As a follow up to the last post, there is a point that needs clarification.   First let me explain cash flow and how it may differ from the tax results.  For example, suppose you own a rental property that provides a positive cash flow – rental income less all expenses – of $200/month.  You might think that this would produce $2,400 of taxable income for the year.   Actually this rental will most likely produce a

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OK, everyone is familiar with the phrases above but let me make a revision to the 1st one – Don’t let the tax tail wag the dog.    Any decision should make economic sense before jumping into something to save some taxes.   A few examples of letting the “tax tail wag the dog” are: Running out to buy an OVERSIZED 6,000+ lb. SUV in the last week of December for the sole purpose of getting the

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Many people would argue that getting a large refund is a great thing. At face value it is - if given the choice of owing money come April 15th or getting a large refund I would definitely choose getting a large refund 10 times out of 10. Now, on the other hand, if I could determine, from all possible scenarios, what my outcome would be, I would choose either breaking even or even owing a

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Too often we plan for things that may or may not happen. Auto insurance in case of an accident; homeowners insurance in case of a fire. But we don't spend any time planning for things that will definitely happen - taxes and

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