IRS Reports Tax Gap of $300 Billion

Written by Richard A. Chapo


Continued from page 1

The IRS reported that underreporting was mostly linked to understated income, not overstated deductions. The agency also determined that most ofrepparttar understated income was related to business activities, not wages or investment income.

While these figures may appear shocking, they more or less matchrepparttar 141389 results found in a 1988 study. The numbers are also artificially inflated by individuals that fail to file returns and pay taxes. The IRS is not expected to take any new course of action based on these results.

Richard Chapo is CEO of Business Tax Recovery - Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review.


Rental Property Tax Deductions

Written by Richard A. Chapo


Continued from page 1

3. Paying your accountant and/or lawyer,

4. Mileage for driving to and fromrepparttar property [I said, “No more parties!”]

5. Depreciation ofrepparttar 141388 property,

6. Depreciation of items inrepparttar 141389 property such as washing machines, furniture, etc.

Imaginary Rent Deduction

A few creative property owners have suggested that they should be able to deduct their customary and standard monthly rent ifrepparttar 141390 property is empty. The argument goes, “Ifrepparttar 141391 property is empty, I am not making revenue and should be able to deductrepparttar 141392 $1,500 that I am missing out on.” At first glance, this almost makes sense. Sadly, it doesn’t fly fromrepparttar 141393 perspective ofrepparttar 141394 IRS. Since you are not receiving revenues, your total revenues forrepparttar 141395 year will be reduced byrepparttar 141396 loss rent. You can’t double dip by deductingrepparttar 141397 $1,500 fromrepparttar 141398 already reduced yearly revenues. The only things you can deduct arerepparttar 141399 expenses you incur during this period, and only for so long as you are actively trying to rentrepparttar 141400 place.

Rental properties are a great investment. Even more so if you stay on top of your taxes.

Richard Chapo is CEO of Business Tax Recovery - Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review.


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