What Is The Red Flag Deduction For IRS?
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Old 01-11-2007, 05:21 PM   #1
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What Is The Red Flag Deduction For IRS?

Self employed contractors rarely get audited unless a certain deduction
get's out of control. What is it?

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Old 01-11-2007, 05:32 PM   #2
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Re: What Is The Red Flag Deduction For IRS?

I'd say 'entertainment' expenses.
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Old 01-11-2007, 05:54 PM   #3
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Re: What Is The Red Flag Deduction For IRS?

If you have the reciepts to back it up and you are in compliance with the tax code who cares if you are out of the 'norm' on a legitimate deduction? Of course if you do have something to hide...
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Old 01-11-2007, 06:56 PM   #4
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Re: What Is The Red Flag Deduction For IRS?

It's not about hiding anything, this certain deduction just raises eyebrows . Keep guessing
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Old 01-11-2007, 07:11 PM   #5
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Re: What Is The Red Flag Deduction For IRS?

oh, I didn't know this was a game.

Okay, then my guess is deducting hookers as physical therapy.
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Old 01-11-2007, 07:15 PM   #6
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Re: What Is The Red Flag Deduction For IRS?

Yeah, I didn't know it was a game either. I'd also say the 'home office' gets dinged alot.
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Old 01-11-2007, 07:21 PM   #7
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Re: What Is The Red Flag Deduction For IRS?

4 consec yrs loss
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Old 01-11-2007, 08:21 PM   #8
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Re: What Is The Red Flag Deduction For IRS?

Gross profit percentage inconsistant or out of whack from the industry?
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Old 01-11-2007, 08:31 PM   #9
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Re: What Is The Red Flag Deduction For IRS?

real funny guys, not a game just a quiz! Keep guessing and it's not
hookers, entertainment, or gpp inconsistancy.
This is very big deduction we can claim!
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Old 01-11-2007, 08:44 PM   #10
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Re: What Is The Red Flag Deduction For IRS?

Materials!!!!!

what did i win?

This is the flag that can point out cash jobs...
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Old 01-11-2007, 09:57 PM   #11
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Re: What Is The Red Flag Deduction For IRS?

You don't get the prize, not materials. Here's a clue.

vroom vroom!
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Old 01-11-2007, 10:03 PM   #12
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Re: What Is The Red Flag Deduction For IRS?

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You don't get the prize, not materials. Here's a clue.

vroom vroom!

Oh crap, I can't deduct the jet-ski's? Or all the gas for them? There goes the plans for lettering dirt bikes and writing them off!
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Old 01-11-2007, 10:06 PM   #13
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Re: What Is The Red Flag Deduction For IRS?

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You don't get the prize, not materials. Here's a clue.

vroom vroom!
Deducting the cost of a snow blower when living in FL?
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Old 01-11-2007, 10:50 PM   #14
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Re: What Is The Red Flag Deduction For IRS?

Aw crap, it's my supe'd up lawn mower! I knew it!!!!!!
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Old 01-11-2007, 10:57 PM   #15
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Re: What Is The Red Flag Deduction For IRS?

Mike you were the closest. What's it do in the quarter mile?

The high risk IRS tax audit is Automobile Logs/Mileage.
Some contractors claim the miles but don't log them in a
log book properly. This is a common red flag for the IRS.
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Old 01-11-2007, 11:07 PM   #16
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Re: What Is The Red Flag Deduction For IRS?

I could use that mower meet me on PINKS I'll bring my walk behind.

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Aw crap, it's my supe'd up lawn mower! I knew it!!!!!!
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Old 01-11-2007, 11:17 PM   #17
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Re: What Is The Red Flag Deduction For IRS?

I think you might be confused on this. You mean it's a red flag to claim mileage deductions? Or its a red flag not logging them?
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Old 01-11-2007, 11:19 PM   #18
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Re: What Is The Red Flag Deduction For IRS?

They would not know that they are not logged until they audit so this could not Red flag an audit.
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Old 01-12-2007, 12:18 AM   #19
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Re: What Is The Red Flag Deduction For IRS?

The actual mileage deduction is the red flag or vehicles for business use.
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Old 01-12-2007, 06:16 AM   #20
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Re: What Is The Red Flag Deduction For IRS?

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The actual mileage deduction is the red flag or vehicles for business use.
If the vehicle is only used for business use, there's no need for a log. Just beginning of year and end of year odometer readings.
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