Most everyone knows that there are certain common parameters that make you more likely to get audited by the IRS, such as:
making more than $100,000
having low income and high expenses
carrying inventory
claiming high deductions for meals and entertainment, travel, and car expenses
being self-employed and/or claiming a home office
holding a mostly cash-income job, such as waiting tables or bartending
But did you know that the IRS actually uses a very strict formula to determine most of the tax returns that get scrutinized? It’s called the “DIF Score,” (Discriminate Income Function) and while the actual formula is very closely guarded secret, … Read more »
If you’re like me and you have the smallest of small businesses (i.e. the home office), you’re probably hoping to take a nice, juicy deduction for the portion of your rent and utilities that goes towards supporting your home office. Do you want the good news or the bad news first?
Alright, first the bad news: if the income you made working for yourself is less than your total expenses for the year, including the home office portion of your rent and utilities, you cannot take this deduction. In other words, the IRS will not let you deduct the … Read more »
Elvis, my incredibly annoying but also really cute office mate. He’s a sparrow-sized species of parrot called the “green-rump parrotlet.” He talks (like a tiny robot) and whistles and does all kinds of other normal parrot things, but he also really likes to tunnel, pull pins out of pincushions (he has his own, now), and push stuff around with his head until it falls off the table.
Here he is shredding some fabric scraps I gave him to keep him away from my prototypes. It didn’t work for very long.
As much … Read more »
FiledUncategorized
Date3.06.2008
