We moved from Hawaii to Washington state due to my husbands job. My parents also moved from Hawaii to Washington at the same time, so we rented a large container to ship all of our belongings in and combined our stuff. Since my parents have a credit card to pay the $11,000.00 bill, they paid for it up front and I later gave them $$$ to pay for most of my share which came out to aprox. $2,000.00. The problem is that the moving receipt is in their name and I gave them payments in cash and have no proof of it. What do I do if I get audited for this? Can I have my parents write a note saying that I gave them money? Should I write a check in their name and pretend that they cashed it? What should I do?
2007-03-12 11:48:49 · 5 answers · asked by babofa 2 in Business & Finance ➔ Taxes ➔ United States
If I do write a fake check, are they going to want to see my parents bank statement??
2007-03-12 11:55:15 · update #1
That shouldn't be a problem. I would go ahead and claim moving expenses and if there is a question about it, just have your parents write a letter stating why the bill is in their name.
2007-03-12 11:53:46 · answer #1 · answered by David L 6 · 4⤊ 0⤋
IF you write them a check, have them cash it and return your cash payment. Then you have an actual canceled check. A check not processed by the bank would be useless in a audit anyway. The auditor wouldn't take 2 seconds to determine it had never been cashed. A receipt from your parents won't hurt, but if the IRS is questioning the deduction, they may not believe a receipt from a close relative.
2007-03-12 12:04:05 · answer #2 · answered by STEVEN F 7 · 0⤊ 3⤋
shifting costs do no longer seem on time table A as an itemized deduction. shifting costs are variations, which potential they are deducted from gross earnings to return up with adjusted gross earnings. in case you do no longer qualify for shifting costs below the time AND distance try, then you certainly don't get to deduct any of it. you are able to no longer shift costs pertaining to to a circulate to be claimed on time table A as something else.
2016-11-24 23:14:00 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Have your parents write you a receipt, just in case you need it for auditing purposes later.
2007-03-12 11:52:31 · answer #4 · answered by Venita Peyton 6 · 2⤊ 1⤋
Chances are you will be fine, but to ease your mind just have your parents write you out a reciept and it will be perfectly legal.
2007-03-12 11:56:26 · answer #5 · answered by Anita G 5 · 4⤊ 0⤋