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New York Times Best selling author, radio show host, TVs TurnAround King Grant Cardone discusses Taxes, money, deductions, sales, business, finance and career. Cardone talks about how to respond to a tax audit and deductions that every family and business should be looking at.
Cardone Zone IRS and Taxes
Did You know
1) Claim a hotel expense on a business trip and its 50% deductible -- Claim it as lodging and its 100% deductible.
2) Strategic Planning Meeting held at a restaurant with company is 100% deductible where if It was business meal with a client its only 50%.
3) Coffee and Donuts for Friday sales meetings filed as meals at 50% but as biz meeting its 100%
4. Deduct Car for Business Use
If you are a freelancer/self-employed individual, you can deduct the cost of business use, even if it's on your personal vehicle.
Best method sole proprietorship rather than as a legal business structure such as a corporation. The key here is to separate business use from personal use, which can be done by using some sort of tracking mechanism like CarCheckup, a small device which plugs into your car for business trips and then uploads mileage information and other data to your computer when you plug it in via USB.
Why am I Telling you this-----I am under audit again -----
Big Bad IRS is costing me time and money hunting for tax revenue...
First it was the companies -- now its my personal returns.
Here are the IRS Audit Red Flags called the
The Dirty Dozen
Some tax returns are eyeballed others ignored?
IRS audits 1% + of all individual tax returns annually.
IRS does not have enough personnel and resources to examine each and every tax return filed during a year.
1) Chances are Low
2) Know the deductions
3) Be aggressive
4) Don't fear an audit unless you are fudging
RED flags that increase your chances of drawing unwanted attention from the IRS.
1. Making too much money
Incomes of $200,000 or higher had an audit rate of 3.93%, or one out of slightly more than every 25 returns.
Report $1 million or more of income? 12.5%.
2. Failing to report all taxable income
The IRS gets copies of all 1099s and W-2s you receive, so make sure you report all required income on your return.
3. Taking large charitable deductions
We all know that charitable contributions are a great write-off and help you feel all warm and fuzzy inside. However, if your charitable deductions are disproportionately large compared with your income, it raises a red flag.
4. Claiming the home office deduction
If you qualify, you can deduct a percentage of your rent, real estate taxes, utilities, phone bills, insurance and other costs that are properly allocated to the home office. That's a great deal. However, to take this write-off, you must use the space exclusively and regularly as your principal place of business.
"Exclusive use" means that a specific area of the home is used only for trade or business, not also for the family to watch TV at night. Don't be afraid to take the home office deduction if you're entitled to it
5. Claiming rental losses
Normally, the passive loss rules prevent the deduction of rental real estate losses. But there are two important exceptions. If you actively participate in the renting of your property, you can deduct up to $25,000 of loss against your other income. But this $25,000 allowance phases out as adjusted gross income exceeds $100,000 and disappears entirely once your AGI reaches $150,000.
6. Deducting business meals, travel and entertainment
Read more at
7. Claiming 100% business use of a vehicle
8. Writing off a loss for a hobby activity
9. Running a cash business
10. Failing to report a foreign bank account
12. Taking higher-than-average deductions