BrokerageIndustry News

Agents: Are you an IRS audit target?

Real Estate Tax Talk
Published on Mar 30, 2012

Every year, the Internal Revenue Service releases detailed statistics about who got audited the previous year.The stats for 2011, covering 2010 returns -- have recently come out and they paint an unpleasant picture for many real estate professionals -- particularly the successful ones. The percentage of business and nonbusiness returns that got audited in 2011 is shown in the following chart:IRS Audit Rates (2010)   Audit Rate Sole proprietors   Income under $25,000 1.3% $25,000 to $100,000 2.9% $100,000 to $200,000 4.3% $200,000 and more 3.8% Partnerships 0.4%S corporations 0.4% C corporations   Assets under $250,000 0.9% $250,000 to $1 million 1.6% $1 million to $5 million 1.9% $5 million to $10 million 2.6% Nonbusiness Returns ...

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