Top 3: Second Homes, IRS Audits, & Retirement Test DrivesIRC Top 3 Taxes Retirement Saving
In case you missed it, here are three things you should know this week...
1.) Get the Most Out of a Second Home
- Owning two homes can be a headache—a headache worth having, to be sure, but a headache nonetheless.
- Fortunately, there are ways to make a second home more enjoyable and less burdensome. The key is to plan for the unexpected and take advantage of the many ways your second home can reward you emotionally and financially. A touch of new technology also helps.
2.) IRS Audits 101
- The Internal Revenue Service audits tax returns every year—striking fear in the hearts of many whose accidental or deliberate errors may have led them to underpay the U.S. Treasury.
- While the prospect can be terrifying, very few returns are actually audited and many audits are resolved through correspondence. The volume of IRS audits has declined in recent years to 933,785 in 2017 from 1.56 million in 2011, according to IRS data. Some audits even result in a refund. Many, of course, result in tax liabilities.
- Still, it never hurts to prepare taxes with care, save records and understand changing tax laws (or work with professionals who do) so your returns will be less likely to raise flags.
- Visit The Wall Street Journal for more facts on the IRS.
3.) Test Drive Retirement
- If at all possible, you should put your retirement plans through a test-drive.
- Granted, this might sound strange. Most people, seemingly, don’t need to “practice” retiring. (After all, what’s so difficult about not working?) In truth, though, retirement probably will come as a shock to your wallet and lifestyle, and if you can test your planned budget and daily routines before walking away from the office, the transition should be easier.