Lower Your Taxes - BIG TIME! 2019-2020 summary

Understanding the Tax System

In Lower Your Taxes - BIG TIME! 2019-2020 by Sandy Botkin, we begin by understanding the tax system. Botkin, a former IRS attorney, explains that the tax code is a series of incentives designed to encourage certain behaviors. He emphasizes that the tax code is not a punishment, but rather a tool to help you keep more of your hard-earned money.

Botkin introduces the concept of the 'tax loop hole' and explains that these are not illegal, but rather incentives put in place by the government to encourage certain behaviors. He encourages readers to take advantage of these incentives to lower their taxes.

Maximizing Deductions and Credits

Next, Botkin delves into the various deductions and credits available to taxpayers. He explains that deductions reduce your taxable income, while credits reduce your tax liability dollar for dollar. He provides a comprehensive list of deductions and credits available to individuals and small business owners, and offers strategies to maximize these benefits.

Botkin also discusses the importance of proper record-keeping and documentation. He emphasizes that the burden of proof is on the taxpayer, and without proper documentation, deductions and credits can be disallowed by the IRS. He provides practical tips on how to maintain accurate records to support your tax claims.

Business Tax Strategies

For small business owners, Botkin provides a wealth of tax-saving strategies. He explains the benefits of incorporating your business, setting up retirement plans, and hiring family members. He also discusses the home office deduction, vehicle deductions, and other business-related expenses that can be deducted from your taxes.

Botkin also covers the tax implications of different business structures, such as sole proprietorships, partnerships, and S-corporations. He explains the advantages and disadvantages of each structure from a tax perspective, helping readers make informed decisions about their business entities.

Investment and Real Estate Tax Strategies

When it comes to investments and real estate, Botkin provides valuable tax-saving strategies. He explains the tax benefits of different investment vehicles, such as retirement accounts, 529 plans, and health savings accounts. He also discusses the tax implications of different types of investment income, such as dividends, interest, and capital gains.

For real estate investors, Botkin explains the tax advantages of owning rental properties, including depreciation, deductions for expenses, and 1031 exchanges. He also covers the tax implications of selling real estate, including capital gains and the home sale exclusion.

Year-Round Tax Planning

Botkin emphasizes the importance of year-round tax planning. He encourages readers to make tax-saving decisions throughout the year, rather than waiting until tax season. He provides a list of tax-saving actions that can be taken at different times of the year, helping readers stay proactive in their tax planning.

In conclusion, Lower Your Taxes - BIG TIME! 2019-2020 by Sandy Botkin is a comprehensive guide to understanding and minimizing your tax liability. Whether you're an individual taxpayer, small business owner, or real estate investor, Botkin provides valuable strategies to help you keep more of your money and pay less to the government.