I’m never good at bookkeeping! I can never understand those ledgers that need to be filled up with dizzying numbers even if my own life depends on it! I would rather pay somebody to do it for me if I have the money. I even went as far as looking for ways to “outsource” it i.e hiring somebody from afar to keep tabs for me—again, if only I have that kind of money!
Due to my ignorance on how taxes work, I have to call my accountant again and again until his ears bleed. Fortunately, he is the kind of man who possesses such uncanny amount of patience to clients like me. I guess he finds me “bearable’. To compensate, I try to find ways to somehow lessen his burden and at the same time, lower my taxes hence, tax breaks.
When someone in my senior group talks about tax breaks, I’m all ears! I jot it down on a piece of paper in case I forget then add it to my little “tax tricks book” which I consult from time to time, as soon as I get home. For your information, tax breaks work similar to tax exemptions, so if and when you have a tax break, it also means you save a lot on your tax come filing day. Here are some tax breaks you might find interesting:
·    If you are a senior age 65 and above, you automatically get a deduction, more if joint filing i.e spouses.
·    Engaging in charitable activities—actually dipping into your pocket for a cause. Your government sure has a soft spot for those who help their fellow citizen! Even a simple hiring of help to care for your senior or children while you go volunteering counts.
·    Bug your doctor instead. Anything that your doctor tells you to do in order to keep your body healthy can be entered for your tax break.
·    Examine your property taxes. They are deductible.
·    Job related moving. Just make sure that you report to work in your new location within a year or else your move is not counted.
·     Start your own business and savor tax deductions for your first year in business!
·    Send your employees to training and courses. You can even send yourself to these classes and still get a deduction!
·    Business meetings to somewhere far and relaxing. As long as a business meeting will materialize, you can write off your trips.
·    First time homeowner? You qualify for homebuyer’s credit.
·    A disaster hit you just recently? Go get a tax break. This includes bankruptcy, lost job and natural disaster.