Tax Audit - Bed and Breakfasts Industry Edition Ebook

In the time it takes to read 40 pages, you will know absolutely everything the Internal Revenue Service knows about the Bed and Breakfast industry and will use when performing a tax audit.

The Internal Revenue Service audit agent will also be paying close attention to any other services or products offered that are likely to produce additional income. Some of the more common products and services they will be looking for include: gift shops, taxi service, jams and jellies, homemade crafts, wines, and other items for sale to the guests. Some taxpayers misunderstand how much of the residence can be depreciated and what expenses can be deducted. Another common issue they will investigate is personal use and/or expenses, especially as it pertains to food, utilities and auto expenses. Are you prepared with the appropriate documentation to back up your answers to the following questions?

• Do you sell items such as jams, jellies, maps, wine, books, etc.?
• Do you receive tips or other gratuities?
• Do you ever barter for goods or services?
• Do you charge for cancelled reservations?
• Do you charge an extra fee if guests have pets?
• Do you allow children to stay free of charge?

TABLE OF CONTENTS

• OVERVIEW...
• THIRD PARTY INFORMATION
• RESEARCH
• PROCEDURES
• LIST OF ISSUES
• BIBLIOGRAPHY
• AUDIT QUESTIONS
• ARTICLES AND STATISTICS