Tags: Wealthy | Americans | tax | deductions

Washington Post: Wealthy Americans Benefit From Many Tax Deductions

By    |   Monday, 13 April 2015 06:40 AM

While government programs to aid the poor receive a lot of public attention, the wealthy aren't exactly neglected by Uncle Sam. There are plenty of tax benefits for them.

The Washington Post lists 10 of them. Here are three:
  • The yacht tax deduction. Interest you're paying for a boat is tax-deductible if the boat has sleeping quarters, a kitchen and a toilet. That's because it can then be considered a second home, making mortgage interest payments on it deductible.
  • Rental property. If you own a home that you rent out, you can deduct expenses related to renting it, including repairs, advertising, home-owners association fees and mortgage interest.
  • Tax preparation. "If you have hired an accountant to help you sort through all of these tax breaks to make sure you maximize them, you get to write off that expense, too," write Post reporters Emily Badger and Christopher Ingraham.
Meanwhile, with less than a week until tax deadline day, personal finance website WalletHub has compiled a list of last minute tips from 16 tax experts to make the process a bit less painful.
  • "Don't try to hide" if you don't have the money to pay your tax obligation, the WalletHub summary says. "You're not going to slip through the cracks, and the IRS has proven far more willing to work with people when they're straightforward about their ability, or lack thereof, to meet tax obligations."
  • "Watch out for scams" — everything from tax refund theft to phishing and illegitimate tax servicing companies.
  • "Make an IRA Contribution." You can allocate up to $5,500 for most people and $6,500 if you're 50 or older. "Just make sure to send the contribution by April 15 and notify the deposit institution that you want it counted for 2014 tax purposes."
  • "Reevaluate withholdings." If you're receiving a refund every year, that's not a good thing. It means you're giving the government an interest-free loan every year.

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While government programs to aid the poor receive a lot of public attention, the wealthy aren't exactly neglected by Uncle Sam. There are plenty of tax benefits for them.
Wealthy, Americans, tax, deductions
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2015-40-13
Monday, 13 April 2015 06:40 AM
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