One of the items discussed in the article concerns a legitimate tax deduction with a special personal twist:
"We were going over their tax information and the tax manager asked the gentleman, 'Now what about the mortgage interest deduction for the condo in Utah?' Unfortunately, the wife didn't know about the condo in Utah, where he had set up his mistress. It was a big 'oops' moment."
I recall a similar incident recounted by then Director of the NJ Division of Taxation Bob Thompson while addressing the NJ chapter of NATP on the subject of sales and use tax audits. It seems that the Division had acquired the records of a New York state jeweler and was contacting all customers who had items shipped to a New Jersey address without paying sales tax on the purchase. The Division was looking to collect NJ “use” tax on the purchases.
The Division auditor had called the home of a NJ doctor who had purchased two identical diamond bracelets. The doctor’s wife answered the phone. After the auditor explained the situation the wife replied, “But sir, you must be mistaken. My husband only bought one diamond bracelet!”
The auditor never did find out who got the second bracelet, but he had a pretty good idea it wasn’t the doctor’s mother.
* The Small Business Taxes and Management website has posted a Special Report on “Federal Tax Provisions Expiring 2006-2020”. It seems that 42 separate items will expire in 2007 – the year with the biggest list. I would have thought that 2010 would have had the longest list.
* Andy at MONEY WALKS gives a good introduction for those of you interested in investing in mutual funds in “Mutual Funds 101".
* In light of the new passport rules, Jim at Blueprint for Financial Prosperity has provided some helpful instructions on "How To Get A Passport."