tax deductions

Now that I’m back doing tax strategies again, I’m seeing a lot of tax plans people have tried or heard about from a friend, neighbor, and so on. The problem is that a truly effective tax strategy is, by its very nature, personalized to you. In this week’s online workshop I’m talking about the 5 biggest mistakes I’m seeing people make so far this year.

Okay … next up on the 300+ Deduction list is Accounts Receivable … i.e., those accounts that you know you don’t have a hope of receiving.

In case you missed it, here’s the email I sent out this week to my database. If you’re the type who wants to know how those other guys get all the write-offs, then you won’t want to miss this post!

Have you ever had one of those times in your life when just everything worked? I don’t know about you, but I just hang on to those times in my mind because I want to recreate them again, and again.

One of those special times was at the March 2008 San Diego Advanced Pre-emptive Tax Strategy Training. It was the perfect combination of brand new, cutting edge strategies, enthusiastic mastermind sessions and best of all, people who wanted to learn and help each other take massive action to make more money and pay less tax.

This time of year we’re all a little stressed trying to get our final accounting for the year calculated. And, as a result, many people miss a couple of tax breaks that can add up to big deductions, if you do the accounting right. Here are two breaks you don’t want to miss.

One thing that still makes me sad is hearing people talk about “loopholes” as a code word for something dodgy or illegal.

Nothing could be further from the truth! Tax loopholes are consciously and actively created by governments in the US and around the world as a way to stimulate the economy. If they were illegal, immoral or unethical, why would the government create them in the first place?

Most tax loopholes create one of two things: either a tax deduction, or a tax credit. Do you know the difference between the two? More importantly, do you know how to use that difference to your advantage in your tax-planning?

It’s a question I’ll hear every seminar: “How can I write off _________?” It’s a great question because it’s not an easy yes/no question, like “Can I write off ______?” would be. (Easy answer on that would be “no” because then your CPA doesn’t have to think anymore!)

The answer is my standard “It depends.” But, this time I took it a step further in a recent thread on the Tax Loopholes forum. If you haven’t already gone to the forum to see what’s new for the First Class Lounge (First Class Lounge Forum), you’re going to want to visit soon.

Every so often someone asks me if “Tax Loopholes” are really legal, or rather, they’re more likely to ask if they can use them “wink wink” and really get away with them.

Granted … the name “TaxLoopholes” sounds like it might be something shady. But, in actuality, tax loopholes are anything BUT a scam.

A business, hands down, is one of the best way to save on taxes. But, that doesn’t mean that you can simply declare “I have a business” and get thousands of newly found deductions.

First, you must prove that you have a business. You also need to prove that the deductions are ordinary and necessary to the production of income. And, finally, you need to be able to prove that you paid for the expense.

When Does Your Hobby Become a Business?

It’s the beginning of a new year, and for a lot of people, it’s also the beginning of a new business venture. Get off to a great start by finding all the deductions available to you!

Where are Your Deductions Hiding?

I came across an interesting Tax Court case recently that I thought I’d share with you. The gist of this case boils down to answering the question: Can you take a deduction for home repairs that are so poorly done they constitute the theft by the contractor?