You might be wondering how to find out if you qualify for tax deductions. This is a hot topic for many people. For most people that use the internet, they usually just Google the answer. You can Google just about anything, but what you find may not be peer reviewed or have IRS approval. Everyone’s trying to pay as little tax as possible within whatever the government allows. There’s a lot of different information out there. You just want to be able to find credible sources for that if you’re looking it up on your own.
What is a Credible Source?
Your neighbor next door that you run into on a Saturday probably doesn’t have the full scoop on our new tax law change. Unless, of course, that person happens to be a CPA. But not all CPAs are created equal. We have accountants as clients of ours who don’t do taxes. They have other areas of expertise. I would take whatever they say with a grain of salt. If they have an interesting idea, then do some of your own research and seek out professionals.
A lot of our clients that have existing successful businesses are in mastermind groups. They get a lot of ideas from these mastermind groups. You have to remember that not every tax law is going to be pertinent to you. It really will depend on what makes sense for your tax situation. Because even if you are in a group of, say, small business owners, it does not mean that their businesses are in the same place as yours. Do they have employees to worry about? What’s their revenue that they’re pulling in versus what they’re taking home? You don’t know any of those things. That will be what changes the different types of tax strategies.
How to Find Out if You Qualify for Tax Deductions
How to find out if you qualify for tax deductions depends on the situation. What are the different circumstances that the business is operating in? How do they operate? What is their industry? Depending on your set of circumstances and situation, you could be eligible for certain deductions or you may not be. Then there’s your risk tolerance to how closely you toe the line on the rules. There’s a gray area just like any other parts of the law. That’s why there’s tax cases and court cases out there supporting or denying certain positions that people will take.
If you’re looking the tax law up online and there’s an article posted by a CPA firm, then it’s probably a pretty credible article. However, generally those things are just opinion pieces. They’re not quoting regulations, law, or court cases.You have to see if it is an opinion piece or if they are quoting these government sources.
Most CPA firms are trying to cover a broad range of clientele. We try to get awareness out there, but it doesn’t mean that every piece of advice is going to apply to everyone. When we talk to clients, we don’t read the tax law. Most just want the high level, the basic explanation of what we can do and how we can do it. Not quoted regulations and quoted court cases. We are the ones who will interpret that and provide that feedback.
Take Our Masterclass
The biggest takeaway from this blog is to be careful. Do some of your own research and ask a professional if you’re in doubt. Make sure that you’re using credible sources. One credible source is our online masterclass, 3 Biggest Financial Mistakes New Business Owners Make. Sign up today!
