Tag: tax

When investing in real estate or any other financial endeavor in the United States, it's essential to understand the potential for an IRS audit. An IRS audit is a review of your financial records and tax returns to ensure compliance with tax laws. While audits can be random, some factors may increase the likelihood of being audited. Here are some key points to keep in mind: Accurate and Complete Reporting: Ensure that you accurately report all income and deductions related to your real estate investment activities on your tax returns. Keep detailed records and supporting documentation to substantiate your claims. Rental Income and Expenses: If you own investment properties and receive rental income, accurately report your rental income and expenses. Maintain records of rental agree...