Rosenberg - Deduct everything!: save money with hundreds of legal tax breaks, credits, write-offs, and loopholes

EVA ROSENBERG, EA

Humanix Books

Deduct Everything

Copyright 2016 by Eva Rosenberg

All rights reserved

Humanix Books, P.O. Box 20989, West Palm Beach, FL 33416, USA

Library of Congress Cataloging-in-Publication Data

Names: Rosenberg, Eva, author.

Title: Deduct everything: save money with hundreds of legal tax breaks, credits, write-offs, and loopholes / Eva Rosenberg.

Description: Boca Raton, Florida: Humanix Books, 2016.

Identifiers: LCCN 2015047996 (print) | LCCN 2015049893 (ebook) | ISBN 9781630060473 (paperback) | ISBN 9781630060480 (Paperback)

Subjects: LCSH: Finance, Personal. | BISAC: BUSINESS & ECONOMICS / Personal Finance / Money Management. | BUSINESS & ECONOMICS / Small Business. |BUSINESS & ECONOMICS / Taxation / Small Business.

Classification: LCC HG179 .R674 2016 (print) | LCC HG179 (ebook) | DDC 343.7305/23dc23

LC record available at http://lccn.loc.gov/2015047996

No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any other information storage and retrieval system, without written permission from the publisher.

Interior Design: Scribe

Humanix Books is a division of Humanix Publishing, LLC. Its trademark, consisting of the words Humanix is registered in the Patent and Trademark Office and in other countries.

Disclaimer: The information presented in this book is meant to be used for general resource purposes only; it is not intended as specific financial advice for any individual and should not substitute financial advice from a finance professional.

ISBN: 978-1-63006-047-3 (Paperback)

ISBN: 978-1-63006-048-0 (E-book)

F OR MORE THAN A decade, I have been known as the TaxMamathe Dear Abby of the tax worldfielding questions from Americans and visa holders the world over through my website, www.TaxMama.com. Its been a lot of fun. The questions people ask, the glimpses into peoples lives, their ideas and perspectives are fascinating. I am privileged to be trusted with such intimate details. Some people have been part of TaxMamas family from the beginning. And some pitch in and help out, providing insights and tips from their own rich store of knowledge.

The fact is the Internal Revenue Code (IRC) is bloated. According to Nina Olson, your National Taxpayer Advocate, by 2012, the IRC had grown beyond four million wordsmore than double the size of the IRC in 2001. Imagine how much its grown in the last three or four years! In fact, just as we were about to publish this book, Congress passed the Protecting for more details.

Absolutely no one can be expected to know everything in the Tax Code. Not you, not your tax professional (or tax expert), not the IRSno one. Weve all heard the phrase, Ignorance of the law is no excuse. So whats the secret to getting it right?

TaxMamas Secret is R & RReliable sources and Research. We know who to ask. We know where to look.

My goal is to teach you those two things: who to ask and where to look for accurate answers.

I want the tax process to be a fun experience for you, one that challenges you to use your wits to dream up your own ideas on how to beat the system. Legally, of course! Sometimes your far-fetched ideas might actually turn out to be the perfect solution. (In fact, I won my Dow Jones column by trying to sell a far-fetched idea a reader had sent mean idea that turned out to actually work! More about that in A Few Last Words.)

Along the way, youll get tips, ideas, and strategies that you can implement immediately.

Well try to make the book as user friendly as possible, with a Resources section that will take you directly to the information you need.

First, I want to offer you my hard-won insights and truisms to help guide you throughout your tax journey.

Philosophy about taxes: Lower taxes, achieved ethically = higher profits and increased joy.

Mantra about tax return records: Document, document, document! In other words, get a backup for everything!

Philosophy about people in general: Theres never a bad time to be nice to someone. Theres never a bad time to say something nice to someone. In fact, say or write something nice to someone right now!

Philosophy about dealing with IRS and state officials: Always be gracious and polite to IRS, state, and other tax officials. They can either help you or do you great harm. While its illegal to give gifts to government officials, you are welcome to write a letter of commendation to thank them for helping you. Send it to them with a copy for their superiors. These letters go into the employees file and help with promotions, commendations, and other advancements. Besides, it always feels good to get a compliment.

Philosophy about getting even: Whats the best way to get even with someone who is really mean and nasty? Smile and be super nice to them at all times. It will totally confound them.

Philosophy about burnout: Sometimes, even when you love doing something, too much of a good thing becomes a burden. Take a break.

Philosophy about tax filing when you think you have no taxable income: Always file a tax return whether you need to or not. Why? Because TaxMama said so. You never know what future trouble you will forestall. If you dont file, you will find out in about five yearsand it will be hell. If you do file, you will never know the trouble youve missed.

Philosophy about not filing when you have refunds due: Never leave money on the table. Not filing because you have a refund coming and will collect it later is... how can I say this diplomatically? I cant. Its stupid! After three years, you lose your refund. I actually had a client who lost more than $100,000 because he didnt file his tax return for more than ten years and had five-figure refunds each year. It can happen to you, too!

Philosophy about caregivers who dont want to report their income: If a childcare facility is cheating on their taxes and lying to the IRS, do you really want them being your childrens caregivers? If they refuse to provide a Social Security number to you, what will they teach your children about right and wrong?

Philosophy about someone who wants to work outside a system: If someone is ripping off their suppliers or marketers (like going around AirBnBs rules, or house cleaners who want you to hire them without their agency), can you trust them not to cheat you, too?

Philosophy about extending credit to someone who doesnt pay proper taxes: If someone has avoided paying the IRS for years, do you really think they will be afraid of your bill collections efforts?

Philosophy about finding treasure: Search the Unclaimed Money site at least once a year (https://www.usa.gov/unclaimed-money). You never know what treasures you will find. I found money for my cousin that had been left unclaimed by her deceased mother.

This book is designed to give you some tips you probably wont find anywhere else.

It isnt intended to regurgitate the tax laws and deductions that you already know and are, quite frankly, bored with.

I try not to use any acronyms in a chapter without explaining it in that chapter. Once explained in the chapter, I will probably use it relentlessly.