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Still haven't filed your taxes.
Well we've got -- It's so you're not alone millions wait till the last minute to file so joining me with helpful tips we want to prevent audits.
Dominique some bella present that -- diversified financial consultants.
And rich cop managing director worked well -- financial planning and Richard what do you who said we have to bring on to -- -- to -- you have to -- OK that was not me I don't say stuff like that that rich set it.
So let's start with some of these IRS red flags -- -- You know some of the things you have to watch out fours under reporting of income one of the things it's very easy to find is if you didn't failure to really worry every import W -- 1099 income it's reported to the IRS that's one of the large big flags.
-- other thing is taken excessive itemized deductions particularly charitable deductions.
Mortgage interest deduction which I've seen letters from the IRS on this.
Dominant this charitable donations thing as a governments can really tight about this they want it and reduce it as much as possible.
What do you say about that -- that -- people -- have to be particularly careful this year with their charitable deductions.
I think in general with the Irish tracks what your itemized deductions are based in -- amount of income you have so they have a reasonable number.
Of what people do for Iraq personal expenses and reimburse them play expenses charitable deductions and like that.
-- if you start to exceed what is at.
Average for your income group.
You're at the very least and hoping so paranoid and possibly have some of them looking at that they're looking at how much she should be getting in terms of -- charity in appear exceeding that they're gonna come after you.
You stay aggressive business deductions rich got.
How aggressive its aggressive what's well I -- and what doesn't.
You know -- yeah I would say the smell test -- don't you take about him in the small businesses are really.
You know you have to have ordinary necessary expenses relative to your -- business there have been people -- are taking excessive travel expenses.
Personal travel find its way to the businesses short term meals and entertainment finds its way to the business return that isn't truly related to the business.
Gym memberships to and country club.
Memberships there's plenty of things that are more personal nature that make its way ticket -- -- -- membership for selling your.
-- -- you know I didn't know could -- -- easy answer is no Dominic I'd see you want to give me a couple of specific examples of things it really likes the IRS app.
If you have a small business particularly one that tends to operate on cash.
Get a small car small restaurant maybe -- hair salon they're more likely to looking you know they are I've -- -- right.
-- look at it what happens is every single business when it filed a tax return uses a business code to tell the -- what kind of business you don't.
The -- actually tracks the kinds of expenses that business does so if you -- -- hair salon -- -- taking a trip to Hawaii for a seminar -- open yourself up to that look -- look at that and say is that normal is that customary is that appropriate so you have to look at the expenses for your business they have to be appropriate.
And deduct the.
Tell you about coming sincerely -- -- -- get after tax professional or or is there a wait and now well I mean there's good if there's different dumb ways that the IRS as well as the states come in and target certain industries and they know.
What type of costs are associated with that industry so you're showing a very low income amount.
Get your expenses to buy as I was saying earlier -- -- you know cheese and sauce in the pizzeria business which is a cash business.
Is totally you know a million dollars in in cheese cost but you're showing a 100000 dollars and income -- back -- believe or not how much cheese is on each pizza.
And how much each slice sells for -- that hard but they can back into -- I think that they -- they are that -- doctor Jerry yeah they've actually done.
Absolutely I think now I you know I wonder they're models are right I mean that's one of my questions at the end of the day are they really that accurate.
It doesn't matter necessarily if -- that actor what it is that the gives them at least enough to investigate and then they can there they don't and then they have -- now they have as we were talking earlier.
Which is crazy.
I would talk home office deduction.
-- -- you this is like one -- -- though is you know.
Red flag in front of a bowl you've got your -- -- this you're writing off everything.
Taxes property taxes your utility bill the space in your house heating air conditioning what else they care again.
This is really a legitimate.
This will having an age where you know you are working at your house in companies actually want you -- work -- Atlanta is a legitimate adoption.
The problem -- again when people decided need to be paid -- about it.
If you using one roaming your home as an office you can't deduct three quarters of the utility bills so you have to -- -- -- -- and what that represents 10% of your house that you should take only -- percent of electric bell.
10% of a few -- -- satirist so it's -- people out of bounds and really try to take advantage of the situation.
I think where they'll really open themselves up to problems -- silent legitimate deduction.
-- and one quick thing for 2013 speaking of the home business deduction.
There's a new rule out for 2013 so that if people don't want to go through the major calculation there is a form now.
That allows you to hit it and I think the maximum is 15100 credit for 2013 not 2012.
-- hundred hours 15100 that's.
That's it so if it's going to be more or little -- -- -- I would do so I have my halo well then you have to do the long form and actually support probably it deduction.
It takes a lot of time with I would my husband and I have had to do that its its owner has -- and yeah.
The whole process welcome to my world.
-- mentioned -- thanks for coming on tonight you guys are great and I know a lot of people out there got the information they needed thank PO.
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