Have you ever written off more than you reported?
 

I just finished doing my taxes and I've written off more than I've reported. I didn't think it would happen, yet it did. The only discrepency is that I stashed away 50% of what I made and I have 0 debt. Would there be a high chance for an audit, and if so, is there any chance that the receipts I have wouldn't be of any use, even if categorized and approved by my CPA?

Have you ever been in this position? I'm stumped and I've recorded every pay stub/paypal transaction I can find. Should I file it like this or hold back on some of the writeoffs? :helpme

Call your accountant and ask. Personally I would not write that much off. :glugglug

hey sherm,

you should be fine. as im not an accountant, I would take the advice of your CPA before anything, but it sounds like youll be fine. They arent going to give you money for your write offs, but you shouldnt have to pay anything.

I heard a stat a few weeks back, don't remember the source, but something like 99% of people that make over 200k a year don't pay any tax. They write off more than they make.

best advice, ask the CPA, thats what he's there for. And worse comes to worst.... you wont go to jail if the irs catches you doing something wrong. It sounds like you have savings, so you should be fine on the off chance they do audit you, and tell you to pay more.

If it is true then what is the down side? They ask and you prove it.

You asked about geting a loan a while ago and that migth suck if you income is negative.

The income isn't negative though. The loan I am working on is a non-stated income loan with 100% financing. The only requirement is that I have 6 months of mortgage in my savings, which I definitly have.

Thanks for the post bcooter. I've heard that as well, and I see numerous people on this board saying that you should never pay taxes if you have a good CPA. I'm assuming that this is what they are referring to.

Is there anybody else who has done this? It seems strange to me, but I've heard people with quite a savings say that they always write off more than they make, with no audits having been done.