Fresh Takes on The Numbers That Run Behind Your Biz + Life
DESi’s Digest
the oddest tax deductions the IRS has granted (HESS v. COMMISSIONER)
Most Americans know charitable gifts, retirement contributions, student loan and mortgage interest are tax-deductible, but what about cosmetic surgery?
It depends.
Over the years, the IRS has allowed some unusual tax deductions, but the circumstances were very specific. Basically, taxpayers must prove the items were necessary or a legitimate business expense. They can’t be personal expenses.
Here are examples of extraordinary deductions taxpayers have asked for and received from the IRS. It’s important to note that even though these were approved, we recommend you consult with a professional before pursuing any offbeat deductions.
How to Form an LLC in Oklahoma in 8 No-Nonsense Steps
Wondering how to form an LLC in Oklahoma? We'll walk you through the business formation process, from choosing your name to celebrating, in 8 steps.
how does the IRS decide who to audit?
In the days of "big data," the IRS uses an algorithm to measure all kinds of data on your tax return, and compare it to others'. The IRS knows your field, and they know what a "normal" range of expenses is on any given category on your tax return. So, when your numbers pop out of that normal range, your tax return gets a flag.
In this week's podcast episode, I'm talking about the fascinating way that the IRS identifies taxpayers for audit. And how you can see what they're seeing, and keep yourself protected.
I'm also teaching you which category on your deductions is actually beneficial to you and which categories you should not treat as a "dumping ground".
It is a little tax-nerdy, but very interesting, and will keep you protected.
