tax deduction

Over the years, I’ve found that people often forget about some of the simplest tax deduction. So, I made a list of over 300 tax deductions. The list is part of “Loopholes of the Rich”, if you want to get the list fast. Otherwise, I hope you look forward to a discussion of these deductions over the next few months.

There are a couple of options for write-offs when you buy new equipment for your business. Well, for 2008, there are actually two options:

(1) Take a Section 179 for an immediate write-off of all or part of the purchase price, or

(2) Depreciate the property.

Three years ago the Real Estate Professional status was one of the best loopholes available. Now, it’s a red flag for an IRS audit. Learn about the new climate for real estate loopholes in this week’s Online Workshop, available exclusively for First Class Lounge members.

There’s nothing like misunderstanding tax loopholes to ruin a perfectly good day … or a perfectly good tax strategy! But it happens all the time, usually at a cost to the taxpayer in question. For example, I had a client recently whose misunderstanding wound up tacking another $25,000 onto her tax bill!

I love the Medical Reimbursement plans. These work only for Sole Proprietorships (or LLCs taxed as Sole Proprietorships) and C Corporations.

They differ from a “Cafeteria Plan” that allows you to put money aside before taxes from your pay check. The Medical Reimbursement plan allows you to reimburse for medical expenses as you incur them.

A recent court case denied the deduction for a Sole Proprietorship. What did he do wrong? And, even more importantly, how can you make sure you don’t make the same mistake?