An ever growing percentage of tax filers are using paid taxprofessionals despite the prevalence of do-It-yourself tax software programs.
A professional tax executive has education and experience: They also have college credits in both finance and accounting, and prepare hundreds of returns. Most tax execs take continuing education classes to stay up-to-date on the ever changing tax laws.
Despite these facts tax exec will list some tax tips and information for people who like to do their own taxes. Everyone likes to pay the least tax possible. Most regard paying as little in taxes as possible as both a duty and an obsession. We all hate to give up huge chunks of our hard earned money to the government in taxes.
There is a very distinct difference between tax avoidance and tax evasion. One is a way to minimize your taxes as much as possible and is legal. The other is trying to fool the taxman by not reporting your income fully and is illegal. For the purpose of reducing your tax bill your best recourse is a tax shelter. Using your tax shelter to minimize your tax bill is perfectly legal and is used by smart people everywhere.
A tax shelter is defined in the Tax Act as any property for which a promoter represents that an investor can claim deductions or receive benefits which equal or exceed the amount invested with-in four years of its purchase. One attractive feature of tax shelters is that they provide you with deductions with-out requiring cash contributions on your part because assets are being purchased with borrowed money.
Example: Make a donation to charity and receive a charitable donation receipt. Your receipt is worth a % in tax credits on your income tax return. You could also apply for a loan with the intention of purchasing goods to be donated to charity. If accepted the charity will issue you a charitable receipt for the goods donated. Claim the charitable receipts and enjoy the tax credits on your return.
Always remember that no receipt = no deduction.
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