Think twice before you claim these deductions.
, says that taking an auto expense deduction is also likely to catch the eye of the IRS."Claiming large amounts of auto expenses is a big red flag for getting audited, especially if there is hardly any income involved," she previously toldClaiming an auto deduction is especially suspicious since it is often used incorrectly."Auto expenses are only deductible for amounts used for business, not for commuting or other activities," Stranger explains.
And you must be able to back up the expenses you report."The law requires that you substantiate your expenses by adequate records or by sufficient evidence to support your own statement," the IRS warns.But if you do qualify for a home office or auto expense deduction, you should still take it.and the CEO at Tax Crisis Institute, says taxpayers can end up getting their tax refunds delayed by failing to claim all of their deductions.