tax loopholes

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.

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?

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.

Three years ago, I’d have told you the best tax loopholes are in real estate. Today, I’ve changed my tune. In fact, I’ve got four reasons why business is a better deal when it comes to tax breaks than real estate is.

Three Reasons to Start a Business Today

Have you done your back of the envelope calculation for taxes you’ll owe for 2007? If not, this might be a good week to pull some of that information together. One of the most important questions to answer is whether you’ll be subject to Alternative Minimum Tax. Look for more strategies on how to get around AMT (and how to find out if you’re subject to it) through this Blog.

This month’s online workshops, offered as part of the First Class Lounge, are all about Last Minute Loopholes. These are the things you can do right now, to pay less tax right now.