Tax Avoidance is Legal! The Complete Guide to Individual Income Tax

Book Synopsis: As I open this book, there is a deadline that is looming. Congress and the President are in a deadlock over something called the Fiscal Cliff. The fiscal cliff is a term that was coined by the Chairman of the U.S. Federal Reserve Ben Bernanke in February 2012. The term is used to describe the impending fiscal crisis of 2012. The term itself refers to the economic effects that could result from tax increases, spending cuts, and a corresponding reduction in the U.S. budget deficit beginning January 1, 2013. If the laws remain unchanged, we could see an expiration of the 2010 Tax Relief Act, which extended the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) commonly referred to as the Bush Tax Cuts. If the Bush Tax Cuts were to expire, tax rates on everyone would go back to where they were in 2001. Today the tax brackets range from 10% to 35%. The tax brackets from 2001 were 15% to 39.5%. Everyone’s tax rates would be raised if we go over the Fiscal Cliff. Even further, the Alternative Minimum Tax (AMT) would be imposed on 26.4 million taxpayers with incomes ranging from $30,000.00 and above. The average tax increase would be $2,000.00, in addition to the tax brackets rising. By the time you read this book, and probably by the time that I finish it, we will know the answer of whether or not we went off the fiscal cliff. In my fifth book, I would like to examine and detail a philosophy that I have about taxes. Tax Avoidance is Legal! That’s right! Even the Supreme Court agrees with me. “The right of a taxpayer to decrease the amount of what would otherwise be his taxes, or altogether avoid them, by means which the law permits, cannot be doubted.” (Gregory v. Helvering 293 U.S. 465). To avoid is legal, however to evade is criminal. In my first book: It Starts With an Idea – Tax Tips for Small Businesses, I examined the world of small business taxation, and provided sound tax tips for business owners. In my second book: The Ultimate Guide to Real Estate Taxation, I explored tax strategies for real estate investors. In my third book, Everything That You Wanted to Know About the IRS – Audits, Appeals, and Collections, I examined the IRS and their tactics in Audits, Appeals, and Collections. My fourth book, The Complete Guide to the New Tax Law – American Taxpayer Relief Act of 2012, I examined the fiscal cliff and its consequences. In this book, I want to go through taxation of individuals. In my years of practice, I have specialized in small business taxation. I provide business tax consulting and planning. Typically, the individual income tax returns that I do are very complex. They involve a lot of schedules and a lot of planning throughout the year for the individual. This book will help the person that has a complex tax situation, as well as the person whose situation is simpler. In this book, we will investigate: • The History of the Federal Income Tax • A Discussion on Income • Tax Credits and Tax Deductions • Free Money • Tax Avoidance Strategies Read more