Originally Posted by kgtest
Well I took a stab at my taxes, and then I had my ole man review them as well.
My question is this, I was going to report business income to push me into the 7.60% income tax range for HI. Instead of taking that loss, I feel my audit risk would likely be less if I just included some more of my charitable contributions.
Do you guys feel that donating $4,000 worth of items after selling a 2000sq ft home and relocating to the pacific would be a questionable donation amount to the IRS?
I included the basics that I donated to Good Will (with proof) but I feel I can include the littler things (100s of books, cds, smaller furniture items and household goods that easily total about 1500-2000).
I am curious if this is a better plan than reporting some piddly consulting income.
I would never
shy away from taking legitimate deductions. You have the documentation, so take it and be able to prove it if audited. i agree an audit is not desired, but you should do everything that is legal under the law. Why pay more than you are legally obligated to?
Can your consulting income just be included as "other income"? Avoid the whole Sch C business form. Can you also take home office deduction with the consulting business as another legal deduction?
The advice we're giving you is invaluable, that's why it's free
Experience is a good teacher, but the tuition can get expensive real fast
Semi-Retired 7/1/16: working part-time ( 60%) for now [4/24/17 changed to 80%]
Retired Aug 2, 2017; age 53