| |||||||
|
 |
Format Information
DescriptionThe complete guide to lowering your taxes, one step at a time!
Many personal finance books are full of hype, promising a radical reduction in taxes (or no taxes at all). Unfortunately, they often tout obscure tax strategies that apply to only a handful of people-- or doubtful schemes that could bring on the IRS. Lower Taxes in 7 Easy Steps is a different kind of book, providing insights and tactics that can reduce your tax bill. Clearly and concisely, it explains the seven most valuable rules of tax planning: Each rule is fleshed out with plenty of ideas, strategies and real-life examples. In the end, you'll save time and money with confidence. Take advantage of retirement plans, home mortgages, student loans, charitable contributions, medical expenses, dependents, even businesses that never get started-- and more! If you like this title, you might also like…
ExcerptsChapter 1 - Introduction...
We've all heard that death and taxes are inevitable. Well, death may be inevitable, but taxes are not. With some planning, you can minimize the taxes you pay each year. However, many people don't do even the most basic planning to save on taxes and they end up paying more to the irs than they need to. You don't want to be one of these people. this book shows you -- in seven easy steps -- ways you can reduce your taxable income and the amount of taxes you will owe each year.
The tax planning strategies discussed in this book are the tried-and-true techniques for reducing taxes that every taxpayer should be familiar with. There's nothing in here about offshore bank accounts or convoluted tax shelters. We cover the basics -- strategies that are not difficult to understand or put to use, and are most likely to save you -- the average taxpayer -- money. You may even find it fun to learn, particularly when you see how much you can save with a little knowledge and planning. Is Tax Planning for You? Tax planning means figuring out ways to minimize the taxes you have to pay each year. Tax planning is perfectly legal and makes sense for anyone who pays taxes. It's not tax evasion which is cheating on your taxes -- for example, not reporting all your income to the IRS. Tax evasion is illegal and, if you're caught, you'll have to pay the IRS all the taxes you owe, plus interest and penalties. in some cases, you could even go to jail. Look at what happened to the winner of the first Survivor television series, Richard Hatch. He was sentenced to 51 months in jail for tax evasion after he failed to report his $1 million winnings to the IRS. You might think tax planning is just for rich people who use high-priced tax and accounting professionals to help them. This isn't true. People with modest incomes can benefit from tax planning too, and often can do it themselves. There are many ways to lower your taxes that are simple to understand and implement yourself -- for example, opening an IRA or hiring your children to work in your business. Others are more complex and may require the help of a tax professional, such as tax-free exchanges of business property. The important thing is to have an understanding of your options. A surprisingly large number of taxpayers fail to take even the most basic steps to reduce their income taxes, even though it would save them hundreds or thousands of dollars each year. You owe it to yourself to learn the basics. Then you can rest assured that you are not one of the many people paying too much money to the IRS. A Quick Look at the Seven Steps Here's a quick look at seven steps you can take to reduce your taxable income and the taxes you will owe. Each step is covered in one of the chapters that follows. The steps that are likely to save you the most taxes are listed first, but you don't need to implement them in any particular order. You probably won't be able to use all seven tax-saving strategies each year -- for example, you may not qualify for tax-free income or have anyone to shift income to. And which steps you can use may change year to year. That's fine. Just keep in mind that the more of these tax-saving tips you put into practice each year, the less taxes you'll owe. Synopsishe complete guide to lowering your taxes, one step at a time!
Table of Contents1. Winning the War on Taxes
Is Tax Planning for You? A Quick Look at the Seven Steps Income Tax 101: How the System Works Icons Used in This Book 2. The Best Tax Is No Tax: Income That's Tax Free Selling Your Home With No Income Tax The Minor Advantage: Tax-Free Income for Children Renting Your Home at No Tax Cost Bonds and Other Tax-Free Investment Income Health Savings Accounts: The Triple Tax Break Employee Fringe Benefits: Don't Miss These Tax Savings Social Security Benefits: Tax Free Until They're Not Live and Work Abroad and Avoid U.S. Taxes Don't Overlook These Other Types of Tax-Free Income 3. The Dollar-for-Dollar Advantages: Tax Credits Hybrid Cars: New Wheels and a Tax Break, Too Pain-Free Reduction of Energy and Your Tax Bills Tax Benefits From Your Bundles of Joy Get Educated and Get a Tax Break Save for Your Retirement -- Another Tax Benefit Tax Breaks for Good Corporate Citizens The Expatriate Advantage: Credit for Income Taxes Paid Elsewhere Credit to Rehabilitate an Old or Historic Building Benefit From Investing in Low-Income Housing 4. Delaying the Pain: Deferring Income and the Tax It Brings Everybody's Deferral Tool: Retirement Accounts Hold on to Your Investments Happy New Year: Deferring Business Income to Next Year Deferring Employee Compensation: Benefits Served With a Little Risk No Need to Ask: Automatic Interest Deferral on U.S. Savings Bonds Annuities: Complicated, But Sometimes Worth the Trouble Swapping Real Estate: Deferring Taxes on Investment or Rental Property Spreading Out the Profit (and Taxes) With Installment Sales 5. Count Every Penny: Reducing Taxable Income With Deductions What Are Tax Deductions? Deductions Sound Great, But What Are They Really Worth? The Standard Deductions: Definitely the Easiest Route and Sometimes the Best One Don't Miss Out on Itemized Deductions Adjustments to Income: Like a Deductions, But With a Different Name Do You Have a Business? Don't Forget to Deduct Your Expenses Make the Most of Your Deductions: Plan Ahead for the Greatest Tax Savings 6. Join the Low-Tax Rate Club: Reduce Your Tax Rate Through Investing Capital Gains -- The Best Rate in Town Dividends: Timing Is Everything When It Comes to Low Rates Tricky Tax Consequences of Buying Mutual Funds Business Property Sales: A Mixed Bag Taxwise What You Can Control: Tips on Lowering Your Tax Rate 7. All in the Family: Shifting Income in Your Household to Lower the Tax Burden The Family That Pays Taxes Together Stays Together: How Income Shifting Works Thanks Mom: Giving Your Children Income-Producing Property Give Junior a Job: Employing Your Children to Shift Your Tax Burden Who Said Never Hire Your Relatives? 8. Cover the Basics: Making the Most of Your Filing Status and Tax Exemptions Choosing the Classification for You Taking All the Tax Exemptions You Deserve 9. Help Beyond This Book Information From the IRS Other Online Tax Resources Tax Publications Consulting a Tax Professional Index ReviewsAttorney Fred Daily,author of Tax Savvy for Small Business ...
"I can't think of any taxpayer who wouldn't benefit by reading this book."
About the Author
Stephen Fishman is the author of many Nolo books, most recently Tax Deductions for Professionals. Other titles include Deduct It! Lower Your Small Business Taxes, Every Landlord's Tax Deduction Guide and Home Business Tax Deductions: Keep What You Earn—plus many other legal and business books. He received his law degree from the University of Southern California in 1979. After time in government and private practice, he became a full-time legal writer in 1983.
Digital Rights Information
| |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
