75 Possible Tax Deductions
There are now seven different ordinary income tax brackets- 10%, 12%, 22%, 24%, 32%, 35%, and 37%, and three different capital gains tax brackets- $0%, 15%, and 20%. Furthermore, 3.8% NIIT Net Investment Income Tax bracket, further complicates the situation. For example, high income taxpayers will be subject to a 40.8% tax rate on ordinary investment income and a 23.8% tax rate on long-term capital gains.
The increased value created in an investment portfolio by using tax saving strategies described below is referred to as “TaxAlpha.” Put another way, it is your after-tax excess return (after-Tax Alpha) minus your pre-tax excess return (pre-Tax Alpha) based on the appropriate benchmarks. Research indicates that many portfolios don’t consistently beat their benchmarks on a pre-tax basis, often producing negative alpha on an after tax basis. That is why creating Tax Alpha is important. If pre-tax alpha is positive, tax planning can increase the excess.
75 Tax Deductions (plus two bonus deductions)
- 1. Accounting fees
- 2. Advertising
- 3. Amortization
- 4. Auto Expenses
- 5. Banking Fees
- 6. Board Meetings
- 7. Building repairs and maintenance
- 8. Business Travel
- 9. Business association membership dues
- 10. Charitable deductions made for a business purpose
- 11. Children on Payroll
- 12. Cleaning/janitorial services
- 13. Cameras
- 14. Collection Expenses
- 15. Collection Expenses
- 16. Computers and tech supplies
- 17. Consulting fees
- 18. Continuing education for yourself to maintain licensing and improve skills
- 19. Conventions and trade shows
- 20. Costs of goods sold
- 21. Credit card convenience fees
- 22. Depreciation
- 23. Dining and Office food
- 24. Drones
- 25. Education and training for employees
- 26. Equipment
- 27. Exhibits for publicity
- 28. Franchise fees
- 29. Freight or shipping costs
- 30. Furniture or fixtures
- 31. Gifts for customers ($25 deduction limit for each)
- 32. Group insurance (if qualifying)
- 33. Health insurance
- 34. Equipment repairs
- 35. Health Reimbursement Arrangement
- 36. Health Savings Account
- 37. Home Office
- 38. Interest
- 39. Internet hosting and services
- 40. Investment advice and fees
- 41. Legal fees
- 42. Leased Vehicle or equipment
- 43. License fees
- 44. Losses due to theft
- 45. Materials
- 46. Maintenance and janitorial
- 47. Mortgage interest on business property
- 48. Moving
- 49. Newspapers and magazines
- 50. Office supplies and expenses
- 51. Outside services
- 52. Payroll taxes for employees, including Social Security, Medicare taxes and unemployment taxes
- 53. Parking and tolls
- 54. Pass-Through 199A Deduction
- 55. Pension plans
- 56. Postage
- 57. Prizes for contests
- 58. Real estate-related expenses
- 59. Rebates on sales
- 60. Rent
- 61. Research and development
- 62. Rental Property
- 63. Retirement plans
- 64. Royalties
- 65. Safe-deposit box
- 66. Safe
- 67. Spouse on Payroll
- 68. Social media advertising
- 69. Software and online services
- 70. Storage rental
- 71. Subcontractors
- 72. Taxes (Personal and Real Property)
- 73. Telephone
- 74. Utilities
- 75. Video equipment for business YouTube channel
- 76. Website design
- 77. Workers’ compensation insurance
Another key point: Keep good records. “Track every single expense related to your business and comb over them with your tax preparer at the end of the year to ensure you only take legitimate deductions.”
“Good record keeping and thoughtful consideration will minimize your risk of an audit if the IRS ever comes knocking.”
75 Best Tax Strategies
- IRA and Roth IRA Strategies,
- Capital gain/loss strategies,
- Bond income strategies,
- Dividend income strategies,
- Option transaction strategies,
- Qualified retirement plan distribution strategies,
- Charitable planning strategies,
- Stock option strategies,
- Specialized investment strategies,
- Strategic tax alpha strategies,
- Tactical tax strategies, and
- Trust and estate strategies.
