are always on the lookout for things they can claim that will end up reducing
their tax liabilities, but the ways in which they may try to do so might not
always be the most beneficial, and might even lead to trouble down the road.
Therefore, it's often wise for consumers to brush up on what they can and
cannot claim as deductions so that they avoid running afoul of the Internal
One of the
things that may lead to significant issues in this regard is people trying to
get deductions which have expired since the last time they were
claimed by those people, according to a report from New Orleans
television station KSHB. For example, Americans could once write off the
sales tax they paid when buying a new car, but that deduction is no longer
valid. Likewise, they cannot claim the Kelley Blue Book value of cars they
have donated to charity, and a number of tax breaks that existed for consumers
who tried to make their homes more energy efficient have expired as well.
Therefore, if a consumer is thinking about trying to claim any of these, it
might be wise to look into whether they actually exist today. Simply assuming
they do can lead to major problems and much larger tax bills down the road.
even bigger misstep
Another mistake people often make is claiming things which are in fact not
allowable deductions at all, the report said. Often, these are the result of
very common misconceptions that can be based in reality; for instance,
consumers are able to deduct the points they pay at closing when they buy a new
home, and as a result many who refinance their existing mortgages may think the
same tax break applies to them. However, this is not the case. In addition,
because certain types of things related to traveling for business are
deductible, many consumers fall into the trap of thinking this is also true of
their expenses for simply driving to work, but that's not the case.
consulting with a tax professional will help consumers to better understand all
the deductions for which they may be able to qualify, and that, in turn, will
help them avoid complications down the road that can arise from improperly
For a more
in-depth look at Liberty Tax Service, visit the Give Me
Liberty! Magazine. Follow Liberty Tax on Facebook and on Twitter or contact
Liberty Tax directly at 1-877-at-Liberty.