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| *Vultures Knob>>>Mountain Bike |
Will I get audited for tax year 2005? |
In 2005, when I was in grad school, I had a one-time gig where I worked from home. The income for this was $1200, but I deducted $880 for home office expenses (printer, cell phone). I had to file an amendment to report this $1200 in income. I also deducted $2000 in poker losses and $600 for a mountain bike (I guess Turbotax had a hobby section). My total taxable income that year was around $55,000 as I had a full time job starting May of that year (total income the year before was around $33,000). What are the chances for an IRS audit? Don't be surprised if you get a letter from the IRS questioning some of your deductions. You probably will. You can only deduct poker losses if you itemize, and then only if you showed taxable income for at LEAST that much in gambling winnings. There are a few other requirements too to be able to deduct gambling losses, but those are the main ones. And hobby expenses doesn't mean just that you spent money on a hobby like biking. It means that you made money from your biking - then you could take an expense deduction up to the amount of the money you made. So unless you made over $600 income that you reported for racing that bike, then no, that's not an allowable deduction. If you placed in the Tour de France, then sure, you could - but I'm guessing that for that, the bike would have cost more than $600. If you are going to file another amendment, I'd suggest meeting with a CPA (NOT a company like H&R Block) to help you with it. slim to none Home office deductions raise red flags with the IRS, they would also be interested to see if you have receipts for your gambling losses and weather you ever declared winnings as income. The mountain bike deduction looks shaky to me. Good luck. You can't deduct gambling losses, except up to the amount of gambling winnings you report. Mountain bikes are also not deductible unless you report income from mountain biking. |
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