Finding Tax Loopholes, the Blog

Starting out with your investing

Starting out with your investing
Getting started with your investing, your main focus at this point in your planning should be making sure you’re stashing enough money into your 401(k) and other retirement accounts, not following the ups and downs of the economy and the markets. CNNMONEY.COM has a calculator where you can quickly tell whether you’re stashing away enough. What you need to save. Just plug in your age, annual salary and the amount you already have saved, and you’ll have it! You’ll get an...
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Our era of growing economic uncertainty-Prologue

Our era of growing economic uncertainty-Prologue
As we enter an era of growing economic uncertainty, we could learn a lot from the last American generation to truly experience a financial hardship. When people my age – I’m 51 this year – or younger casually discuss their worries of a coming recession or even a depression, I think they’re playing parlor games. We have never lived through The Great Depression. Most of us have never even had an emotionally honest conversation with someone who did. I don’t think...
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Are You Eligible to File Form 1040A?

Are You Eligible to File Form 1040A?
Why would you want to? Form 1040A is shorter and easier to fill out than the longer and more complex Form 1040. Form 1040A also covers more deductions and tax credits compared to the 1040EZ. For example, you can deduct IRA contributions and student loan interest on the 1040A short form, but cannot take the same deductions on the 1040EZ form. The benefits of using Form 1040A are that the form is faster to prepare than the longer 1040, and faster also for the IRS to process. That means less tax...
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“Eckhardt, you oughta think about the future.”

“Eckhardt, you oughta think about the future.”
. . . Eckhardt merely scoffs at the statement, “You’re an A-1 nut-boy, and Grissom knows it.” Later as things had changed, he is told again, “Eckhardt! Think about the future.” Of course then Eckhardt is killed. – me being me, did Eckardt have an estate plan?             Avoid the ‘Death Tax’.             As a fan of the Batman movies, I am interested in its characters and those who play them. However, this post isn’t about Batman.             Recently, a big Estate I...
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Are You Having Enough Taken out for Withholding?

Are You Having Enough Taken out for Withholding?
Well how are you supposed to know? A few easy steps and some light planning can help you figure this out. What you need to know: If you fail to estimate your federal income tax withholding properly, it may cost you in a variety of ways. If you receive an income tax refund, it essentially means that you provided the IRS with an interest-free loan during the year. By comparison, if you owe taxes when you file your return, you may have to scramble for cash at tax time–and possibly owe...
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Avoid the “Death Tax”

Avoid the “Death Tax”
“Why, Eckhardt, you oughta think about the future.” . . . Eckhardt merely scoffs at the statement, “You’re an A-1 nut-boy, and Grissom knows it.” Later as things had changed, he is told again, “Eckhardt! Think about the future.” Of course then Eckhardt is killed. Avoid the ‘Death Tax’. The above is taken from Batman, I am interested in all its characters and those who play them. However, this post isn’t about Batman. Recently, a big Estate I have been working on for well over...
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Your Home-Office Deduction/s

          More than one million new businesses are started each year. There are more than 27.2 million small, non-farm businesses in America. Of that Include 52 percent home-based businesses and two percent franchises. Of that, 52 percent are home-based businesses. 44 percent survive at least four years, and 31 percent survive at least seven years. Twenty-four percent of all new businesses begin with no outside financing.           What this is all pointing to (in my opinion) is there are a...
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Are You Having Enough Withheld?

If you fail to estimate your federal income tax withholding properly, it may cost you in a variety of ways. If you receive an income tax refund, it essentially means that you provided the IRS with an interest-free loan during the year. By comparison, if you owe taxes when you file your return, you may have to scramble for cash at tax time–and possibly owe interest and penalties to the IRS as well. When determining the correct withholding amount for your salary or wages, your objective...
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Release of Claim to Exemption. . .

            I have a lot clients who are divorced and they share (every other tax year) exemption of their child/ren. This is done by way of Form 8332 Release of Claim to Exemption for Child of Divorced or Separated Parents.             This is a pretty basic information form, but one that gets both abused and ignored. A lot of divorced parents aren’t even aware that it exist. Usually because they never really explain their situation fully to their preparer or they are still doing their own...
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What is the difference between us all…

What is the difference between us all…
As a professional tax preparer, I am often asked what is the difference between us.  Enrolled Agent, tax attorney, an accountant/CPA, a bookkeeper, and a tax preparer. So here you go… For a beginning, a professional Tax Preparer is an individual who prepares tax returns. A professional tax preparer can be an Enrolled Agent, a Tax Attorney, an Accountant/CPA, a Bookkeeper, or anyone really who professionally prepares tax returns for clients. Most return preparers are professional, honest...
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