May 8th, 2012 Amanda Han CPA (Taxloopholes.com Tax Strategist)
Our email last week seemed to have struck a chord with a lot of you because we have received tons of emails and phone calls. A lot of you felt that you paid more in taxes this year than you were expecting to and also felt that you may have made some of the common tax mistakes we wrote about.
One of the biggest obstacles that prevent people from accumulating wealth and generating cash flow is the major burden from taxes. Every year, people gather up their tax documents to give to their tax preparer and then just sit back and wait as the tax preparer puts in the numbers only to later tell them the bad news of how much is owed for that year.
America’s tax law is so complex that most people just do not know what can and should be done in order to minimize their taxes. To be honest, most tax preparers do not know what can be done to minimize their tax savings either which is the unfortunate part. We can’t tell you the number of times we have reviewed a tax return and found lost opportunities from missed deductions to just plain dumb mistakes.
The good news is you are not alone and we can help! It is your money so let us help you get it back!
Out of haste to meet the tax deadline, a common mistake we have seen taxpayers make is not correctly taking their tax deductions where they should be taken or completely missing them all together. Here are 5 more common tax mistakes that we saw this year:
1. Not deducting business expenses that were paid with personal funds. Business expenses are deductible regardless of what money you paid with so make sure to deduct these items on your tax return.
2. Not maximizing the car and travel deductions for business activities. There is a long list of deductible items that relate to your car and travel expenses which can save you some big bucks.
3. Not taking deductions in the right place. Not all deductions are created equal, so if you have a job, a business, or investment properties, make sure you are deducting your expenses in the places where it gives you the most tax savings.
4. Not looking at the Big Picture. There are different ways to file and report your taxes. Married filing joint vs. separate? Claiming your dependents or letting them file on their own? Your tax situation is unique to you and things are different from year-to-year so do not assume that your filing status should always remain the same!
5. Not filing your business and investment activities in the correct legal entities. Believe it or not, it is not too late to go back and change your legal entity for 2011. We just helped a client to save over $12k in taxes just by changing her to the correct legal entity for 2011 on her tax return!
If you feel you have overpaid on your taxes, then what you do today can end up costing you more money year after year or saving you more money year after year.
This year we are committed to helping taxpayers, just like you, to capitalize on any deductions from the 2011 tax year. If we did not prepare your tax returns, we strongly encourage you to take advantage of our:
360 Degree Tax Review & Analysis
Our second look process will allow you to see what tax-saving opportunities are available to you NOW
45 Minute One-on-One Consultation with one of our Tax Loopholes CPA and Tax Strategists ($99 value)
Tax Return Review & Analysis (personal & up to one entity free) ($399 value)
Observations Letter based on our Findings ($199 value)
A copy of our proprietary Checklist: 360 Degree Tax Savings Roadmap ($149 value)
Exclusively for our Tax Loopholes community, you can get all of the above for just $399 before May 15, 2012.
If you have filed a tax extension or have already filed your tax returns for 2011 and are unsure if they were prepared correctly or just want a second opinion in general then give our office a call today.
Bottom Line- this is the perfect time to have your tax return reviewed in depth by a Tax Strategist to look for any additional tax savings and/or refunds. It’s your money so let us help you get it back!