Tax loopholes

10 Jul

Tax loophole has a rather illegal sound to it as in I have to beat the system so I will find a loophole. Or, my lawyer found a loophole in the contract, you’re screwed.

In fact, so-called loopholes are simply provisions of the tax code that allow certain deductions, write-offs, exemptions, etc.

Depreciating a private jet is no different from deducting home mortgage interest or paying health insurance premiums with pre-tax dollars under Section 125 of the IRC. One persons tax norm is another’s loophole. Politicians seem to forget these tax laws were written by Congress.

Be careful getting on board the loophole bandwagon, the largest ones may well be those most important to you.

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