As we noted in our last post, deductions can help you reduce your gross income as you work towards reaching your taxable income. It is this definition of “income” that will determine how much in taxes should be paid. This could result in you getting a refund check...
Finding Real Life Solutions To Your Tax Problem
Attorney Robert T. Leonard
Los Angeles Tax Law Blog
How you can use donations to reduce your taxable income
As more people participate in “refund season,” the more people are looking for deductions that can be applied to their income tax statements. As we have noted in prior posts, deductions can reduce your taxable income so that less taxes will be...
When can loan interest be deducted?
At this time of year, it is critical to figure out one’s taxable income.Why is this? The answer is simple. If, based on your taxable income, you have paid more in taxes over the last year, the federal government will issue you a refund. Most people understand...
If you think you paid more in taxes, you’re probably right
The saying “It’s refund season” is more than just a catchphrase. For many Americans, it is a reality that fuels their entire year. For the next coming weeks, millions of returns will be filed with the hope (or expectation) that they will receive money back. However,...
Life events that have tax implications
There’s an old adage regarding the payment of taxes. Essentially, there are two certainties in life: death and taxes. In fact, taxes have been a part of your life since you were born, and you will certainly have to deal with them until you pass away.If you are...
Is Uncle Sam entitled to your gambling winnings?
Last week’s Powerball drawing made national headlines as the ultimate jackpot eclipsed $1 billion for the first time. While many people did not want to join in on the 1 in 292 million chance of getting all the numbers correct, scores of people bought tickets...
Could your ignorance be viewed as tax fraud
The federal income tax filing deadline is not for a few months, so dealing with the IRS may not be at the forefront for you in January, but your actions between now and then could subject you to civil or criminal penalties.This is because there may be a difference...
Why bunching expenses may be helpful
In our prior posts, we have discussed the finer points of what goes into determining what your taxable income is. Essentially, it is your total gross income minus allowable exemptions and deductions. Indeed, many people rely on deductions to lower their income (and in...
How capital losses can reduce your tax bill
With many stocks meandering near the end of the year, some stocks in your portfolio may be as useful as your depleted fantasy football team. However, while these underperforming stocks may cause you some heartache, they could actually be a ray of sunshine when tax...
How deductions can help reduce your taxable income
In our prior post, we highlighted the basics in how total gross income is calculated within the process of arriving at one’s taxable income. Essentially, gross income is calculated by including all of the income that you collect during the calendar year,...