Easy Ways to Lower Your Taxes

Your Companion in Winning the War on Taxes

1. Tax Basics Everyone Can Understand

• A. What Can Tax Planning Do for You?
• B. Income Tax 101: How the System Works
• C. How Low Can You Go? Stopped by the AMT Stealth Tax
• D. Most States Have Income Taxes, Too
• E. When to Start Tax Planning

2. The Best Tax Is No Tax: Income That’s Tax Free

• A. Timing Your Home Sale for Maximum Tax-Free Income
• B. The Minor Advantage: Tax-Free Income for Children
• C. Tax-Free Home Rental Income
• D. Bonds, Roths, and Other Tax-Free Investment Income
• E. Saving for College, Tax Free
• F. Health Savings Accounts: The Triple Tax Break
• G. Employee Fringe Benefits: Don’t Miss These Tax Savings
• H. Social Security Benefits: Tax Free Until They’re Not
• I. Live and Work Abroad and Avoid U.S. Taxes
• J. Bonus Round: Other Types of Tax-Free Income

3. Dollar-for-Dollar Refunds: Tax Credits

• A. Hybrid Cars: New Wheels and a Tax Break, Too
• B. Solar Power—Let the Sun Burn Up Your Tax Bill
• C. Tax Joy From Your Bundles of Joy
• D. Get Educated and Get a Tax Break
• E. Is Saving for Retirement a Challenge? Here’s a Boost
• F. Own a Business? Tax Breaks for Good Corporate Citizens
• G. Expats’ Delight: Credit for Income Taxes Paid Elsewhere
• H. Bought Your First Home? A Tax Credit That’s Really a Loan
• I. Take Credit for Rehabilitating an Old or Historic Building
• J. Benefit From Investing in Low-Income Housing

4. Delaying the Pain: Deferring Income and the Tax It Brings

• A. Everybody’s Deferral Tool: Retirement Accounts
• B. No Profits, No Tax: Holding on to Your Investments
• C. Happy New Year: Deferring Business Income to Next Year
• D. Can You Wait for That Bonus? Deferring Employee Compensation
• E. No Need to Ask: Automatic Interest Deferral on U.S. Savings Bonds
• F. Annuities: Sometimes Worth the Trouble
• G. Swapping Real Estate: Deferring Taxes on Investment or Rental Property
• H. Spreading Out Profits (and Taxes) With Installment Sales

5. Count Every Penny: Reducing Taxable Income With Deductions

• A. Something for Everyone: Types of Tax Deductions
• B. What’s in It for You: The Dollar Value of a Deduction
• C. Going the Easy Route: The Standard Deduction
• D. Going for Every Dollar: Choosing to Itemize
• E. Adjust Your Income With Above-the-Line Deductions
• F. Own a Business? Deduct Your Expenses
• G. Plan Ahead to Maximize Tax Savings From Deductions

6. Join the Low-Rate Club: Reduce Taxes Through Investing

• A. Keeping Your Capital Gains Tax Low
• B. Keeping the Tax on Your Dividends Low
• C. Minimizing the Taxes on Your Mutual Fund Earnings
• D. Different Rules When You Sell Business Property

7. All in the Family: Shifting Income Within Your Household

• A. All Aboveboard: How Income Shifting Works
• B. Thanks, Mom: Giving Your Kids Income-Producing Property
• C. The Kiddie Tax—The IRS Puts the Brakes on Income Shifting
• D. Giving Assets to Children Not Subject to the Kiddie Tax
• E. Minor Detail? You Can’t Take Your Gifts Back
• F. How to Give Away Plenty Without Gift Tax Concerns
• G. Give Junior a Job and Shift Your Tax Burden

8. Making the Most of Your Filing Status and Tax Exemptions

• A. Choosing the Classification for You
• B. Taking All the Tax Exemptions You Deserve

9. Help Beyond This Book

• A. Information From the IRS
• B. Other Online Tax Resources
• C. Tax Publications
• D. Consulting a Tax Professional

Index