Finance Tax Time

There is a major difference between a tax preparer and a tax advisor. Tax preparers, although many may advertise that they can save you money with your taxes or get you a better return, their actual job is really focused on the actual paperwork of filing out your taxes. A tax advisor is actually what you should look for if you are hoping to save money on your income tax.

Here are some tips you can use to choose a good Tax Advisor:

Tags: tax advisor, tax attorney, tax help, tax preparation, tax resolution, tax return, tax softwaretax advisor, tax attorney, tax help, tax preparation, tax resolution, tax return, tax software

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Recently, I stumbled across a concept that could change your financial life. You can call it a paradigm shift or a new perspective or just a different way to look at things.

This single concept can save you tens of thousands of dollars each year. Its soooo powerful and yet its completely underutilized. Learning this simple technique can dramatically impact your financial picture.

Tax Deductions the rich use to stay ahead

I was speaking about tax savings at a seminar and there was a spontaneous outburst of questions.

Can I deduct my health insurance? How about my new truck? I’m taking horseback riding lessons. Are they deductible? What about my vacation?

As we worked through people’s list of concerns, it dawned on me. You’ve been trained to ask the wrong question.
Let’s suppose you call up your C.P.A. and ask, “Hey Lenny, Can I deduct a Pizza? What do you suppose Lenny’s response would be?

He’d probably think you had gone mad - “Are you crazy, he’d say. You can’t deduct a Pizza!”.

Tax Strategies

But if you called me and asked the same question, you’d get a different response altogether. I’d probably pause for a moment and respond “Well, that depends.” You see, if you and I went to an Italian restaurant and ordered Pizza and a couple of beers, the meal would be deductible (at the rate of 50%) so long as we discussed business.

Same thing with your vacation if you conducted your annual meeting while you traveled. The equestrian lessons are deductible as education and the new truck is deductible to the degree that you use it for business.
Which brings up a key point: It’s not the item, it’s the circumstances.

Tax Deduction Secrets

Most business people and their advisors wrongly focus on the item (the truck, the lessons, and the trip). The trick is to make your circumstances open the door to the tax deductions.

So, instead of asking “Is this deductible” - you should start asking HOW is this deductible? Then, all you have to do is create the circumstances that allow for the deduction!

All the Best,
Drew Miles, The Tax Saving Attorney

Drew has combined what he learned during formal education, informal education and twenty five years of business experience in the development of programs designed to teach people how to build and preserve lasting wealth. He is an author, teacher and international speaker in the areas of asset protection, and tax saving and wealth building strategies.

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Every year in April, American citizens are faced with an imposing deadline - tax day. Throughout the year, income is earned and then taxed. Depending on the way in which dependants are claimed and deductibles used, a person would then be entitled to money back come income tax time or they would have to pay taxes. In either case, dealing with income tax forms and laws can be a disturbing prospect.

Keep in mind that the United States lives on a budget just as regular families do. Their money is what pays for highways, national parks, the military, schools, and other important things associated with this country. However, for the government to have a budget in the first place, they have to collect money from individuals and companies in the form of taxes. For this reason, a certain percentage is deducted from your paycheck, which goes to various entities of the government for their needs.

Understanding the tax laws associated with income tax can be confusing but overall, you could break them down into five groups. First, remember that every person is responsible for paying income tax. The amount paid depends again on a number of factors, as well as income earned. The more salary earned the more taxes are paid by you, because you are placed in a higher-income bracket. The good news is that by using a number of tax benefits, you can pay less.

Income tax laws require that you pay money out throughout the year, which is known as a “pay as you go” rule. Typically, income taxes would be taken out of your paycheck and then sent on to the government. Then, at income tax time, the amount paid versus what was owed is balanced, which is when you pay to or receive money from the government. In other words, if more taxes were taken out of your paycheck than what you owed, you would receive a refund at tax time whereas if you did not pay enough, you would owe the government money.

You also need to remember that the tax system and tax laws are considered progressive, which means the more you make the more you pay while the less you earn the less you pay. Therefore, your income tax is going to fluctuate any time your income changes. Interesting, many people on Capital Hill argue about this progressive system, feeling that it is unfair. However, for the time being, the tax laws stand although we can be sure there will be changes in the future.

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