Don’t be fooled! You deserve true and factual tax saving knowledge at your fingertips, not Sally Sue’s aunt telling you what she thinks about your write-offs on a random FB post about your irresistible pug.
We’ve all seen a social media comment that seems like tax gold: “you could totally write that off” or “don’t write that off, you will get audited!”. You immediately think I HAVE to do this. But stop. Let’s train your brain to jump to “does this apply to my business? And is this info actually true?”.
Although, I love to promote tax talk (riveting, I know!) I cringe when I see tax hearsay spread like this. Because, not only can you get charged with penalties out the wahzoo for taking incorrect tax positions on your tax return, but you also run the risk of LEAVING MONEY ON THE TABLE.
Why? Because taxes aren’t a one size fits all kind of deal. Your business is unique and your taxes should be too. Just because Pam can’t take the home office deduction in her nursing hospital business, doesn’t mean you can’t take the same deduction as a Life Coach. Again – every business is different and it truly depends on your situation as to what is considered best tax practices. So consult a tax professional before marrying the gossip idea about taxes you saw while scrolling through your timeline.
What’s the biggest rumor I have seen spread recently?
Don’t deduct major expenses because you will surely be audited.
Why is this statement false? You don’t need to skip out on “free money” just because of the chance of getting audited. You purchased the car for business use or remodeled your home office… these are warranted and eligible tax deductions. So act accordingly and cut those taxes!
Let them audit you!
Let’s play devil’s advocate. Let’s say you wrote off those hefty but legit business costs. And the IRS decided to send you a friendly letter questioning these deductions. No problem. Why? Because you have your receipts and your badass registered business to show them proof of those write-offs. And if that is the case, then 3-4 weeks later, you’ll receive a letter in response to your proof saying thanks for your time, keep doing your thing. (Ok maybe they won’t be all nice like that, but you won’t owe them one extra cent. And at the end of the day, that’s all we really care about right?)
Hit reply to let me know if you have more tax rumors you need debunked.
To Tax TRUTHS That Increase Your Bottom Line!