| Even though who consider themselves in the financial | | | | keeps track of all bank accounts and automatically |
| loop may fall prey to some of the most common tax | | | | balances them is a lifesaver. Failing to use a good one |
| or bookkeeping mistakes. Changing tax codes and | | | | is a common bookkeeping and tax mistake. |
| updates or revisions to tax law can be one challenge. | | | | Procrastinators, take heed, and find the right software, |
| Then there are more frequent errors that shouldn't be | | | | including ones that keep track of business inventory. |
| made - but they are. Sometimes it comes down to a | | | | With so many options available, there really isn't any |
| misinterpretation of what tax code language means | | | | excuse to avoid simplifying one's life. Keep financial |
| and that can result in saving the wrong records or not | | | | records organized and tax season might not seem so |
| keeping track of important expenses. | | | | ominous. |
| This year, those buying a new home face a challenge | | | | Many people let deductible automobile expenses slip |
| when it comes to Tax Form 5405, allowing new home | | | | by. This is among the most frequent tax mistakes |
| buyers to deductions. Some taxpayers assume that | | | | made because taxpayers get confused about how to |
| new homeowners must never have owned a home | | | | keep track of deductions properly. They also forget |
| before. That simply isn't true. Even those who are | | | | what is truly eligible as a deductible tax expense. They |
| buying a new home - but have already owned another | | | | need to become familiar with standard mileage |
| home - can get this deduction if they meet the | | | | deductions to and from work, automobile depreciation |
| requirements, which include living in the home at least | | | | information to put on tax forms and more. To be on |
| five out of the previous eight years. By assuming that | | | | the safe side, check with tax professionals for |
| 2nd or 3rd time homeowners aren't eligible for this new | | | | acceptable deductions. |
| homeowner credit, a significant tax deduction could be | | | | Taxpayers should never forget that they need to |
| lost. Unfortunately, it looks like this is going to be a | | | | record their cash purchases and have records to |
| common tax mistake, with a potential loss of | | | | prove how the money was spent. Save those |
| thousands of dollars in deductions. | | | | receipts and even write the word "cash purchase" on |
| When it comes to knowing which receipts to keep and | | | | them if you need a reminder. This includes petty |
| which to toss, a common tax error is misinterpreting | | | | cash and gifts given as cash. Don't fall prey to the |
| the advice not to save receipts less than $75. True, | | | | common tax error and assume that cash doesn't |
| the receipt isn't recorded but if ever audited, a | | | | count. It absolutely does, especially at tax time. |
| taxpayer will have to provide some evidence of | | | | Other areas worth double checking at tax time include |
| having been at a particular location, including details | | | | gifts given to children or others, becoming familiar with |
| about business associates who were there and more. | | | | the latest tax updates and codes and double checking |
| Wouldn't it be simpler to keep the receipt? Even if not | | | | with a good accountant to make sure nothing was |
| required, it could make record keeping so much easier. | | | | forgotten. If you made the mistake of lumping business |
| Wait till the last minute to gather up your records and | | | | and personal expenses on one credit card, try using a |
| you could have a major headache as well as wasted | | | | single credit card for business expenses and avoid |
| time and extra stress. A software package that | | | | that bookkeeping mistake next tax season. |