Deduct the interest on your second home

Deduct the loan interest on your RV, camper, or even your boat.

 You are allowed to deduct mortgage interest on your primary residence and one other residence.

 

The definition of what constitutes a residence is very broad and includes RV's, campers, and boats as long as they have cooking, toilet, and sleeping facilities.

This is a second home deduction.

If you want the best in tax advice please see my blog at

LarryLaveTaxman@blogspot.com or email me

LarryLaveTaxman@gmail.com

Plan your divorce to save Taxes

Timing your divorce can save you taxes.

 

I know this sounds cold, but not every divorce is embittered. Some people actually do it serially to get tax benefits.

 

The formula is the exact opposite of when you get married. If both spouses earn about the same amount of money, getting a divorce before the year ends will save taxes by eliminating the marriage penalty. If one spouse earns a lot more than the other, waiting until January will save taxes by taking advantage of the marriage bonus for one last year.

 

There are many other planning opportunities with a divorce.

If you want the best in tax advice please see my blog at

LarryLaveTaxman@blogspot.com or email me

LarryLaveTaxman@gmail.com

Take your medical expense with your emplloyer

Medical expenses can rarely be taken on Schedule A due to the 7.5% of AGI limitation, but through your company's cafeteria plan, you can fully deduct your medical expenses from your W-2 wages.

 

 The only catch is that if your unreimbursed medical expenses for the year are less than what you set aside from your wages, the difference is forfeited.

 

 The definition of what constitutes qualified medical expenses is very broad so make sure to visit your dentist, optometrist, acupuncturist, chiropractor, etc. in December if you haven't used up all of your current year medical expense contributions.
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If you want the best in tax advice please see my blog at

LarryLaveTaxman@blogspot.com or email me

LarryLaveTaxman@gmail.com

Get the best Benefits your company has to offer

Take advantage of your company's cafeteria plan and other tax-free benefits.

 

 For example, your company's dependent care program is a great deal if you are in the 27% tax bracket or higher. The dependent care credit only gives you a tax credit of 20% of your child-care expenses, but through your company's cafeteria plan you will be getting a tax benefit equal to the tax bracket you are in. So if you are in the 30% tax bracket, you will be getting a tax benefit of 30% as well as a reduction of your state income tax.

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If you want the best in tax advice please see my blog at

LarryLaveTaxman@blogspot.com or email me

LarryLaveTaxman@gmail.com

Arrange your affairs to pay less TAX

 Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one's taxes.

 

Judge Learned Hand quoted in

Gregory v. Helvering, 69 F.2d 809, 810 (2d Cir. 1934)

If you want to be Charitable, give money to a Charity, but as the Judge Hand says, keep your taxes down.

 

Use the Moolastreet tips to save yourself bucks.

 

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If you want the best in tax advice please see my blog at

LarryLaveTaxman.blogspot.com or email me

LarryLaveTaxman@gmail.com

Fwd: Make sure your govenment reported papers are reported correctly on your tax returns

 

Make sure that your tax return numbers match the 1099s you receive from your broker, employer, or investment company.

 

 EXAMPLE: Your 1099 from your broker shows $55,342 in gross proceeds from stock sales. If the only stock you sold during the year was through your broker, the gross proceeds shown on Schedule D of your tax return should be $55,342.

 

If your numbers don't match, you can bet on an aduit

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If you want the best in tax advice please see my blog at

LarryLaveTaxman.blogspot.com or email me

LarryLaveTaxman@gmail.com

Re send of Work for Capital Gains instead of ordinary income

Invest in growth stocks and growth mutual funds.

 

By putting your money into growth funds, you will achieve capital gains rather than ordinary income.

 

The fewer times you sell and reinvest, the more money you can keep invested in the market instead of having to use part of your gains to pay taxes.

 

 Also, long-term capital gains are taxed at favorable rates, while dividends, interest, and short-term capital gains are taxed at your highest rate.

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If you want the best in tax advice please see my blog at

LarryLaveTaxman.blogspot.com or email me

LarryLaveTaxman@gmail.com