Red flags that might prompt an IRS audit of a wealthy taxpayer
The Internal Revenue Service is auditing wealthy taxpayers at a higher rate than the general population via it Global High Wealth Industry unit.  Among the red flags that could prompt an audit: property-transfer records without corresponding gift-tax returns and high mortgage-interest deductions. Barrons.com (9/17)        Wealthy taxpayers should consult with their CPAs before engaging in property transfers to insure gift tax returns are filed when necessary.  It is also important to remember that the mortgage interest deduction is only available on a primary residence and one second home and that the aggregate amount of mortgage indebtedness may not exceed $1 million.  Interest paid on indebtedness over these limits is non-deductible personal interest.