Reduce Your Taxes

Even though April 15th has come and gone this year.  There's always going to be a next year.  I found these tips in a book titled, The Great American Bathroom Book I, page 98.  Because this book is a compilation of other books, these tips were cited as coming from Wealth Without Risk by Charles J. Givens.

Now that all that is out of the way, I'd like to say that the first mentioned book above is packed full of useful and helpful information, not to mention very entertaining.  I found my copy in a goodwill thrift store.  I think I paid something like seventy cents for it.  Well worth it!

Tax Tips are what I am labeling them, but they are called "Strategies" in the books referenced above.

• File your return later, not earlier.  When the chosen number of audits are picked, the computer will stop picking them out.  So, the later you file, the less chance there is of being audited. 
• Borrow money for your IRA - even if you have it and don't need to borrow.  The IRS has now ruled that the interest you pay on money borrowed for an IRA is tax deductible.
• Don't wait to contribute to your retirement plan , do it NOW.  For example, If you invest $2000 in a tax-deferred retirement account each year between the ages of 20 and 26.  If you never invest another cent, you will have more money when you reach age 65 than if you wait until you are 26 and invest $2000 every year for the next 40 years without retirement account tax protection.
• Use job interviews to make vacations deductible.  Keep copies of job applications for your tax files along with airline, hotel, food, and rental car receipts.
• Use employee deductions to turn your job into a tax shelter.
• Get next year's tax refund this year.   Adding allowances to your W-4 form, you can get next year's refund in this year's paycheck.  Then go ahead and invest the money to work for you, rather than for the government.
• Turn home improvements into tax deductions.  Know the difference between home repairs which are non-deductible upon resale of your home;.and home improvements, which are deductible when you sell.
• Use your boat, plane or motor home in your small business to create tax deductions.  You might use a motor home as an office to display products or services or as a traveling billboard.