Have any little known deductions? Know of a loop hole that could benefit the masses? Have any hints that could help someone out? Did your accountant/tax pro tell you something that you think everyone should know?

POST THEM HERE!!!

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I'll start it off....


My wife is a teacher and is buying all kinds of things throughout the entire year to better herself within her profession and aid her students to achieve higher goals. All of her expenses for materials and such are able to be deducted (if you itemize). Heck, we even wrote off the ice-cream parties that they've had in the past as they were incentives for good behavior and/or performance on academic items.

 

Save your vet reciepts for Medical.
Afterall he's a member of the family.

Any money you send to any government agency (local,state,federal) is a tax.

The DMV tags on your truck for example.

 

I know of one I am working on right now for my father. Its not a small loophole, actually up to $100,000. If you own a small buiness you can write off 50%-100% of a vehicle used for the business use, the vehicle can be upto $100,000. I dont know all the terms, but the ones I know are: has to be used for at least 50% business use(%buiness use equals % written off), GVWR has to be 6000 lbs plus. Van, pickup, SUV, doesnt matter. LIke I said I dont know all the terms of the section, but if someone has a small business and needs a new vehicle. Heres you a free or close to it one. Its Section 179 of the 2003 Tax Act.

 

Taking Federal Income Tax right now and will take Advanced Federal Income Tax next semester. Hopefully next year I can offer some advise.

At this point, we are covering just the taxes, not any real loopholes right now. Simple stuff like:

Bob ownes a quaified annuity that cost $78,000. The annuity is to pay bob $650 per month for life after he reaches age 65. Bob turn's 65 on Sept. 28, 2003 and receives his first payment on Nov. 1, 2003. Assume bob dies in a truck accident shortly after he recieves his Nov.1, 2027 check. How does the executor of bobs estate account for the annuity on his 2027 return?





Did know about being able to depreciat up to $100,000 in new vehicles as long as you make a profit. And of course, max our your ROTH IRA like mad cakes!

 

Don't include your kids as dependents if their names are Spot and Fluffy. The IRS won't believe you.

 

You can write off job hunting expenses (resume, cable modem, internet access, etc), magazines, publications, and memberships related to your profession, anything you buy for work that is not reimbursed, If you work two jobs then travel expenses from one job to the other, school books, cash donations, charity (clothes, appliances donations), interest from a boat (It is considered a second home if it has a head and a galley).

How's that?

 

my friends mom buys a clunker vehicle for a couple hundred bucks & gives it to charity every year... the vehicles appraise for more than she bought them for, so it looks like she donated more.






might work out very well for you if you have a friend that is a used car wholesaler..

 

In the event that you were to get audited, how could one protect theirself and proove that you were searching jobs.

For example, I've been looking around at the market frequently of late. I haven't, however, applied for any positions and such thus, I have no proof that I've even surfed those sites.

I'd love to claim the cost of my ISP for a few months if that would work...

RP

 

Pre-tax 401k and an IRA account.

You get a tax break plus your saving up for the future, all at the expensive of little money each paycheck.

 

theshyguy
You are right on the vehicle deduction. my company has 6 vehicles and our accountant says that if we lease, which we do, we can write off 100%of the payment. it has been going on for years and is totaly legit.
I also know how to get a power rear sliding window for free but thats for another days topic

 

They can't prove it otherwise...

Sign up with Monster and some other online job sites...there's your proof. As long as you keep your membership active, it will carry over.

 

Doesn't a limit exist on how much you can deduct for and from AGI?

 

Yes. You have to stop when you get to zero.

 

BASTID! I've got the mind to call your insurance company right now! lol!

RP

 

Don't know if this works for US citizens but I don't stay in one country long enough to pay any taxes anywhere.
I have a UK passport and am allowed to spend 90 days home every year while still being able to declare myself as a non resident.
I have not paid any tax since 97.