I am sure most people don't declare all the cash they make for taxes. The problem that arises is this makes it quite difficult to buy a house. First of all, it would almost be impossible to get a mortgage unless someone helps out and even if you had all the cash, this may potentially put you in the unpleasant situation of getting audited by the tax guys. I think purchasing real estate would help a person save money too because there more motivation to save.
I take precautions like not using credit cards unless I am buying something online because I don't want a record of my spending habits. My question is how do you deal with taxes so you don't have to declare too much income and still be ok on paper to get accepted for mortages while not looking suspicious to the IRS. I have heard of people declaring "losses" for their "business" but I wanted to see if anyone had anything to say about this.



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