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, health care insurance, vision, dental - by the time you deduct all of these, you AGI will be very low.
Buy rental properties plus your primary residence - deduct home owners insurance, HOA dues, property taxes, mortgage interest, PMI, maintenance, landscape, advertising, cleaning etc.
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Perhaps I am wrong, but I was under the impression that no insurance; health/ dental/ PMI was tax deductable?
Also condo fees are not tax deductable in New Jersey on a condo as far as I know.
Also don't see how you can deduct cleaning, landscaping, etc on a primary residence.
Perhaps I am wrong, but I was under the impression that no insurance; health/ dental/ PMI was tax deductable?
... Am I mistaken? I am certainly not a tax expert.
Health costs can be claimed when you itemize your deductions. A Schedule 'A' of the 1040 always you to deduct your medical expenses (including health and dental insurance premiums) to the extent they exceed 7.5% of your adjusted gross income (AGI).
We have used this write-off for many years, and we have gone through three audits.
So lets say you earn a lot of money through dividends. But you re-invest most of that money in stocks or other investments. But the money you keep is the money you use for living expenses such as property tax or insurance or groceries. than can the government tax you?
So lets say you earn a lot of money through dividends. But you re-invest most of that money in stocks or other investments. But the money you keep is the money you use for living expenses such as property tax or insurance or groceries. than can the government tax you?
I do not do dividends anymore. The last time that I did handle dividends and looked into it, there was very little that you could do to shelter dividend income. They were considered 'Capital Gains' and they were taxed separately.
Taxes of all sorts; property taxes, sales taxes, fuel taxes can all be used as a write-off. However very few people feel that it is worth the effort.
Insurance, if done primarily to allow you to conduct a business, can generally be written off. using a schedule 'C', 'E', or 'F'.
The only times when I have seen groceries written off, were for folks who owned and operated a catering service or restaurant.
So lets say you earn a lot of money through dividends. But you re-invest most of that money in stocks or other investments. But the money you keep is the money you use for living expenses such as property tax or insurance or groceries. than can the government tax you?
As I said before, dividends are taxable. Reinvesting those dividends doesn't make them any less taxable, if that's what you're asking.
Health costs can be claimed when you itemize your deductions. A Schedule 'A' of the 1040 always you to deduct your medical expenses (including health and dental insurance premiums) to the extent they exceed 7.5% of your adjusted gross income (AGI).
We have used this write-off for many years, and we have gone through three audits.
Health costs are deductible but premiums are not for families. It is a lame provision in the tax code that discourages people from buying their own health insurance apart from their employer. This, of course, exacerbates the insurance problem that we have in this country (for another thread...).
Premiums are deductible for businesses, including the self-employed. I take it from your posts that you are self-employed.
Health costs are deductible but premiums are not for families. It is a lame provision in the tax code that discourages people from buying their own health insurance apart from their employer. This, of course, exacerbates the insurance problem that we have in this country (for another thread...).
Premiums are deductible for businesses, including the self-employed. I take it from your posts that you are self-employed.
Self-employed? Sort of, I guess.
I had a 20+ year career for an employer who provided 'full' health coverage, but most of the health care providers that were provided to me and my family with trained OJT.
When we wanted health care from folks with a college background, we had to pay for it ourselves. So even though we had health coverage provided to us from my employer, we still had health expenses to write-off some years.
During that period of time my employer had me attend various courses of their own on budgeting and tax preparation, and courses taught by the IRS. They certified me as a 'Financial Specialist'. Where I counseled folks on: budgeting, building credit, investments, and tax planning.
My Dw and I had various 'for profit' activities during my active career, and we filed each of the 1040 schedules. So we have ran a number of businesses. And we collected apartment buildings on the side as a sort of hobby.
I was forced onto pension in 2001, due to my old age. They call it 'high-year-tenure', I was 42.
So now I receive my pension, we bought a farm [paid in full with cash], and today I sell farm produce at Organic Farmer's markets.
We still file a 1040 with a schedule 'C', and a 'E', and an 'F'. Which are the same IRS forms that we filed before I retired.
My pension includes social security and Medicare tax contributions, they are both subtracted from my pension checks.
I do not pay separately any social security and Medicare taxes.
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