Help!! Audited on my 2021 Taxes over baseball cards!!

bobbyw8469 · #1 10-27-2024, 11:18 AM

Quote:

Originally Posted by bnorth

I have been audited by everyone who can and yes it does suck. I was lucky and had a real business and accountants who took care of everything so it wasn't too bad. Can't imagine how messed up your ordeal with the IRS is.

Did you try the hobby approach?

I paid a tax person and she redid my entire taxes. She took out the deductions of my home office to give the IRS a "win".

OhioLawyerF5 · #2 10-27-2024, 03:28 PM

Quote:

Originally Posted by bobbyw8469

I paid a tax person and she redid my entire taxes. She took out the deductions of my home office to give the IRS a "win".

She took out the home office deductions because you yourself said you are a hobbyist, yet filed a schedule C and took deductions only a dealer is allowed to take. People need to hire a CPA BEFORE they file taxes, not after they get audited.

bnorth · #3 10-27-2024, 03:30 PM

Quote:

Originally Posted by bobbyw8469

I paid a tax person and she redid my entire taxes. She took out the deductions of my home office to give the IRS a "win".

Glad you hired a professional. Even when I ran a real tax paying construction business out of my home my accountant wouldn't write off "home office" expenses. He said it always causes problems and the little I might save wouldn't be worth the trouble if audited.

Do you still sell and if so have you decided to became a real business or still trying the "hobby" route. I am interested in the differences if you decided to go the business route.

e107collector · #4 10-27-2024, 03:34 PM

Schedule Cs are highly scrutinized and are usually audited the most out of all the returns we have filed out of our firm. Odds are they will get you on something. Very few audits end in a no adjustment.

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