taxes. The IRS's biggest weapon is FEAR, but this should not stop you from taking a legally ag...
Are you in Danger of an IRS Audit?
Friday, March 02
Approximately 1.5% of all taxpayers are audited every year. Despite this relatively small number, the IRS still causes many people to shake in their boots when contemplating the chance of an audit. The odds are low that you would be picked for an IRS audit because the IRS does not have enoug...
Avoid These Ten Potential Real Estate Tax Traps
Monday, February 27
Mistake #1: Not understanding real estate passive losses There are limits on the amount of real estate passive loss deductions you can take. You need to meet some minimum hour requirements of activity in the property. And if you are completely passive with the property, such as with a time share,...