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The Most Costly Income Tax Mistake Anyone Can Make

by Matthew Person on August 25, 2011

The Gettysburg address is 269 words. The Declaration of Independence is 1,337 words. The Holy Bible is 773,000 words. However, the tax code has grown from 11,400 words in 1913, to over 7 million words today. – Author Unknown

 Ã‚ Ãƒâ€š Ãƒâ€š Ãƒâ€š  Today Person Huff CPA group will let you in on the biggest mistake we see taxpayers make, failing to do tax planning. Despite our best efforts to reach out to taxpayers, there are always cases where April 15th rolls around and someone gets a tax bill that causes feelings of nausea. You probably already guessed that this feeling of illness is due to a much larger than they would have liked amount due with the filing of their form 1040. What you may not know is that a little planning can go a long way in keeping your taxes low. 

 Ã‚ Ãƒâ€š  When dealing with a 7 million word(and growing) rule book like the federal tax code it is more important than ever to make an effort to utilize the rules that can help you. There many exceptions and exclusions to the general rules but you have to know about them. Small business owners, real estate investors, taxpayers with dependent children, and contributors to charity or just some of the groups with provisions in the tax code that save serious money. Some of the potential strategies for these taxpayers include things like: 

  • Accelerated write offs when purchasing equipment
  • Accelerated write offs for leasehold improvements and other high value real estate improvements
  • Reduced tax rate on gains when selling rental real estate
  • Favorable write offs when donating property to charity
  • Lower overall tax rates when income producing property is owned by dependent children
  • Credits for child care expense
  • And much more

 Ã‚ Ãƒâ€š Ãƒâ€š Ãƒâ€š  You can learn more about planning for yourself by talking to a team member at Person Huff CPA Group. One of the services you should utilize is our Tax Coach program. Tax Coach is a detailed tax projection and tax plan using information gathered from a questionnaire that is specifically designed to determine which of the 7 million words in the tax code save money. Once we identify what to do, we go a step further and help you implement strategies. After all, knowing what to do, but not how to do it, is just as bad as not doing anything.

 Ã‚ Ãƒâ€š Ãƒâ€š Ãƒâ€š  Click on the sample below of a hypothetical client who has owns real estate investments. Click Here To See A Sample The report starts with a thorough over view of tax rules that affect him before analyzing specific details and offering a tax saving action plan. Contact us today for your own Tax Coach plan for in depth guidance.  All Tax Coach plans come with a 100% money back guarantee. If we do not save you money, you don’t pay a penny.  

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