Save Those Receipts and Documentation! – A little organization now can save money during an audit
Save Those Receipts and Documentation! – A little organization now can save money during an audit Too often during the course of an audit, the auditor throws out valid deductions. Not because they did not occur, but soley because you did not provide adequate documentation. Here are ideas to help solve this problem. When it comes to taking qualified deductions on your Federal Tax return three things must happen. First, you must recognize that an expense might be deductible on your tax return. Second, you must keep a record of the expense in an organized fashion. Third, you must have
Taxable or Not Taxable? – Some of these items may surprise you.
Taxable or Not Taxable? – Some of these items may surprise you. Here are nine areas of income that are often questioned by taxpayers regarding their taxability. Some items are, others are not. Sometimes the taxable nature of an item depends on other things. Here is what you need to know. There are a number of areas in the tax code that cause confusion as to the taxability of money received. Here are some of the most common areas of confusion. Alimony. Alimony is taxable to the person who receives it and deductible to the person who pays it. Special
Understanding Tax Terms: AFRs
Understanding Tax Terms: AFRs The IRS often sees the transfer of funds as a loan, whether there is a loan agreement or not. This also means there is an implied term and interest payment. When the IRS says a transaction is a loan, what interest rate do they use? Enter AFRs. Here is what you need to know. Your grandson needs a car, but cannot afford the payments. As a favor, you provide the $25,000 to purchase the car. You tell your grandson to pay you back when he can, but there is no loan document. The IRS sees this