Thursday, April 2, 2009

Risk of Audit

According to the Wall St. Journal, you are more likely to run into the taxman if -

- you make a lot of money.

- take the full mortgage-interest deduction on a refinanced mortgage where you've borrowed to take equity out. This is particularly true in higher-priced housing markets.

- have a major change in income - even if it's a decline.

- big business expenses

- numerous gifts to charity

- reported income that doesn't match numbers on 1099 and W-2 forms

- file Schedule C, profit and loss for business

- big write-offs for hobbies.

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