View Single Post
Old 01-28-2011, 02:09 PM   #50 (permalink)
chipmaster
Member
 
chipmaster's Avatar
 
Join Date: Nov 2007
Location: dingleberry lane
Posts: 7,381
Default

Quote:
Originally Posted by kajshack View Post
A CPA once told me that a "home office" deduction is the biggest red flag for any small business. If you want to be audited, please claim that the extra bedroom in your apartment or house is a "home office." Also, setting up a tax shelter by starting a new failing business every three years is another giant flag.
Well I had my business run from my house for over 10 years. At first it was a spare bedroom. I made a lot of money, and itemized my deductions. NEVER did I get audited. As long as you're not cheating, there should not be an issue. The IRS doesn't know it's a bedroom, they just ask for square footage.

I don't consider a failing business a tax shelter. Just because you don't agree with it, does not make it wrong. Can you show me instances of fact in your opinion, or is it just that?

My CPA tells me the biggest red flag is actually CELL PHONE write offs....People claim the entire phone as business, when in fact, it's not.
__________________
"I lied about having a son because I am the son that wanted the card."

"Would you like to touch my monkey? Touch him! Touch my monkey!"
chipmaster is offline   Reply With Quote