If you’ll allow me I need to get something off my chest.
What the heck does one’s tax returns have to do with whether or not that person can run this country?
I mean seriously? Really, what’s the point. If you know the answer, please share it with me by leaving a comment.
Do you walk around showing your tax returns to every Tom, Dick, and Harry?
Does your potential employer request to see your tax returns in the interview process?
No and No. It’s irrelevant!
The only thing this accomplishes besides adding to the poo flinging contest that is the Presidential Election is for you to get pissed off and wonder why the hell does Donald Trump get to live the billionaire lifestyle and claim almost a billion dollars in losses at the same time?
He’s a tax genius!
Because he takes advantage of every possible deduction he qualifies for under the sun.
Does he qualify for additional tax privileges you as an ordinary person or small business owner cannot?
Is it because he’s Donald Trump?
Cheating the system?
Knows something you don’t?
No, No, & No.
It’s because when you reach a certain income threshold, you’re entitled to certain tax breaks.
How does he get those?
Well, he decided to go to work and utilize his skill set and knowledge in real estate to amass a fortune. Also, taking advantage of business opportunities, which every businessman or businesswoman worth their salt will do.
What’s this called?
Capitalism. Donald Trump has taken advantage of the very thing that makes this country unlike no other.
By doing so put himself in position to realize benefits for those who choose to do so – i.e. getting tax breaks.
You may think well this is unfair. Or only those with money are allowed to take such deductions and you know what you’re right!
Just like if you have the money to pay for attorneys you can get off of anything (remember OJ?).
Money is power and when you have it and a lot of it, there are different rules for you. Right, wrong, or indifferent that is a cold hard fact.
Don’t like it?
Learn a skill, solve a problem, or be so damn good at what you do that people are forced to make it rain with cold hard cash in your direction.
And if you think it’s Donald Trump’s patriotic duty to pay taxes like some think it is – Mark Cuban, heck I’d say it’s even more patriotic to take advantage of all of your opportunities and that includes tax deductions!
What are your thoughts?
Since you and me are not on Donald Trump’s level in that we’re not billionaires (or at least not yet anyway) what types of ways can the average Joe utilize tax deductions personally or for say small business?
Please note: I am not a certified CPA and suggest you speak with your accountant about what would work best for your individual situation.
Types of Tax Deductions You May Qualify For If You’re Not Donald Trump
If you have children you may qualify for tax deductions.
Deductions and Tax Credits For Children and Dependents – Kiplinger.com
This is an exhaustive list of what types of deductions and tax credits you may qualify for. Here are a few of them.
- Child Credit
- Dependency Exemption
- Dependent Care Credit
- Earned Income Tax Credit
- 529 plans
Owning a home may qualify you for a tax deduction.
Home Ownership Tax Deductions – Intuit TurboTax
A couple of items from this list.
- Your Property Taxes
- Mortgage Interest On Your Primary Residence
- Home Improvements Required For Medical Care
If you’re self-employed.
10 Tax Deductions & Benefits For The Self-Employed – Investopedia
Some you might find interesting.
- Health Insurance Premiums
- Home Office
- Internet and Phone
Being in this capacity before I was able to pay next to no taxes because everything is pretty much a write-off. This reduced my net income significantly.
Now, if I can do this as an average Joe, then you should not be surprised when someone like Donald Trump can write-off millions!
When you own rental property you’re entitled to additional tax deductions.
This a short list of expenses that can be deducted from your rental income.
If you’re a student you are eligible for tax deductions
You may be eligible for a tax credit in addition to a tax deduction. You’ll need to read on for more. Examples of a few types of tax deductions for education.
- Tuition and Fees
- Student Loan Interest
- Business Deduction For Work-Related Education
- Education Required by Employer or by law
If you own your own small business.
12 Small Business Tax Deductions – Bankrate
Let’s take a look at a few of these.
- Furniture (office)
- Software and Subscriptions
- Office Supplies
See, there are a number of ways that you, me, and any average Joe can utilize tax deductions to reduce our net income and pay less taxes!
So, this brings us back to where we started this conversation. Donald Trump is indeed a tax genius because he takes advantage of what is given to him in terms of tax deductions, just like you and I can.
And to hear Hillary Clinton say something to effect of “What kind of genius loses almost a billion dollars” makes me laugh from a business standpoint in that clearly her accountant sucks because she’s not getting those types of deductions and has to pay more taxes.
With that being said, Hillary you need to find a new accountant.
As for the rest of you. If you do not have an accountant. You need one. And if the one you have is not maximizing every possible deduction for you. FIRE THEM.
Remember you pay accountants a flat fee. They do not get a percentage of your income as compensation for doing your taxes.
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