First, don’t leave deductions on the table. Over the years, Tom has met with far too many new clients who have knowingly given up thousands in legal tax savings because they thought a certain type of deduction would increase their risk of being audited. That’s crazy! Don’t skip deductions to which you are entitled. And, if your tax advisor is coaching you to do so, it’s time to get a new advisor!
Second, play by the tax rules. While the tax law is always changing, one thing stays the same: Most of the law tells you in great detail how you can reduce your taxes. The key is understanding and following the rules.
That’s where a great tax advisor who uses a proven tax reduction system comes in. Home offices, meals, travel, significant purchases and more can all be deductible if you understand the system. This knowledge opens up a whole new world when it comes to building wealth. The other part of playing by the rules is keeping proper documentation. Again, having a system is key. By maintaining the right documentation, you’ll maximize your tax savings and — as an added bonus — reduce your audit risk.
Third, don’t talk to the IRS. Tom tells all his clients to never, ever talk to the IRS. That’s his job. If you’ve been following the tax rules, you have nothing to fear from an audit. But let your tax advisor put their training to work on your behalf. If your tax advisor seems uncomfortable with this idea, this is another sign that it’s time to make a change.
Fourth, keep your wealth and tax strategy up to date. No matter what’s happening in Washington, it is possible to make way more money and pay way less tax. You just need to use the right system. If you’re ready for a proven tax-reduction system, our team is available to help. Reach out and schedule a call with the team at TFW Advisors® today!