How Do You Know What You Can Deduct?

Entrepreneurship / Making Money, Miscellaneous, Money in Your 20s/30s/40s/50s/Retirement
It’s tax time and that can be stressful. It can also be a time where people feel hopeful about receiving a large refund for taxes overpaid during the year. In order to fully understand this process, it is important to recognize that your refund is for taxes that you paid during the year that are more than your tax burden should be based on your income and expenses. This seems simple enough, but many people feel sheepish about taking the full benefit of their write-offs. This is silly however, because a write-off represents your expense while contributing to the the economic value of our economy. Sometimes it’s hard to know what is acceptable to deduct and what isn’t. Because most people would rather have a root canal without anesthesia than…
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Don’t Drive into Debt

Don’t Drive into Debt

Budgeting, Debt, Goals / Taking Action, Miscellaneous, Money in Your 20s/30s/40s/50s/Retirement, Take Action
Now that tax, and tax return, season is upon us, maybe you’re thinking about purchasing a car. A tax return can make a solid down payment. Because cars are a depreciating investment, it is important to find a reliable car that fits your budget and won’t break down, causing extra bills and stress1. What do you need from a vehicle? Before you even start looking, you need to know what you’re looking for. It's easy to buy a vehicle for emotional reasons, but because it's a large expense, buying a practical car is a huge benefit to your financial well being. Do you haul trailers or equipment frequently? Are you a commuter? Do you have a family or have hopes to start one in the future? All of these questions will…
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Is the Mortgage Tax Deduction in Your Best Interest?

Is the Mortgage Tax Deduction in Your Best Interest?

Debt, Miscellaneous, Money in Your 20s/30s/40s/50s/Retirement, Saving & Investing, Take Action
So tax season is upon us, and if you’re paying on a mortgage, you probably feel pretty excited about the home mortgage tax deduction that comes with it. After all, everyone says that you should hold off on fully repaying your mortgage because the tax deduction saves you money. Unfortunately, that common sense advice isn’t really sensible at all, and may actually be costing you money. The home mortgage tax deduction is a type of itemized tax deduction that allows you to reduce your taxable income by the amount you paid in interest. This deduction combines with all other itemized tax deductions and if that total exceeds the standard deduction it will take its place. Now, you can claim up to two homes for this deduction, and the definition of…
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​A Tax Penny Saved Is A Tax Penny Earned #WMWeek17

​A Tax Penny Saved Is A Tax Penny Earned #WMWeek17

Uncategorized
When we talk about money and investing the focus is often on how to make more, but as Ben Franklin famously stated, a penny saved is a penny earned. Because of this, an important component to smart money management is reducing its outflow. Over the course of our lives our largest expense is not our house or the sum total of our cars and their expenses. The largest expense for most Americans comes in the form of taxes. When we understand this and also understand that there are opportunities to make more money while reducing our marginal tax burdens, seizing these opportunities becomes obvious.Taxes are very complicated and there are numerous taxes that involve almost every type of transaction.But you don’t need to be a tax lawyer or CPA to…
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