Understanding The IRS"s Largest Tax Loopholes, Can Lead To Your Own Financial Growth
To best understand this article, you may want to review a Schedule A, of the 1040.
To find the IRS's largest loophole you only have to look on Schedule A - Itemized Deductions.
Go down to the section that says (on the left) Interest You Paid -- Note.
Personal Interest is not deductible.
Now go down to around Line 29 (Schedule A - 2007) and you will see the limits that can be imposed upon your tax loophole.
On the Schedule A - 2007 the deductionlimit instructions.
If line 38, ( Adjusted Gross Income) of your 1040 is over $156,400 (over $78,200 if married filing separately) -- Your deduction is not limited.
Line 30,of this same year,says that if line 38 is under $156,400 ($78,2000 if married filing separately) then there may be limits on your deductions.
Mortgage interest, points, qualified mortgage insurance premiums,and investment interest are tax (loopholes) deductions -- that the IRS allows, for each tax payer.
Unlike Schedule C -- tax loophole of a small business, where the lost is only tolerated for 3 years, before the IRS wants to know if you are running a business or a hobby or an unregistered501(c)(3) non-profit -- So this makes Schedule A's, mortgage interest paid for your primary home, one of your top tax (loopholes) deductions.
Until you understand this fully, it may be hard to understand the more elaborate tax loopholes that top Tax Attorneys employ for their clients.
What many people don't realize is, that your primary home can be a 50 foot yacht, a $100,000 RV or a travel trailer.
It does not matter, as long as it is your primary residence.
(For legal clarification visit www irs.
gov) The IRS does not appear to care aboutthe particulars of your home purchase write offs.
In fact the IRS appears, to support the massive amounts of interest paid by taxpayers,for the nation's top tax loophole.
It is afact , you can use this same write off for 30 years or more.
And the IRS, as long as they receive a Form 1098 from your lender, appear to care less.
This is what we call a, set in stone, tax loophole.
Tax Accountants, Tax Preparers and Enrolled Agents complete the tax forms with the numbers provided by the clients.
After a certain number of years, we tend to look at the big picture -- (Schedule A of the 1040 is a form that allows tax payers to report deductions that they would ordinarily be taxed on) Back to the big picture, this is how the rich get richer.
When you stop wearing the shoes of the 'borrower" and start wearing the shoes of the "lender" -- your asset base changes and so will your income.
The golden rule works again:To the degree that you help others get what they want, that will be the degree of your success.
To find the IRS's largest loophole you only have to look on Schedule A - Itemized Deductions.
Go down to the section that says (on the left) Interest You Paid -- Note.
Personal Interest is not deductible.
Now go down to around Line 29 (Schedule A - 2007) and you will see the limits that can be imposed upon your tax loophole.
On the Schedule A - 2007 the deductionlimit instructions.
If line 38, ( Adjusted Gross Income) of your 1040 is over $156,400 (over $78,200 if married filing separately) -- Your deduction is not limited.
Line 30,of this same year,says that if line 38 is under $156,400 ($78,2000 if married filing separately) then there may be limits on your deductions.
Mortgage interest, points, qualified mortgage insurance premiums,and investment interest are tax (loopholes) deductions -- that the IRS allows, for each tax payer.
Unlike Schedule C -- tax loophole of a small business, where the lost is only tolerated for 3 years, before the IRS wants to know if you are running a business or a hobby or an unregistered501(c)(3) non-profit -- So this makes Schedule A's, mortgage interest paid for your primary home, one of your top tax (loopholes) deductions.
Until you understand this fully, it may be hard to understand the more elaborate tax loopholes that top Tax Attorneys employ for their clients.
What many people don't realize is, that your primary home can be a 50 foot yacht, a $100,000 RV or a travel trailer.
It does not matter, as long as it is your primary residence.
(For legal clarification visit www irs.
gov) The IRS does not appear to care aboutthe particulars of your home purchase write offs.
In fact the IRS appears, to support the massive amounts of interest paid by taxpayers,for the nation's top tax loophole.
It is afact , you can use this same write off for 30 years or more.
And the IRS, as long as they receive a Form 1098 from your lender, appear to care less.
This is what we call a, set in stone, tax loophole.
Tax Accountants, Tax Preparers and Enrolled Agents complete the tax forms with the numbers provided by the clients.
After a certain number of years, we tend to look at the big picture -- (Schedule A of the 1040 is a form that allows tax payers to report deductions that they would ordinarily be taxed on) Back to the big picture, this is how the rich get richer.
When you stop wearing the shoes of the 'borrower" and start wearing the shoes of the "lender" -- your asset base changes and so will your income.
The golden rule works again:To the degree that you help others get what they want, that will be the degree of your success.
