We just found out that our evil ex-landlady is being audited by the IRS

[Trumplestiltskin 5,791]

...but I will

[MissStacey 1]

Gotta love Karma!

[Trumplestiltskin 5,791]

Gotta love Karma!

I just received an email from her asking me for copies of the money orders we paid out to her in the way of rent.

I guess she hasn't twigged yet that we actually disclosed the payments to the IRS.

[MissStacey 1]

Gotta love Karma!

I just received an email from her asking me for copies of the money orders we paid out to her in the way of rent.

I guess she hasn't twigged yet that we actually disclosed the payments to the IRS.

So I take it you had a hand in her getting audited?

[Trumplestiltskin 5,791]

Oh yes.

It might also take me a while to find the receipts. If indeed, I can find them at all....

[mawilson 2,133]

I guess she hasn't twigged yet that we actually disclosed the payments to the IRS.

You did? Because you're a freelance contractor using your home for business?

[MissStacey 1]

Oh yes.

It might also take me a while to find the receipts. If indeed, I can find them at all....

You sneaky b@stard.

You rock!

[Hilarious Clinton 452]

I wouldn't gloat about someone getting an audit. Karma.. ya know.

[Trumplestiltskin 5,791]

I guess she hasn't twigged yet that we actually disclosed the payments to the IRS.

You did? Because you're a freelance contractor using your home for business?

I believe we submitted a letter. We didn't claim it as an exemption or anything like that.

I wouldn't gloat about someone getting an audit. Karma.. ya know.

Oh we had all the bad karma from the lady that anyone could want.

[mawilson 2,133]

Oh yes.

It might also take me a while to find the receipts. If indeed, I can find them at all....

Oh, in that case you will probably get the "rat fee" of 10-15% of whatever they recover from her in unpaid taxes (IRS Publication 733).

[Trumplestiltskin 5,791]

Oh yes.

It might also take me a while to find the receipts. If indeed, I can find them at all....

Oh, in that case you will probably get the "rat fee" of 10-15% of whatever they recover from her in unpaid taxes (IRS Publication 733).

She didn't declare $12,000. That's going to hurt.

[mawilson 2,133]

I guess she hasn't twigged yet that we actually disclosed the payments to the IRS.

You did? Because you're a freelance contractor using your home for business?

I believe we submitted a letter. We didn't claim it as an exemption or anything like that.

Just something to consider in the future -- if you're a freelance writer working from home,

you should be able to deduct a part of your rent and household costs (trash removal, gas,

electricity, etc.) as business expenses.

[Trumplestiltskin 5,791]

I guess she hasn't twigged yet that we actually disclosed the payments to the IRS.

You did? Because you're a freelance contractor using your home for business?

I believe we submitted a letter. We didn't claim it as an exemption or anything like that.

Just something to consider in the future -- if you're a freelance writer working from home,

you should be able to deduct a part of your rent and household costs (trash removal, gas,

electricity, etc.) as business expenses.

Yeah we were looking into doing itemised deductions for this years tax return - but when we worked it out it didn't make much of a difference.

[mawilson 2,133]

Yeah we were looking into doing itemised deductions for this years tax return - but when we worked it out it didn't make much of a difference.

Actually, you don't need to itemise to deduct business expenses.

You can claim the standard deduction and file a Schedule C in addition to your 1040

to report income or loss from your business activities. You can then use Form 8829

to figure your home office deduction and report this deduction on line 30 of

Schedule C, Form 1040.

You cannot use your home office expenses to create a loss, but you can reduce your

profit to zero by using the home office deduction.

If you're a freelancer (1099), you can deduct lots and lots of things (business dinners,

vehicle costs, etc etc)

[Trumplestiltskin 5,791]

I think all we claimed this time is depreciation on the computer.