I really couldn't pass up this book. Paying 30-40% of your income every year to taxes makes you do crazy things. This will help you learn the difference between tax deductions and tax credits, identifying all of the deductions you are allowed, and what changes have been made to tax laws in the last few years. It also includes information on the all-so-popular tax audit. There is tons of information in this book! I can not believe how big this book is! It's 667 pages (and no pictures) so that's a lot of reading and deducting!
I bought this book earlier this month because I wanted to get a head start and be prepared when tax season rolled around. The new edition of "How to Pay Zero Taxes" came out in December 15, 2001 a week after I made this purchase. You will probably find this particular addition pretty cheap now since there is an updated one out. If you're interested in the newest edition, it will say "2002 Edition" in yellow on the top right corner. The cover looks the same. The format will be the same with this years changes updated in the information.
About the Author
The author, Jeff A. Schnepper, is an authority on taxes. He has written 19 editions of this book. He has a tax and legal service in New Jersey. He is also a columnist for Microsoft's "Money Central" site.
Comparing the Book to the IRS
Earlier this year, I read the entire IRS website because I didn't know that this book existed. Although it's cheaper to read for free online, it's much more convenient to have it in writing, especially when you have to go back and get that information at tax time.
I find that this book has pretty much the same information that the website does. The author summarizes the information a little bit more and adds some tax strategies to think about. With that said, if you do choose to make a deduction based on a strategy that you read in the book, I would recommend checking the IRS publication also to CYA and to make sure there aren't any specifics that weren't mentioned.
For example, I am making a deduction for moving expenses. The author gives a 4 page description of related moving expenses and does a really good job explaining what criteria needs to be met to take the deduction (such as the start of work test, distance, and selling your house)and what can not be deducted, but he left out or didn't explain in detail some items that can be deducted. For example, transporting vehicles (not driven) and pets, storage, packing supplies, .10 a mile, moving outside of the country, military related, and a few more. It also doesn't say what form you need to fill out.
A lot of people that I know put their taxes on auto pilot because they have H&R do their taxes so they don't worry about tax cuts and assume their accountant will handle everything for them. I use to wait until April and then research to see if I could get tax cuts and that doesn't work very well. When you know the cuts ahead of time, you can make better decisions during the year and save the appropriate paperwork.
Comparing this book to other Tax Books
I usually end up reading about tax cuts in financial books. I find the information in financial books a little more helpful than this book because the financial book will take a situation and then show you a way to maximize your tax cuts. In "How to Pay Zero Taxes", you will have to analyze your situation and then look the information up in chapters that you think it might be in. (Great if you're bored and have all of the time in the world).
Unlike financial books, "How to Pay Zero Taxes" this book mentions every tax break. The book claims that it lists "every" break.
Contents
Is it legal?
How our tax system works
Exclusions - tax free money
- Alternative to "earned money"
- Donative items
- Investors
- Benefits for the elderly
- Miscellaneous individual exclusions
- Schedule of excludable items
Credits-dollar-for-dollar
- Estimated tax and withholding exemptions
- Credits
- Special Credits
"Above the Line" Deductions
- Deductions for adjusted gross income
"Below the Line" Deductions
- The importance of filing status
- Tax planning with itemized deductions
- Schedules of deductions
Traditional Tax Shelters
- Deferral and leverage
- How to analyze a tax shelter
Super Tax shelters
- Family shifts
- Running your own business
Investment planning to save taxes
Last-minute tax planning
The attorneys' and accountants' relief act of 1993
Stealth tax reform
Tax reform - again!
The internal Revenue Service Restructuring and Reform Act of 1998
How to Avoid/Survive an IRS Audit
Cost recovery/depreciation
Law prior to the tax reform act of 1986
Law after March 14, 1998 (real estate)
Business use of "listed property"
Auto leases
Index
Reading
There will be sections in this book that you will totally skip because they won't apply to you in any way. For example, I skipped the 9 pages on Benefits for the Elderly, and also the whole section on cattle feeding and cattle breeding programs.
There will be sections in this book that may not apply to you now, but will probably be useful things to know, such as deductions on fires and theft. If you don't keep proper documentation when it happens, it may be too late by the time April rolls and you won't be able to take the tax cut.
There will also be sections that apply directly to you. Even if you know about the deduction, it's helpful to read over it because things change every year. For example, most people are familiar with the Earned Income Credit, but it has some changes due to inflation and change in requirements.
Do You Need The Book?
This book cost $15 and I'm pretty confident that you will find at least $15 worth of deductions in the book.
I think that it will help you PLAN for the next years taxes, gets you thinking about what tax cuts there are for you, and give you a review of what changes to look for.
I think this would be great for someone who has never had deductions before or have outgrown the EZ forms and are not familiar with tax breaks.
This is ideal for people who are afraid to take tax breaks because they don't want to get in trouble. The author writes strictly on the conservative side. It's very detailed on what you can not deduct. I've read other books with more controversial/sketchy deductions. I don't believe any of these deductions mentioned would trigger an audit or would be questioned by the IRS.
As For Me
As for me, I will not buy this book in future years. There's not a lot included that can't be found in the IRS website and I prefer a more strategic pro-active approach to deductions. I have read a lot of books that describe tax plans which strategies what you need to do to maximize your deductions. Although there was plenty of information, I just didn't find the strategies in in this book that I was looking for. Sure, I could come up with my own from all of the listed tax breaks, but since I'm not a tax expert I always wonder if my interpretation will be legal.
Who Would NOT like this book
If you are an accountant or sharp on taxes I will bet you already know this information.
If you're looking for gray areas between the black and white, you won't find them in this book.
Where to Buy the Book
This book is sold at most book stores and will probably be out of stock in April. To maximize the benefits of this book, you'll need to buy it a year in advance.
Recommended:
