Acclaro Blog

Archive for the ‘Tax Planning’ Category

2012 Contributions & Deductions Guide

Wednesday, February 6th, 2013

2012 IRA Contribution Limits Guide
Equity Trust’s Guide to 2012 IRA Contribution Limits

Got Tax Deductions?

Wednesday, March 14th, 2012

Here are some real life attempts at tax deductions that we do not recommend:

Not Internet – Interbird?
Two business partners in Arizona did not trust modern technology for communicating with each other. The two thought it made sense to communicate using carrier pigeons. So they attempted to write off the pigeons, as well as their care, food and housing as a business expense.

Flatter is Better?
Writing off breast enlargements has actually been approved as a business expense for exotic dancers. But one public personality added a new twist: she wanted to write off her tummy tuck as well. She argued that both larger breasts and a smaller stomach would translate into bigger tips on the job.

Fake Eyelashes?
Speaking of exotic dancers, they need to maintain their looks in order to rake in tips — and that means shelling out some serious cash for costumes and cosmetics. For years, one dancer in New York has been able to deduct the money she spends on looking good, including outfits, photos and makeup — even false eyelashes, tanning, teeth whitening and skin and hair care. The amounts vary from year to year, but typically it all adds up to a few thousand dollars.

One job hunter tried to write off his dental implants as a job-hunting expense, arguing that he had a better chance of getting a job with a full set of pearly whites.

No matter how much you love your pet, be it a dog, cat, fish or pig, you can’t count them as a dependent on your tax forms and you can’t deduct their expenses. One individual wanted to write off the cost of the pig’s food and medical costs, which added up to more than $7,000. The tax preparer explained that it says in the tax code that it must be a person. The individual was disappointed and argued that he didn’t know what he was talking about.

Maximize Your Deductions

Tuesday, February 21st, 2012

Did you know that US taxpayers itemize more than $1 trillion worth of deductions? $1,000,000,000,000, a number most of us have a hard time comprehending.  And those who don’t itemize claim about $700 billion using standard deductions.  Those of you who don’t itemize may very well be missing the opportunity for a larger refund.

Also, Child Care Credit: If you run your child care expenses through your employers flexible spending plan you are limited to $5,000. per year.  If you have expenses over $5,000. you can claim a credit of up to $1,000. more.

It’s very easy to miss one of the many opportunities to reduce your tax burden. A number of years ago, the head of the IRS at the time told Kiplinger’s Personal Finance magazine that he figured millions of taxpayers overpaid their taxes every year. So, we thought you might like to review the following article: