TRACY BYRNES (HACKENSACK, NEW JERSEY) is Vice President of Women & Investing at Lebenthal Global Advisors, and has spent decades working at the intersection of money, markets, and tax policy—and translating all three into clear language anyone can understand. A financial journalist for over thirty years, covering tax, accounting, and personal finance issues, she is a contributor to NEWSMAX, and has been an on-air reporter for the FOX Business Network, and has written weekly finance columns for the New York Post and TheStreet.com. Byrnes spent five years as a senior accountant with Ernst & Young LLP, has an MBA in accounting from Rutgers University, and is the author of Break Down Your Money: How to Get Beyond the Noise to Profit in the Markets.The author lives & works in the New York City metro area.Learn More About Tax Strategies & Financial Freedom at TracyByrnesWealth.com

• Table of Contents to DEDUCT EVERYTHING!: Hundreds of Tax Tips, Legal Write-Offs, Credits, and Loopholes by Tracy Byrnes, MBA, CDFAAuthor’s NoteIntroductionCHAPTER ONE The Great Reset: Navigating the OBBBA Tax Landscape . . . . . .. . . 1TIP 1Standard Deduction: Higher and Permanent (IRC 63(c)) . . 2TIP 2SALT Deduction: A New Cap, a New Clock (IRC 164) . . . 4TIP 3Personal Tax Rates: Still Lower, Still Favoring  High Earners (IRC 1) . . . . . . . 4TIP 4Advisor Fees Aren’t Deductible—And Charitable Deductions Now Start After a “Floor” . . . . . . . 5TIP 5Child Tax Credit: More Families Qualify, More Refundable Cash (IRC 24) . . . . . . . . 5TIP 6Estate and Gift Tax: Stability Instead of Panic (IRC 2010(c); Treasury Regulation 20.2010-1(c)) . 6TIP 7Business Owners: Cleaner Rules, Bigger QSBS Wins (IRC 199A and 1202) . . . . . . . 8TIP 8Above-the-Line Deductions (2026–2028 Only) . . . . . . . . . 10TIP 9The Mandatory Roth Catch-Up Rule: A Short-Term Hit for a Long-Term Win (IRC 219, 401) . . . .. . . . 11TIP 10IRS Digital Documentation Rules (IRC 6001, 6201) . . . . 12CHAPTER TWO From Cribs to Canes: How the OBBBA Unlocks Tax Breaks for Kids, Workers, and Retirees 13TIP 11Track Your Overtime Carefully—Only the Premium Is Deductible . . . . . . . 13TIP 12You May Deduct Up to $12,500 (Single) or $25,000 (Married Filing Jointly) . . . . . . . . 14TIP 13Your MAGI Affects Your Deduction . . . .. . . . . 14TIP 14Keep Pay Stubs and Overtime Records Until Reporting Rules Are Final . . . . 15TIP 15Remember: You Still Owe FICA Taxes on All Overtime . . . 15TIP 16Prepare to Track Only the Overtime Premium (the “Half”) . 15TIP 17Understand the Two-Year W-2 Reporting Transition . . . . . 16TIP 18Do Not Reclassify Compensation: Beware of Anti-Abuse Rules . . . . . . . .  . . 17TIP 19Train HR and Payroll Teams Early . . . . . . . . . . 17TIP 20Understand That States May Not Follow Federal Rules . . . 17TIP 21Supercharged Senior Deduction (the New $6,000 Bonus) . 18TIP 22More Social Security Benefits Stay Tax-Free (the End of a 40-Year Problem) . . . . . .  . . . 19TIP 23Permanent 7.5% Medical Expense Threshold . . . . . . . . . . . 20TIP 24The New RMD Standard . . . . . . . . . . . . . . . . . . . . . . . . . . 21TIP 25Bigger Catch-Up Contributions for Ages 60–68 . . . . . . . . 22TIP 26Expanded Saver’s Credit for Seniors Who “Un-Retire” . . . . 23TIP 27Expanded Qualified Charitable Distributions (QCDs) (IRC § 408(d)(8)) . . . . . . . 25TIP 28Credits for Caregiving and Aging-in-Place Financial Support . . . . . . . . . . . 26TIP 29Higher Deductions for Long-Term Care Insurance Premiums . . . . . . . . . . 28TIP 30Maximize Annual Contributions ($5,000 Limit) . . . . . . . . 32TIP 31Look for a Potential Employer Match (Up to $2,500) . . . . 33TIP 32Prepare for Taxable Withdrawals After Age 18 . . . . . . . . . . 33TIP 33Expect Low-Cost, Index-Based Investments Only—No Stock Picking, No Crypto . . . . . . 33TIP 34Don’t Miss the Dell Foundation’s $250 Seed Money (for Older Kids) . . . . . . . . 34CHAPTER THREE Gratitude with a Garnish: How to Keep More of Your Tips Under the OBBBA . . . . . . . 39Tip 35Keep a Daily Tip Record . . . . . . . . . . . . . . . . . . . . . . . . . . 40TIP 36Report Cash Tips to Your Employer Monthly . . . . . . . . . . 40TIP 37New: Claim the $25,000 Tip Deduction (2025–2028) . . . 41TIP 38Tips Are Still Subject to FICA (Always Have Been) . . . . . . 43TIP 39For Tip Pools, Only Report Your Net Tips . . . . . . . . . . . . . 43TIP 40Understand “Uncollected FICA” on Your W-2 . . . . . . . . . 44TIP 41Report All Tips on Your 1040 (Even Noncash) . . . . . . . . . . 44TIP 42Pay Self-Employment Tax on Unreported Tips . . . . . . . . . . 45TIP 43Verify Allocated Tips on Your W-2 . . . . .  . . . 45TIP 44Self-Employed Workers Can Claim the $25,000 Tip Deduction . . . . . . .. . 46TIP 45Electronic Tips (Venmo, Zelle, CashApp) Are Fully Taxable . . . . . . . . 46TIP 46IRS Tip Monitoring Is Increasing Under OBBBA . . . . . . . 47TIP 47Service Charges Are Not Tips . . . . . . . . . . 47TIP 48States May Not Follow the Federal Deduction . . . . . . . . . . 48TIP 49Keep Separate Logs if You Work Multiple Jobs . . . . . . . . . . 48CHAPTER FOUR The Family Fortune: 20 Ways to Build a Tax-Smart Legacy for Your Inner Circle . . 51TIP 50Child Tax Credit .  . . . . . . . . 52TIP 51Child and Dependent Care (CDC) Credit . . . . .  . . 52TIP 52Earned Income Tax Credit (EITC) . . . . . . . . 52TIP 53Adoption Credit . . . .  . . . . 53TIP 54The American Opportunity Tax Credit (AOTC) . .  . . . . . 53TIP 55The Lifetime Learning Credit (LLC) . . . . . . . 53TIP 56Deduct Student Loan Interest . . . . . . . . 54TIP 57Deduct Medical Expenses for Dependents . . . . . . . 54TIP 58Deduct Charitable Driving Mileage . . . . . . . . . 55TIP 59Use That Dependent Care Account with Your Flexible Spending Account (FSA) . . . . . . . . . . 55TIP 60Beef Up Your Health Savings Account (HSA)—It’s a Triple Tax Advantage Tool . . . . . . . . . . . 55TIP 61Take Advantage of the Newborn Savings Account (One Big Beautiful Bill Act Update) . . . . .. . 56Tip 62Save for College (and Way More) with a 529 Plan . . . . . . . 56TIP 63Use 529 Funds for Student Loan Repayment . . . . . . . 56TIP 64Put Your Kids on the Payroll . . . . . . . . . 57TIP 65Fund a Roth IRA for Your Child—The Ultimate Head Start . . . . . . . . . . 57TIP 66Use the Annual Gift Tax Exclusion . . . . . . . . . . 57TIP 67Understand the “Kiddie Tax” Rule . . . . . . . . . . . . 58TIP 68File as Head of Household (HOH) if You Qualify . . . . . . . 58TIP 69Check for Qualifying Widow(er) Status . . . . . . . . . 58CHAPTER FIVE The Shelter Strategy: Maximizing Your Home as a Tax Shield Under the OBBBA . 61TIP 70Exploit the Expanded SALT Deduction (OBBBA Update) 62TIP 71Deduct Mortgage Interest . . . .. . . . . 62TIP 72Don’t Forget to Use the $1 Million Limit on Grandfathered Loans . . . . . . . . . . 62TIP 73Use HELOC Interest for Home Improvement Only . . . . . 63TIP 74Deduct Property Taxes Paid . . . . . . . . . . . 63TIP 75Deduct Private Mortgage Insurance (PMI) Premiums Again (Starting 2026) . . . . . . . . . 63TIP 76Deduct Mortgage Points on Purchase . . . . . . . . . . . . 64TIP 77Deduct Property Taxes Paid at Closing . . . . . .. . . . . . 64TIP 78Amortize Refinance Points over the Loan Life . . . . . . . . . . 64TIP 79Fully Deduct Prior Refi Points on Sale/Payoff . . . . . . . . . . 65TIP 80Add Most Closing Costs to Your Home’s Basis . . . . . . . . . . 65TIP 81Deduct Interest Paid Before Closing . . . . .  . . . 65TIP 82Deduct EV Charger Installation Costs (Alternative Fuel Refueling Property Credit) . . . . . . . 65TIP 83Maximize the Home Sale Exclusion to Minimize Your Capital Gains at Sale . . . . . . . . . 66TIP 84Claim a Partial Home Sale Exclusion . . . .  . . . . . . 67TIP 85Keep Receipts to Increase Your Home’s “Basis” . . . . . . . . . . 67TIP 86Deduct Medically Necessary Home Improvements (Itemized Deduction) . . . . . . . . . . 68TIP 87Convert a Rental to a Primary Residence (for Exclusion) . . 68CHAPTER SIX The Rental Playbook: Tax Hacks to Turn Your Property into a Wealth-Building Machine . .  71TIP 88Use the 14-Day Rental Loophole (IRC § 280A) . . . . . . . . . 72TIP 89Deduct All “Ordinary and Necessary” Expenses (IRC § 162) . . . . . .  . . . . 72TIP 90Use Schedule C for Active Airbnb Hosting (IRC § 1402) . 73TIP 91Use Schedule E for Long-Term Rentals (IRC § 469) . . . . . 73TIP 92Separate Taxes for Business Use (IRC § 164) . . . . . . . . . . . 74TIP 93Build Wealth Using Depreciation: The “Phantom Deduction” (IRC § 167) . . . .. . . . . 74TIP 94Deduct Costs of Attracting Guests (IRC § 162) . . . . . . . . . 75TIP 95Deduct Travel Expenses for Rental Business (IRC § 162) . . 75TIP 96Move Personal Home Deductions to Your Rental (IRC § 280A) . . . . . . . . 76TIP 97Account for Escrow Taxes on HUD-1 (IRC § 164) . . . . . . 77TIP 98Issue Form 1099-MISC for Service Providers (IRC § 6041) . . . . . . . . . 77TIP 99But—You Can Avoid Issuing 1099-MISC with Credit Card Payments (IRC § 6050W) . . . . . . . . 78TIP 100Deduct Interest on Time-Shares (IRC § 163) . . . . . . . . . . . 79TIP 101Depreciate Qualified Improvements (IRC § 168) . . . . . . . . 79TIP 102Deduct Interest to Private Lenders (IRC § 6050H) . . . . . . 80TIP 103Prove Your Profit Motive (IRC § 183) . . . . . . . . . . . . . . . . 80TIP 104Understand Local Hotel/Lodging Taxes (State/Local Law) . . 81TIP 105Deposit Refinance Funds into a Business Account (IRC § 163) . . . . . . . 81TIP 106Report Unpaid Interest from Loans (IRC § 446) . . . . . . . . 82TIP 107Understand Passive Activity Loss Limitations (IRC § 469) . . 82CHAPTER SEVEN The Strategic Giver: How to Donate Like a Philanthropist and Save Like a Pro . . . 85TIP 108Itemize to Deduct (Still the Gatekeeper) . . . . . . . 85TIP 109Use the “Bunching” Strategy . . . . . . 86TIP 110Verify the Charity’s Status . . . . . . . . . 86TIP 111Keep Proper Documentation . . . . . . 86TIP 112Cash Donations: The Simplest and Cleanest Charitable Deduction . . . . . . 87TIP 113Clothing and Household Goods: Condition and Valuation Matter . . . . . . . . . 88TIP 114Vehicle Donations: Special Rules, Lower Expectations . . . . 89TIP 115Deduct Only the Net Gift . . . . . . . 90TIP 116Don’t Donate “Losers” . . . . . . . . 90TIP 117Donate “Winners” (Appreciated Stock) . . . .  . . . . . . 90TIP 118Understand the AGI Deduction Limits . . . . . . 91TIP 119Carry Forward Excess Gifts . . . . . . . . 91TIP 120Use a Qualified Charitable Distribution (QCD) . . . . . . 91TIP 121The Power of Donor-Advised Funds (DAFs) . . . . . 92TIP 122Charitable Remainder Trusts (CRTs) . . . .. . . . . . 94TIP 123CRAT Vs. CRUT: Two Ways a CRT Can Pay You . . . . . . . 95CHAPTER EIGHT The Hustle Shield: Self-Employed Tax Strategies to Protect Your Profits . . . . 99TIP 124Deduct Business Meals at 50% . . . . . . . . . . 100TIP 125Separate Meal Costs from Entertainment . . . . . . . . . . 100TIP 126Deduct Meals for Transportation Workers at 80% . . . . . . 100TIP 127Deduct Business Mileage (Standard Rate) . . . . . . . . . 101TIP 128Deduct Parking and Tolls Separately . . . . . . . 102TIP 129Deduct Business Taxes Without a Cap . . . . . . . 102TIP 130Deduct All Ordinary and Necessary Expenses . . . . . . . . . 102TIP 131Deduct Business Travel Expenses . . . . . . . . . . 103TIP 132Deduct Employee Safety Costs . . . . . . . . . . . . 103TIP 133Deduct a Portion of the Self-Employment Tax . . . . . . . . . 103TIP 134Use the Optional Method for Social Security Credits . . . . 104TIP 135Claim the 20% Qualified Business Income (QBI) Deduction . . . . . . . . . . 104TIP 136Understand the MAGI Limits for the QBI Deduction . . . 105TIP 137Consider Becoming a C Corporation (C Corp) . . . . . . . . 105TIP 138Pay Yourself a Reasonable Salary (S Corporation Strategy) 106TIP 139Use the Cash Method of Accounting . . . . . . . . . 106Tip 140Maximize Section 179 Expensing . . . . . . . . . 107TIP 141Include Used Property for Bonus Depreciation . . . . . . . . 107TIP 142Consider an Office-in-Home Deduction . . . . . . . . . . . 108TIP 143Take Advantage of the De Minimis Safe Harbor (DMSH) Rule . . . . . . . . . . 108TIP 144You Can’t Have Access to an Employer Plan . . . . . . . . . . 110TIP 145Your Deduction Is Limited to Your Earned Income . . . . . 110CHAPTER NINE The Investor’s Edge: Mastering Capital Gains, Crypto, and the Stealth “NIIT” Tax . . . . 111TIP 146Try to Hold Investments Long Term . . . . . . . . . . 112TIP 147Practice Tax-Loss Harvesting . . . . . . . . . . 113Tip 148Manage Your Tax Bracket for Capital Gains . .  . . . . 114TIP 149Donate Appreciated Assets to Charity . . . . . . . . . . . 114TIP 150Follow the Wash Sale Rule (IRC §1091) . . . . . . . . . . . . . 115TIP 151Use the Crypto Wash Sale Loophole—While It Lasts . . . . 116TIP 152Defer Tax on Mining and Staking . . . . . . . . . . . . 116TIP 153Take Advantage of the De Minimis Exemption—If It Passes . . . . . . . . . 117TIP 154Try to Hold Crypto for over a Year . . . . . . . . 117CHAPTER TEN Retirement and Wealth: Mandatory Roth and Long-Term Savings . . . . . . . . . . 119TIP 155Maximize Contributions to Retirement Plans . . . . . . . . . 119TIP 156Contribute to a Roth IRA—If You Can . . . . . . . . . 121TIP 157Take Advantage of the Backdoor Roth . . . . . . . . 122TIP 158Prioritize Roth Accounts for the Young’uns . . . . . . . . 122TIP 159Avoid IRA Early Withdrawal Penalties . . . . . . . . . 123TIP 160Repay 401(k) Loans When You Leave a Job . . . . .  . . . . 123TIP 161Consider a Roth Conversion in Low-Income Years . . . . . 123TIP 162Use IRA Funds for Charitable Giving (Qualified Charitable Distributions) . . . . . . . . . . . 124TIP 163Take Advantage of Higher Estate and Gift Tax Exclusions 124TIP 164Lower Your MAGI with Smart Contributions . . . . . . . . . 126TIP 165Use Roth Accounts Strategically . . . . . . . . . . . 126TIP 166Use Tax-Loss Harvesting . . . . . . . . . . . 127TIP 167Consider Municipal Bonds . . . . . . . . . 127TIP 168Don’t Deduct Investment Fees or Tax Prep Costs . . . . . . . 129TIP 169Avoid Paying IRA Fees Out of Pocket . . . . . . . . . . 129TIP 170Same with Those Management Fees for Private Funds . . . 130TIP 171Don’t Miss Rollover Deadlines . . . . . . . . . . 130TIP 172And Finally, a Roth Conversion Reminder . . . . . . . . . . . . 130CHAPTER ELEVEN Triple Threat: Turning Your Health Savings Account into a Retirement Powerhouse .131Tip 173The Power of the Triple Tax Advantage of Health Savings Accounts . . . . . . . . . . 131CHAPTER TWELVE The Fast Lane Mastering the Road Rules for Maximum Auto Deductions . . 135TIP 174Start with Total Miles—No Fake Reverse-Odometer Tricks . . 136TIP 175Log Business Trips Like You’re Planning the Perfect Skip Day . . . . . . . 136TIP 176Standard Mileage Vs. Actual Expenses—You Get to Choose . . . . . . . . . 136TIP 177Checklist to Pick a Method . . . . . . . . 137TIP 178Luxury Car Depreciation Has Limits—Apologies to the Ferrari Owners . . . . . . . 138TIP 179Want a Big Deduction? Think SUV, Not Ferrari . . . . . . . 139TIP 180A Home Office Turns Every Trip into a Business Trip . . . 139TIP 181Rideshare Drivers Are Businesses—Even if It’s a Side Gig . . 140TIP 182Yes, Even Cash Tips Count . . . . . . 140TIP 183Advertising Wrap? You’ve Turned Your Car into a Business Asset . . . . . . . . . 141TIP 184Parking and Tolls—The Little Deductions That Add Up . 141TIP 185Charitable Mileage—Doing Good Still Gets 14 Cents per Mile . . . . . . . . . 142TIP 186Charitable Parking and Tolls—Also Deductible . . . . . . . . 142TIP 187Medical Mileage. Sometimes Necessary, Sometimes Deductible . . . . . . 143TIP 188Moving Expenses? Nope. . . . . . . . . 143TIP 189Standard Mileage Includes Depreciation—Don’t Forget This . . . . . . . . 143TIP 190Personal Property Taxes May Be Deductible—If They Qualify . . . . . . . 144TIP 191Buying Vs. Leasing? Run the Numbers . . . . . . . . . 144TIP 192Employer Reimbursements Mean No Double Dipping . . 144CHAPTER THIRTEEN Wait ... You Tried to Deduct What?: Debunking the Wildest Tax Myths in the Book 147TIP 193“My Dog Is My Security System—So He’s a Business Expense.” . . . . . . . . 148TIP 194“I Can Deduct My Wedding Because I Networked There.” . . . . . . . . . 148TIP 195“My Vacation Was a Business Trip Because I Talked About Work.” . . . . . . . . . . . 149TIP 196“I Bought Clothes for Work, So Therefore I Can Write Them Off.” . . . . . . . . . 149TIP 197“I Can Write Off My Kids Because They Help Me on TikTok.” . . . . . . . . . 149TIP 198“My Boat Is for Client Entertainment.” . . . . . . . . . . . 150TIP 199“I Can Deduct My Divorce Attorney. It’s My Future Financial Planning!” . . . . . . . 150TIP 200“I Can Write Off My House Because I Host Friends Who Talk About Business.” . . . . . . . . 151TIP 201“My Gym Membership Is a Health Deduction.” . . . . . . . 151TIP 202“I Can Write Off My Dating App Subscriptions. They’re Client Research.” . . . . . . . . 152TIP 203“My Tattoo Is Advertising. It Has My Company Logo.” . . 152TIP 204“My Pool Is a Medical Expense Because It Reduces My Stress.” . . . . . . . . . 152TIP 205“I Lost Money on Crypto, so I Don’t Need to Report It.” . . . . . . . 153TIP 206“The IRS Doesn’t Care About Side Cash.” . . . . . . . . 153TIP 207“My Vacation Rental Losses Don’t Matter Because It’s Just a Hobby.” . . . . . . . 154TIP 208“I Don’t Need Receipts. The IRS Trusts Me.” . . . . . . . . . . 154TIP 209“If I Owe Less Than $1,000, They Won’t Care.” . . . . . . . . 154TIP 210“I Don’t Have to File if I Didn’t Make Much Money.” . . . 155TIP 211“If I Get Audited, I’ll Just Say My Accountant Did It.” . . 155TIP 212“The IRS Won’t Notice. I’m Too Small.” . . . . . . . . . . . . . 156CHAPTER FOURTEEN The Great Extension: Mastering April Deadline & Uncle Sam’s Good Side ...157TIP 213File Electronically. It’s Faster, Safer, and Smarter . . . . . . . . 158TIP 214Uncle Sam Needs to Hear from You by April 15 . . . . . . . 158TIP 215Even if You Can’t Pay Your Tax Bill—File Anyway! . . . . . 159TIP 216Now, Even if You Extend, You Still Have to Pay What You Owe . . . . . . . 159TIP 217If You Owe, Make Your Payment Online . . . . . . . . . 160TIP 218Set Up an IRS Payment Plan if You Can’t Pay in Full . . . . 160TIP 219Short-Term Payment Extensions—The 180-Day Grace Period . . . . . . 161TIP 220Paying with a Credit Card: Good Idea or Bad One? . . . . . 161TIP 221Track Your Refund (or Payment) . . . . . . . . . 162TIP 222All Refunds Aren’t Instant—Even When You E-File . . . . . 162TIP 223How to Fix a Mistake: Form 1040-X . . . . . . . . 162TIP 224Don’t Forget to Amend Your State Return Too . . . . . . . . . 163TIP 225The IRS Does Forgive Penalties—Sometimes . . . . . . . . . . 163TIP 226How IRS Interest Really Works—And Why the Penalty Adds Up So Fast . . . . . . . . 163TIP 227Ignoring IRS Letters Doesn’t Make Them Go Away . . . . . 164TIP 228Create an IRS Online Account—It’s Your Digital Tax Dashboard . . . . . . . . . 164TIP 229Get an IRS Identity Protection PIN (IP PIN)—Especially if You’ve Ever Been Hacked . . . . . . 165TIP 230Know What “Injured Spouse” Means . . . . . . . . 166TIP 231Same with “Innocent Spouse” . . . . . . . 167TIP 232And My Quick Public Service Announcement . . . . . . . . 168TIP 233Keep Your Tax Records—But Not Forever . . . . . . . 169TIP 234Celebrate Responsibly—And Then Make a Note to Start Earlier Next Year . . . . . . . . 169CHAPTER FIFTEEN The Goodfellas Guide to the IRS: Surviving an Audit Without Losing Your Cool . . . . . 171TIP 235Reporting Round Numbers (aka “The $500 Rule”) . . . . . 172TIP 236Large Deductions Compared with Your Income . . . . . . . . 172TIP 237Unreported 1099 Income . . . . . . . . 172TIP 238Claiming 100% Business Use of a Vehicle . . . . . . . 173TIP 239Excessive Meal and Entertainment Deductions . . . . . . 173TIP 240Home Office Abuse . . . . . . . . . 174TIP 241Cash-Heavy Businesses . . . . . . . . . . 174TIP 242Claiming the Earned Income Tax Credit (EITC) Incorrectly . . . . . . . . 174TIP 243Amending Returns Every Year . . . . . . . . . 175TIP 244“Hobby” Businesses with Years of Losses . . . . . . . . 175TIP 245Don’t Panic—An Audit Isn’t an Indictment . . . . . . . . . . . 176TIP 246Know What Kind of Audit You’re Dealing With . . . . . . . 177TIP 247Respond Before the Deadline—Or Fuggedaboutit . . . . . . 177TIP 248Bring Receipts—Literally . . . . . . . . . . . 177TIP 249Get a Professional—Your Consigliere . . . . . . . . . . . 178TIP 250Don’t Volunteer Extra Information . . . . . . . . . . . . 179TIP 251Get Everything in Writing—No Backroom Deals . . . . . . 179TIP 252You Can Appeal. Don’t Let One Agent Be Judge and Jury . . . . . . . . 179TIP 253Fix Whatever Triggered the Audit . . . . . . . . 180TIP 254Celebrate the Win—Even if You Owe Money . . . . . . . . . 180Conclusion . . . . . . . . . . 181APPENDIX A Recordkeeping That Actually Saves You Money . . . . . . 185APPENDIX B DIY Versus Hiring a Tax Pro . . . . . . . . 189APPENDIX C I Need a Tax Pro . . . . . . . . . 193APPENDIX D Think About State Taxes Before You Move . . . . . . 197Acknowledgments . . . . . . . . . . . 203Index . . . . . . . . 205About the Author . . . . . . . 217

TRACY BYRNES (HACKENSACK, NEW JERSEY) is Vice President of Women & Investing at Lebenthal Global Advisors, and has spent decades working at the intersection of money, markets, and tax policy—and translating all three into clear language anyone can understand. A financial journalist for over thirty years, covering tax, accounting, and personal finance issues, she is a contributor to NEWSMAX, and has been an on-air reporter for the FOX Business Network, and has written weekly finance columns for the New York Post and TheStreet.com. Byrnes spent five years as a senior accountant with Ernst & Young LLP, has an MBA in accounting from Rutgers University, and is the author of Break Down Your Money: How to Get Beyond the Noise to Profit in the Markets.The author lives & works in the New York City metro area.Learn More About Tax Strategies & Financial Freedom at TracyByrnesWealth.com

• Table of Contents to DEDUCT EVERYTHING!: Hundreds of Tax Tips, Legal Write-Offs, Credits, and Loopholes by Tracy Byrnes, MBA, CDFAAuthor’s NoteIntroductionCHAPTER ONE The Great Reset: Navigating the OBBBA Tax Landscape . . . . . .. . . 1TIP 1Standard Deduction: Higher and Permanent (IRC 63(c)) . . 2TIP 2SALT Deduction: A New Cap, a New Clock (IRC 164) . . . 4TIP 3Personal Tax Rates: Still Lower, Still Favoring  High Earners (IRC 1) . . . . . . . 4TIP 4Advisor Fees Aren’t Deductible—And Charitable Deductions Now Start After a “Floor” . . . . . . . 5TIP 5Child Tax Credit: More Families Qualify, More Refundable Cash (IRC 24) . . . . . . . . 5TIP 6Estate and Gift Tax: Stability Instead of Panic (IRC 2010(c); Treasury Regulation 20.2010-1(c)) . 6TIP 7Business Owners: Cleaner Rules, Bigger QSBS Wins (IRC 199A and 1202) . . . . . . . 8TIP 8Above-the-Line Deductions (2026–2028 Only) . . . . . . . . . 10TIP 9The Mandatory Roth Catch-Up Rule: A Short-Term Hit for a Long-Term Win (IRC 219, 401) . . . .. . . . 11TIP 10IRS Digital Documentation Rules (IRC 6001, 6201) . . . . 12CHAPTER TWO From Cribs to Canes: How the OBBBA Unlocks Tax Breaks for Kids, Workers, and Retirees 13TIP 11Track Your Overtime Carefully—Only the Premium Is Deductible . . . . . . . 13TIP 12You May Deduct Up to $12,500 (Single) or $25,000 (Married Filing Jointly) . . . . . . . . 14TIP 13Your MAGI Affects Your Deduction . . . .. . . . . 14TIP 14Keep Pay Stubs and Overtime Records Until Reporting Rules Are Final . . . . 15TIP 15Remember: You Still Owe FICA Taxes on All Overtime . . . 15TIP 16Prepare to Track Only the Overtime Premium (the “Half”) . 15TIP 17Understand the Two-Year W-2 Reporting Transition . . . . . 16TIP 18Do Not Reclassify Compensation: Beware of Anti-Abuse Rules . . . . . . . .  . . 17TIP 19Train HR and Payroll Teams Early . . . . . . . . . . 17TIP 20Understand That States May Not Follow Federal Rules . . . 17TIP 21Supercharged Senior Deduction (the New $6,000 Bonus) . 18TIP 22More Social Security Benefits Stay Tax-Free (the End of a 40-Year Problem) . . . . . .  . . . 19TIP 23Permanent 7.5% Medical Expense Threshold . . . . . . . . . . . 20TIP 24The New RMD Standard . . . . . . . . . . . . . . . . . . . . . . . . . . 21TIP 25Bigger Catch-Up Contributions for Ages 60–68 . . . . . . . . 22TIP 26Expanded Saver’s Credit for Seniors Who “Un-Retire” . . . . 23TIP 27Expanded Qualified Charitable Distributions (QCDs) (IRC § 408(d)(8)) . . . . . . . 25TIP 28Credits for Caregiving and Aging-in-Place Financial Support . . . . . . . . . . . 26TIP 29Higher Deductions for Long-Term Care Insurance Premiums . . . . . . . . . . 28TIP 30Maximize Annual Contributions ($5,000 Limit) . . . . . . . . 32TIP 31Look for a Potential Employer Match (Up to $2,500) . . . . 33TIP 32Prepare for Taxable Withdrawals After Age 18 . . . . . . . . . . 33TIP 33Expect Low-Cost, Index-Based Investments Only—No Stock Picking, No Crypto . . . . . . 33TIP 34Don’t Miss the Dell Foundation’s $250 Seed Money (for Older Kids) . . . . . . . . 34CHAPTER THREE Gratitude with a Garnish: How to Keep More of Your Tips Under the OBBBA . . . . . . . 39Tip 35Keep a Daily Tip Record . . . . . . . . . . . . . . . . . . . . . . . . . . 40TIP 36Report Cash Tips to Your Employer Monthly . . . . . . . . . . 40TIP 37New: Claim the $25,000 Tip Deduction (2025–2028) . . . 41TIP 38Tips Are Still Subject to FICA (Always Have Been) . . . . . . 43TIP 39For Tip Pools, Only Report Your Net Tips . . . . . . . . . . . . . 43TIP 40Understand “Uncollected FICA” on Your W-2 . . . . . . . . . 44TIP 41Report All Tips on Your 1040 (Even Noncash) . . . . . . . . . . 44TIP 42Pay Self-Employment Tax on Unreported Tips . . . . . . . . . . 45TIP 43Verify Allocated Tips on Your W-2 . . . . .  . . . 45TIP 44Self-Employed Workers Can Claim the $25,000 Tip Deduction . . . . . . .. . 46TIP 45Electronic Tips (Venmo, Zelle, CashApp) Are Fully Taxable . . . . . . . . 46TIP 46IRS Tip Monitoring Is Increasing Under OBBBA . . . . . . . 47TIP 47Service Charges Are Not Tips . . . . . . . . . . 47TIP 48States May Not Follow the Federal Deduction . . . . . . . . . . 48TIP 49Keep Separate Logs if You Work Multiple Jobs . . . . . . . . . . 48CHAPTER FOUR The Family Fortune: 20 Ways to Build a Tax-Smart Legacy for Your Inner Circle . . 51TIP 50Child Tax Credit .  . . . . . . . . 52TIP 51Child and Dependent Care (CDC) Credit . . . . .  . . 52TIP 52Earned Income Tax Credit (EITC) . . . . . . . . 52TIP 53Adoption Credit . . . .  . . . . 53TIP 54The American Opportunity Tax Credit (AOTC) . .  . . . . . 53TIP 55The Lifetime Learning Credit (LLC) . . . . . . . 53TIP 56Deduct Student Loan Interest . . . . . . . . 54TIP 57Deduct Medical Expenses for Dependents . . . . . . . 54TIP 58Deduct Charitable Driving Mileage . . . . . . . . . 55TIP 59Use That Dependent Care Account with Your Flexible Spending Account (FSA) . . . . . . . . . . 55TIP 60Beef Up Your Health Savings Account (HSA)—It’s a Triple Tax Advantage Tool . . . . . . . . . . . 55TIP 61Take Advantage of the Newborn Savings Account (One Big Beautiful Bill Act Update) . . . . .. . 56Tip 62Save for College (and Way More) with a 529 Plan . . . . . . . 56TIP 63Use 529 Funds for Student Loan Repayment . . . . . . . 56TIP 64Put Your Kids on the Payroll . . . . . . . . . 57TIP 65Fund a Roth IRA for Your Child—The Ultimate Head Start . . . . . . . . . . 57TIP 66Use the Annual Gift Tax Exclusion . . . . . . . . . . 57TIP 67Understand the “Kiddie Tax” Rule . . . . . . . . . . . . 58TIP 68File as Head of Household (HOH) if You Qualify . . . . . . . 58TIP 69Check for Qualifying Widow(er) Status . . . . . . . . . 58CHAPTER FIVE The Shelter Strategy: Maximizing Your Home as a Tax Shield Under the OBBBA . 61TIP 70Exploit the Expanded SALT Deduction (OBBBA Update) 62TIP 71Deduct Mortgage Interest . . . .. . . . . 62TIP 72Don’t Forget to Use the $1 Million Limit on Grandfathered Loans . . . . . . . . . . 62TIP 73Use HELOC Interest for Home Improvement Only . . . . . 63TIP 74Deduct Property Taxes Paid . . . . . . . . . . . 63TIP 75Deduct Private Mortgage Insurance (PMI) Premiums Again (Starting 2026) . . . . . . . . . 63TIP 76Deduct Mortgage Points on Purchase . . . . . . . . . . . . 64TIP 77Deduct Property Taxes Paid at Closing . . . . . .. . . . . . 64TIP 78Amortize Refinance Points over the Loan Life . . . . . . . . . . 64TIP 79Fully Deduct Prior Refi Points on Sale/Payoff . . . . . . . . . . 65TIP 80Add Most Closing Costs to Your Home’s Basis . . . . . . . . . . 65TIP 81Deduct Interest Paid Before Closing . . . . .  . . . 65TIP 82Deduct EV Charger Installation Costs (Alternative Fuel Refueling Property Credit) . . . . . . . 65TIP 83Maximize the Home Sale Exclusion to Minimize Your Capital Gains at Sale . . . . . . . . . 66TIP 84Claim a Partial Home Sale Exclusion . . . .  . . . . . . 67TIP 85Keep Receipts to Increase Your Home’s “Basis” . . . . . . . . . . 67TIP 86Deduct Medically Necessary Home Improvements (Itemized Deduction) . . . . . . . . . . 68TIP 87Convert a Rental to a Primary Residence (for Exclusion) . . 68CHAPTER SIX The Rental Playbook: Tax Hacks to Turn Your Property into a Wealth-Building Machine . .  71TIP 88Use the 14-Day Rental Loophole (IRC § 280A) . . . . . . . . . 72TIP 89Deduct All “Ordinary and Necessary” Expenses (IRC § 162) . . . . . .  . . . . 72TIP 90Use Schedule C for Active Airbnb Hosting (IRC § 1402) . 73TIP 91Use Schedule E for Long-Term Rentals (IRC § 469) . . . . . 73TIP 92Separate Taxes for Business Use (IRC § 164) . . . . . . . . . . . 74TIP 93Build Wealth Using Depreciation: The “Phantom Deduction” (IRC § 167) . . . .. . . . . 74TIP 94Deduct Costs of Attracting Guests (IRC § 162) . . . . . . . . . 75TIP 95Deduct Travel Expenses for Rental Business (IRC § 162) . . 75TIP 96Move Personal Home Deductions to Your Rental (IRC § 280A) . . . . . . . . 76TIP 97Account for Escrow Taxes on HUD-1 (IRC § 164) . . . . . . 77TIP 98Issue Form 1099-MISC for Service Providers (IRC § 6041) . . . . . . . . . 77TIP 99But—You Can Avoid Issuing 1099-MISC with Credit Card Payments (IRC § 6050W) . . . . . . . . 78TIP 100Deduct Interest on Time-Shares (IRC § 163) . . . . . . . . . . . 79TIP 101Depreciate Qualified Improvements (IRC § 168) . . . . . . . . 79TIP 102Deduct Interest to Private Lenders (IRC § 6050H) . . . . . . 80TIP 103Prove Your Profit Motive (IRC § 183) . . . . . . . . . . . . . . . . 80TIP 104Understand Local Hotel/Lodging Taxes (State/Local Law) . . 81TIP 105Deposit Refinance Funds into a Business Account (IRC § 163) . . . . . . . 81TIP 106Report Unpaid Interest from Loans (IRC § 446) . . . . . . . . 82TIP 107Understand Passive Activity Loss Limitations (IRC § 469) . . 82CHAPTER SEVEN The Strategic Giver: How to Donate Like a Philanthropist and Save Like a Pro . . . 85TIP 108Itemize to Deduct (Still the Gatekeeper) . . . . . . . 85TIP 109Use the “Bunching” Strategy . . . . . . 86TIP 110Verify the Charity’s Status . . . . . . . . . 86TIP 111Keep Proper Documentation . . . . . . 86TIP 112Cash Donations: The Simplest and Cleanest Charitable Deduction . . . . . . 87TIP 113Clothing and Household Goods: Condition and Valuation Matter . . . . . . . . . 88TIP 114Vehicle Donations: Special Rules, Lower Expectations . . . . 89TIP 115Deduct Only the Net Gift . . . . . . . 90TIP 116Don’t Donate “Losers” . . . . . . . . 90TIP 117Donate “Winners” (Appreciated Stock) . . . .  . . . . . . 90TIP 118Understand the AGI Deduction Limits . . . . . . 91TIP 119Carry Forward Excess Gifts . . . . . . . . 91TIP 120Use a Qualified Charitable Distribution (QCD) . . . . . . 91TIP 121The Power of Donor-Advised Funds (DAFs) . . . . . 92TIP 122Charitable Remainder Trusts (CRTs) . . . .. . . . . . 94TIP 123CRAT Vs. CRUT: Two Ways a CRT Can Pay You . . . . . . . 95CHAPTER EIGHT The Hustle Shield: Self-Employed Tax Strategies to Protect Your Profits . . . . 99TIP 124Deduct Business Meals at 50% . . . . . . . . . . 100TIP 125Separate Meal Costs from Entertainment . . . . . . . . . . 100TIP 126Deduct Meals for Transportation Workers at 80% . . . . . . 100TIP 127Deduct Business Mileage (Standard Rate) . . . . . . . . . 101TIP 128Deduct Parking and Tolls Separately . . . . . . . 102TIP 129Deduct Business Taxes Without a Cap . . . . . . . 102TIP 130Deduct All Ordinary and Necessary Expenses . . . . . . . . . 102TIP 131Deduct Business Travel Expenses . . . . . . . . . . 103TIP 132Deduct Employee Safety Costs . . . . . . . . . . . . 103TIP 133Deduct a Portion of the Self-Employment Tax . . . . . . . . . 103TIP 134Use the Optional Method for Social Security Credits . . . . 104TIP 135Claim the 20% Qualified Business Income (QBI) Deduction . . . . . . . . . . 104TIP 136Understand the MAGI Limits for the QBI Deduction . . . 105TIP 137Consider Becoming a C Corporation (C Corp) . . . . . . . . 105TIP 138Pay Yourself a Reasonable Salary (S Corporation Strategy) 106TIP 139Use the Cash Method of Accounting . . . . . . . . . 106Tip 140Maximize Section 179 Expensing . . . . . . . . . 107TIP 141Include Used Property for Bonus Depreciation . . . . . . . . 107TIP 142Consider an Office-in-Home Deduction . . . . . . . . . . . 108TIP 143Take Advantage of the De Minimis Safe Harbor (DMSH) Rule . . . . . . . . . . 108TIP 144You Can’t Have Access to an Employer Plan . . . . . . . . . . 110TIP 145Your Deduction Is Limited to Your Earned Income . . . . . 110CHAPTER NINE The Investor’s Edge: Mastering Capital Gains, Crypto, and the Stealth “NIIT” Tax . . . . 111TIP 146Try to Hold Investments Long Term . . . . . . . . . . 112TIP 147Practice Tax-Loss Harvesting . . . . . . . . . . 113Tip 148Manage Your Tax Bracket for Capital Gains . .  . . . . 114TIP 149Donate Appreciated Assets to Charity . . . . . . . . . . . 114TIP 150Follow the Wash Sale Rule (IRC §1091) . . . . . . . . . . . . . 115TIP 151Use the Crypto Wash Sale Loophole—While It Lasts . . . . 116TIP 152Defer Tax on Mining and Staking . . . . . . . . . . . . 116TIP 153Take Advantage of the De Minimis Exemption—If It Passes . . . . . . . . . 117TIP 154Try to Hold Crypto for over a Year . . . . . . . . 117CHAPTER TEN Retirement and Wealth: Mandatory Roth and Long-Term Savings . . . . . . . . . . 119TIP 155Maximize Contributions to Retirement Plans . . . . . . . . . 119TIP 156Contribute to a Roth IRA—If You Can . . . . . . . . . 121TIP 157Take Advantage of the Backdoor Roth . . . . . . . . 122TIP 158Prioritize Roth Accounts for the Young’uns . . . . . . . . 122TIP 159Avoid IRA Early Withdrawal Penalties . . . . . . . . . 123TIP 160Repay 401(k) Loans When You Leave a Job . . . . .  . . . . 123TIP 161Consider a Roth Conversion in Low-Income Years . . . . . 123TIP 162Use IRA Funds for Charitable Giving (Qualified Charitable Distributions) . . . . . . . . . . . 124TIP 163Take Advantage of Higher Estate and Gift Tax Exclusions 124TIP 164Lower Your MAGI with Smart Contributions . . . . . . . . . 126TIP 165Use Roth Accounts Strategically . . . . . . . . . . . 126TIP 166Use Tax-Loss Harvesting . . . . . . . . . . . 127TIP 167Consider Municipal Bonds . . . . . . . . . 127TIP 168Don’t Deduct Investment Fees or Tax Prep Costs . . . . . . . 129TIP 169Avoid Paying IRA Fees Out of Pocket . . . . . . . . . . 129TIP 170Same with Those Management Fees for Private Funds . . . 130TIP 171Don’t Miss Rollover Deadlines . . . . . . . . . . 130TIP 172And Finally, a Roth Conversion Reminder . . . . . . . . . . . . 130CHAPTER ELEVEN Triple Threat: Turning Your Health Savings Account into a Retirement Powerhouse .131Tip 173The Power of the Triple Tax Advantage of Health Savings Accounts . . . . . . . . . . 131CHAPTER TWELVE The Fast Lane Mastering the Road Rules for Maximum Auto Deductions . . 135TIP 174Start with Total Miles—No Fake Reverse-Odometer Tricks . . 136TIP 175Log Business Trips Like You’re Planning the Perfect Skip Day . . . . . . . 136TIP 176Standard Mileage Vs. Actual Expenses—You Get to Choose . . . . . . . . . 136TIP 177Checklist to Pick a Method . . . . . . . . 137TIP 178Luxury Car Depreciation Has Limits—Apologies to the Ferrari Owners . . . . . . . 138TIP 179Want a Big Deduction? Think SUV, Not Ferrari . . . . . . . 139TIP 180A Home Office Turns Every Trip into a Business Trip . . . 139TIP 181Rideshare Drivers Are Businesses—Even if It’s a Side Gig . . 140TIP 182Yes, Even Cash Tips Count . . . . . . 140TIP 183Advertising Wrap? You’ve Turned Your Car into a Business Asset . . . . . . . . . 141TIP 184Parking and Tolls—The Little Deductions That Add Up . 141TIP 185Charitable Mileage—Doing Good Still Gets 14 Cents per Mile . . . . . . . . . 142TIP 186Charitable Parking and Tolls—Also Deductible . . . . . . . . 142TIP 187Medical Mileage. Sometimes Necessary, Sometimes Deductible . . . . . . 143TIP 188Moving Expenses? Nope. . . . . . . . . 143TIP 189Standard Mileage Includes Depreciation—Don’t Forget This . . . . . . . . 143TIP 190Personal Property Taxes May Be Deductible—If They Qualify . . . . . . . 144TIP 191Buying Vs. Leasing? Run the Numbers . . . . . . . . . 144TIP 192Employer Reimbursements Mean No Double Dipping . . 144CHAPTER THIRTEEN Wait ... You Tried to Deduct What?: Debunking the Wildest Tax Myths in the Book 147TIP 193“My Dog Is My Security System—So He’s a Business Expense.” . . . . . . . . 148TIP 194“I Can Deduct My Wedding Because I Networked There.” . . . . . . . . . 148TIP 195“My Vacation Was a Business Trip Because I Talked About Work.” . . . . . . . . . . . 149TIP 196“I Bought Clothes for Work, So Therefore I Can Write Them Off.” . . . . . . . . . 149TIP 197“I Can Write Off My Kids Because They Help Me on TikTok.” . . . . . . . . . 149TIP 198“My Boat Is for Client Entertainment.” . . . . . . . . . . . 150TIP 199“I Can Deduct My Divorce Attorney. It’s My Future Financial Planning!” . . . . . . . 150TIP 200“I Can Write Off My House Because I Host Friends Who Talk About Business.” . . . . . . . . 151TIP 201“My Gym Membership Is a Health Deduction.” . . . . . . . 151TIP 202“I Can Write Off My Dating App Subscriptions. They’re Client Research.” . . . . . . . . 152TIP 203“My Tattoo Is Advertising. It Has My Company Logo.” . . 152TIP 204“My Pool Is a Medical Expense Because It Reduces My Stress.” . . . . . . . . . 152TIP 205“I Lost Money on Crypto, so I Don’t Need to Report It.” . . . . . . . 153TIP 206“The IRS Doesn’t Care About Side Cash.” . . . . . . . . 153TIP 207“My Vacation Rental Losses Don’t Matter Because It’s Just a Hobby.” . . . . . . . 154TIP 208“I Don’t Need Receipts. The IRS Trusts Me.” . . . . . . . . . . 154TIP 209“If I Owe Less Than $1,000, They Won’t Care.” . . . . . . . . 154TIP 210“I Don’t Have to File if I Didn’t Make Much Money.” . . . 155TIP 211“If I Get Audited, I’ll Just Say My Accountant Did It.” . . 155TIP 212“The IRS Won’t Notice. I’m Too Small.” . . . . . . . . . . . . . 156CHAPTER FOURTEEN The Great Extension: Mastering April Deadline & Uncle Sam’s Good Side ...157TIP 213File Electronically. It’s Faster, Safer, and Smarter . . . . . . . . 158TIP 214Uncle Sam Needs to Hear from You by April 15 . . . . . . . 158TIP 215Even if You Can’t Pay Your Tax Bill—File Anyway! . . . . . 159TIP 216Now, Even if You Extend, You Still Have to Pay What You Owe . . . . . . . 159TIP 217If You Owe, Make Your Payment Online . . . . . . . . . 160TIP 218Set Up an IRS Payment Plan if You Can’t Pay in Full . . . . 160TIP 219Short-Term Payment Extensions—The 180-Day Grace Period . . . . . . 161TIP 220Paying with a Credit Card: Good Idea or Bad One? . . . . . 161TIP 221Track Your Refund (or Payment) . . . . . . . . . 162TIP 222All Refunds Aren’t Instant—Even When You E-File . . . . . 162TIP 223How to Fix a Mistake: Form 1040-X . . . . . . . . 162TIP 224Don’t Forget to Amend Your State Return Too . . . . . . . . . 163TIP 225The IRS Does Forgive Penalties—Sometimes . . . . . . . . . . 163TIP 226How IRS Interest Really Works—And Why the Penalty Adds Up So Fast . . . . . . . . 163TIP 227Ignoring IRS Letters Doesn’t Make Them Go Away . . . . . 164TIP 228Create an IRS Online Account—It’s Your Digital Tax Dashboard . . . . . . . . . 164TIP 229Get an IRS Identity Protection PIN (IP PIN)—Especially if You’ve Ever Been Hacked . . . . . . 165TIP 230Know What “Injured Spouse” Means . . . . . . . . 166TIP 231Same with “Innocent Spouse” . . . . . . . 167TIP 232And My Quick Public Service Announcement . . . . . . . . 168TIP 233Keep Your Tax Records—But Not Forever . . . . . . . 169TIP 234Celebrate Responsibly—And Then Make a Note to Start Earlier Next Year . . . . . . . . 169CHAPTER FIFTEEN The Goodfellas Guide to the IRS: Surviving an Audit Without Losing Your Cool . . . . . 171TIP 235Reporting Round Numbers (aka “The $500 Rule”) . . . . . 172TIP 236Large Deductions Compared with Your Income . . . . . . . . 172TIP 237Unreported 1099 Income . . . . . . . . 172TIP 238Claiming 100% Business Use of a Vehicle . . . . . . . 173TIP 239Excessive Meal and Entertainment Deductions . . . . . . 173TIP 240Home Office Abuse . . . . . . . . . 174TIP 241Cash-Heavy Businesses . . . . . . . . . . 174TIP 242Claiming the Earned Income Tax Credit (EITC) Incorrectly . . . . . . . . 174TIP 243Amending Returns Every Year . . . . . . . . . 175TIP 244“Hobby” Businesses with Years of Losses . . . . . . . . 175TIP 245Don’t Panic—An Audit Isn’t an Indictment . . . . . . . . . . . 176TIP 246Know What Kind of Audit You’re Dealing With . . . . . . . 177TIP 247Respond Before the Deadline—Or Fuggedaboutit . . . . . . 177TIP 248Bring Receipts—Literally . . . . . . . . . . . 177TIP 249Get a Professional—Your Consigliere . . . . . . . . . . . 178TIP 250Don’t Volunteer Extra Information . . . . . . . . . . . . 179TIP 251Get Everything in Writing—No Backroom Deals . . . . . . 179TIP 252You Can Appeal. Don’t Let One Agent Be Judge and Jury . . . . . . . . 179TIP 253Fix Whatever Triggered the Audit . . . . . . . . 180TIP 254Celebrate the Win—Even if You Owe Money . . . . . . . . . 180Conclusion . . . . . . . . . . 181APPENDIX A Recordkeeping That Actually Saves You Money . . . . . . 185APPENDIX B DIY Versus Hiring a Tax Pro . . . . . . . . 189APPENDIX C I Need a Tax Pro . . . . . . . . . 193APPENDIX D Think About State Taxes Before You Move . . . . . . 197Acknowledgments . . . . . . . . . . . 203Index . . . . . . . . 205About the Author . . . . . . . 217

TRACY BYRNES (HACKENSACK, NEW JERSEY) is Vice President of Women & Investing at Lebenthal Global Advisors, and has spent decades working at the intersection of money, markets, and tax policy—and translating all three into clear language anyone can understand. A financial journalist for over thirty years, covering tax, accounting, and personal finance issues, she is a contributor to NEWSMAX, and has been an on-air reporter for the FOX Business Network, and has written weekly finance columns for the New York Post and TheStreet.com. Byrnes spent five years as a senior accountant with Ernst & Young LLP, has an MBA in accounting from Rutgers University, and is the author of Break Down Your Money: How to Get Beyond the Noise to Profit in the Markets.The author lives & works in the New York City metro area.Learn More About Tax Strategies & Financial Freedom at TracyByrnesWealth.com

• Table of Contents to DEDUCT EVERYTHING!: Hundreds of Tax Tips, Legal Write-Offs, Credits, and Loopholes by Tracy Byrnes, MBA, CDFAAuthor’s NoteIntroductionCHAPTER ONE The Great Reset: Navigating the OBBBA Tax Landscape . . . . . .. . . 1TIP 1Standard Deduction: Higher and Permanent (IRC 63(c)) . . 2TIP 2SALT Deduction: A New Cap, a New Clock (IRC 164) . . . 4TIP 3Personal Tax Rates: Still Lower, Still Favoring  High Earners (IRC 1) . . . . . . . 4TIP 4Advisor Fees Aren’t Deductible—And Charitable Deductions Now Start After a “Floor” . . . . . . . 5TIP 5Child Tax Credit: More Families Qualify, More Refundable Cash (IRC 24) . . . . . . . . 5TIP 6Estate and Gift Tax: Stability Instead of Panic (IRC 2010(c); Treasury Regulation 20.2010-1(c)) . 6TIP 7Business Owners: Cleaner Rules, Bigger QSBS Wins (IRC 199A and 1202) . . . . . . . 8TIP 8Above-the-Line Deductions (2026–2028 Only) . . . . . . . . . 10TIP 9The Mandatory Roth Catch-Up Rule: A Short-Term Hit for a Long-Term Win (IRC 219, 401) . . . .. . . . 11TIP 10IRS Digital Documentation Rules (IRC 6001, 6201) . . . . 12CHAPTER TWO From Cribs to Canes: How the OBBBA Unlocks Tax Breaks for Kids, Workers, and Retirees 13TIP 11Track Your Overtime Carefully—Only the Premium Is Deductible . . . . . . . 13TIP 12You May Deduct Up to $12,500 (Single) or $25,000 (Married Filing Jointly) . . . . . . . . 14TIP 13Your MAGI Affects Your Deduction . . . .. . . . . 14TIP 14Keep Pay Stubs and Overtime Records Until Reporting Rules Are Final . . . . 15TIP 15Remember: You Still Owe FICA Taxes on All Overtime . . . 15TIP 16Prepare to Track Only the Overtime Premium (the “Half”) . 15TIP 17Understand the Two-Year W-2 Reporting Transition . . . . . 16TIP 18Do Not Reclassify Compensation: Beware of Anti-Abuse Rules . . . . . . . .  . . 17TIP 19Train HR and Payroll Teams Early . . . . . . . . . . 17TIP 20Understand That States May Not Follow Federal Rules . . . 17TIP 21Supercharged Senior Deduction (the New $6,000 Bonus) . 18TIP 22More Social Security Benefits Stay Tax-Free (the End of a 40-Year Problem) . . . . . .  . . . 19TIP 23Permanent 7.5% Medical Expense Threshold . . . . . . . . . . . 20TIP 24The New RMD Standard . . . . . . . . . . . . . . . . . . . . . . . . . . 21TIP 25Bigger Catch-Up Contributions for Ages 60–68 . . . . . . . . 22TIP 26Expanded Saver’s Credit for Seniors Who “Un-Retire” . . . . 23TIP 27Expanded Qualified Charitable Distributions (QCDs) (IRC § 408(d)(8)) . . . . . . . 25TIP 28Credits for Caregiving and Aging-in-Place Financial Support . . . . . . . . . . . 26TIP 29Higher Deductions for Long-Term Care Insurance Premiums . . . . . . . . . . 28TIP 30Maximize Annual Contributions ($5,000 Limit) . . . . . . . . 32TIP 31Look for a Potential Employer Match (Up to $2,500) . . . . 33TIP 32Prepare for Taxable Withdrawals After Age 18 . . . . . . . . . . 33TIP 33Expect Low-Cost, Index-Based Investments Only—No Stock Picking, No Crypto . . . . . . 33TIP 34Don’t Miss the Dell Foundation’s $250 Seed Money (for Older Kids) . . . . . . . . 34CHAPTER THREE Gratitude with a Garnish: How to Keep More of Your Tips Under the OBBBA . . . . . . . 39Tip 35Keep a Daily Tip Record . . . . . . . . . . . . . . . . . . . . . . . . . . 40TIP 36Report Cash Tips to Your Employer Monthly . . . . . . . . . . 40TIP 37New: Claim the $25,000 Tip Deduction (2025–2028) . . . 41TIP 38Tips Are Still Subject to FICA (Always Have Been) . . . . . . 43TIP 39For Tip Pools, Only Report Your Net Tips . . . . . . . . . . . . . 43TIP 40Understand “Uncollected FICA” on Your W-2 . . . . . . . . . 44TIP 41Report All Tips on Your 1040 (Even Noncash) . . . . . . . . . . 44TIP 42Pay Self-Employment Tax on Unreported Tips . . . . . . . . . . 45TIP 43Verify Allocated Tips on Your W-2 . . . . .  . . . 45TIP 44Self-Employed Workers Can Claim the $25,000 Tip Deduction . . . . . . .. . 46TIP 45Electronic Tips (Venmo, Zelle, CashApp) Are Fully Taxable . . . . . . . . 46TIP 46IRS Tip Monitoring Is Increasing Under OBBBA . . . . . . . 47TIP 47Service Charges Are Not Tips . . . . . . . . . . 47TIP 48States May Not Follow the Federal Deduction . . . . . . . . . . 48TIP 49Keep Separate Logs if You Work Multiple Jobs . . . . . . . . . . 48CHAPTER FOUR The Family Fortune: 20 Ways to Build a Tax-Smart Legacy for Your Inner Circle . . 51TIP 50Child Tax Credit .  . . . . . . . . 52TIP 51Child and Dependent Care (CDC) Credit . . . . .  . . 52TIP 52Earned Income Tax Credit (EITC) . . . . . . . . 52TIP 53Adoption Credit . . . .  . . . . 53TIP 54The American Opportunity Tax Credit (AOTC) . .  . . . . . 53TIP 55The Lifetime Learning Credit (LLC) . . . . . . . 53TIP 56Deduct Student Loan Interest . . . . . . . . 54TIP 57Deduct Medical Expenses for Dependents . . . . . . . 54TIP 58Deduct Charitable Driving Mileage . . . . . . . . . 55TIP 59Use That Dependent Care Account with Your Flexible Spending Account (FSA) . . . . . . . . . . 55TIP 60Beef Up Your Health Savings Account (HSA)—It’s a Triple Tax Advantage Tool . . . . . . . . . . . 55TIP 61Take Advantage of the Newborn Savings Account (One Big Beautiful Bill Act Update) . . . . .. . 56Tip 62Save for College (and Way More) with a 529 Plan . . . . . . . 56TIP 63Use 529 Funds for Student Loan Repayment . . . . . . . 56TIP 64Put Your Kids on the Payroll . . . . . . . . . 57TIP 65Fund a Roth IRA for Your Child—The Ultimate Head Start . . . . . . . . . . 57TIP 66Use the Annual Gift Tax Exclusion . . . . . . . . . . 57TIP 67Understand the “Kiddie Tax” Rule . . . . . . . . . . . . 58TIP 68File as Head of Household (HOH) if You Qualify . . . . . . . 58TIP 69Check for Qualifying Widow(er) Status . . . . . . . . . 58CHAPTER FIVE The Shelter Strategy: Maximizing Your Home as a Tax Shield Under the OBBBA . 61TIP 70Exploit the Expanded SALT Deduction (OBBBA Update) 62TIP 71Deduct Mortgage Interest . . . .. . . . . 62TIP 72Don’t Forget to Use the $1 Million Limit on Grandfathered Loans . . . . . . . . . . 62TIP 73Use HELOC Interest for Home Improvement Only . . . . . 63TIP 74Deduct Property Taxes Paid . . . . . . . . . . . 63TIP 75Deduct Private Mortgage Insurance (PMI) Premiums Again (Starting 2026) . . . . . . . . . 63TIP 76Deduct Mortgage Points on Purchase . . . . . . . . . . . . 64TIP 77Deduct Property Taxes Paid at Closing . . . . . .. . . . . . 64TIP 78Amortize Refinance Points over the Loan Life . . . . . . . . . . 64TIP 79Fully Deduct Prior Refi Points on Sale/Payoff . . . . . . . . . . 65TIP 80Add Most Closing Costs to Your Home’s Basis . . . . . . . . . . 65TIP 81Deduct Interest Paid Before Closing . . . . .  . . . 65TIP 82Deduct EV Charger Installation Costs (Alternative Fuel Refueling Property Credit) . . . . . . . 65TIP 83Maximize the Home Sale Exclusion to Minimize Your Capital Gains at Sale . . . . . . . . . 66TIP 84Claim a Partial Home Sale Exclusion . . . .  . . . . . . 67TIP 85Keep Receipts to Increase Your Home’s “Basis” . . . . . . . . . . 67TIP 86Deduct Medically Necessary Home Improvements (Itemized Deduction) . . . . . . . . . . 68TIP 87Convert a Rental to a Primary Residence (for Exclusion) . . 68CHAPTER SIX The Rental Playbook: Tax Hacks to Turn Your Property into a Wealth-Building Machine . .  71TIP 88Use the 14-Day Rental Loophole (IRC § 280A) . . . . . . . . . 72TIP 89Deduct All “Ordinary and Necessary” Expenses (IRC § 162) . . . . . .  . . . . 72TIP 90Use Schedule C for Active Airbnb Hosting (IRC § 1402) . 73TIP 91Use Schedule E for Long-Term Rentals (IRC § 469) . . . . . 73TIP 92Separate Taxes for Business Use (IRC § 164) . . . . . . . . . . . 74TIP 93Build Wealth Using Depreciation: The “Phantom Deduction” (IRC § 167) . . . .. . . . . 74TIP 94Deduct Costs of Attracting Guests (IRC § 162) . . . . . . . . . 75TIP 95Deduct Travel Expenses for Rental Business (IRC § 162) . . 75TIP 96Move Personal Home Deductions to Your Rental (IRC § 280A) . . . . . . . . 76TIP 97Account for Escrow Taxes on HUD-1 (IRC § 164) . . . . . . 77TIP 98Issue Form 1099-MISC for Service Providers (IRC § 6041) . . . . . . . . . 77TIP 99But—You Can Avoid Issuing 1099-MISC with Credit Card Payments (IRC § 6050W) . . . . . . . . 78TIP 100Deduct Interest on Time-Shares (IRC § 163) . . . . . . . . . . . 79TIP 101Depreciate Qualified Improvements (IRC § 168) . . . . . . . . 79TIP 102Deduct Interest to Private Lenders (IRC § 6050H) . . . . . . 80TIP 103Prove Your Profit Motive (IRC § 183) . . . . . . . . . . . . . . . . 80TIP 104Understand Local Hotel/Lodging Taxes (State/Local Law) . . 81TIP 105Deposit Refinance Funds into a Business Account (IRC § 163) . . . . . . . 81TIP 106Report Unpaid Interest from Loans (IRC § 446) . . . . . . . . 82TIP 107Understand Passive Activity Loss Limitations (IRC § 469) . . 82CHAPTER SEVEN The Strategic Giver: How to Donate Like a Philanthropist and Save Like a Pro . . . 85TIP 108Itemize to Deduct (Still the Gatekeeper) . . . . . . . 85TIP 109Use the “Bunching” Strategy . . . . . . 86TIP 110Verify the Charity’s Status . . . . . . . . . 86TIP 111Keep Proper Documentation . . . . . . 86TIP 112Cash Donations: The Simplest and Cleanest Charitable Deduction . . . . . . 87TIP 113Clothing and Household Goods: Condition and Valuation Matter . . . . . . . . . 88TIP 114Vehicle Donations: Special Rules, Lower Expectations . . . . 89TIP 115Deduct Only the Net Gift . . . . . . . 90TIP 116Don’t Donate “Losers” . . . . . . . . 90TIP 117Donate “Winners” (Appreciated Stock) . . . .  . . . . . . 90TIP 118Understand the AGI Deduction Limits . . . . . . 91TIP 119Carry Forward Excess Gifts . . . . . . . . 91TIP 120Use a Qualified Charitable Distribution (QCD) . . . . . . 91TIP 121The Power of Donor-Advised Funds (DAFs) . . . . . 92TIP 122Charitable Remainder Trusts (CRTs) . . . .. . . . . . 94TIP 123CRAT Vs. CRUT: Two Ways a CRT Can Pay You . . . . . . . 95CHAPTER EIGHT The Hustle Shield: Self-Employed Tax Strategies to Protect Your Profits . . . . 99TIP 124Deduct Business Meals at 50% . . . . . . . . . . 100TIP 125Separate Meal Costs from Entertainment . . . . . . . . . . 100TIP 126Deduct Meals for Transportation Workers at 80% . . . . . . 100TIP 127Deduct Business Mileage (Standard Rate) . . . . . . . . . 101TIP 128Deduct Parking and Tolls Separately . . . . . . . 102TIP 129Deduct Business Taxes Without a Cap . . . . . . . 102TIP 130Deduct All Ordinary and Necessary Expenses . . . . . . . . . 102TIP 131Deduct Business Travel Expenses . . . . . . . . . . 103TIP 132Deduct Employee Safety Costs . . . . . . . . . . . . 103TIP 133Deduct a Portion of the Self-Employment Tax . . . . . . . . . 103TIP 134Use the Optional Method for Social Security Credits . . . . 104TIP 135Claim the 20% Qualified Business Income (QBI) Deduction . . . . . . . . . . 104TIP 136Understand the MAGI Limits for the QBI Deduction . . . 105TIP 137Consider Becoming a C Corporation (C Corp) . . . . . . . . 105TIP 138Pay Yourself a Reasonable Salary (S Corporation Strategy) 106TIP 139Use the Cash Method of Accounting . . . . . . . . . 106Tip 140Maximize Section 179 Expensing . . . . . . . . . 107TIP 141Include Used Property for Bonus Depreciation . . . . . . . . 107TIP 142Consider an Office-in-Home Deduction . . . . . . . . . . . 108TIP 143Take Advantage of the De Minimis Safe Harbor (DMSH) Rule . . . . . . . . . . 108TIP 144You Can’t Have Access to an Employer Plan . . . . . . . . . . 110TIP 145Your Deduction Is Limited to Your Earned Income . . . . . 110CHAPTER NINE The Investor’s Edge: Mastering Capital Gains, Crypto, and the Stealth “NIIT” Tax . . . . 111TIP 146Try to Hold Investments Long Term . . . . . . . . . . 112TIP 147Practice Tax-Loss Harvesting . . . . . . . . . . 113Tip 148Manage Your Tax Bracket for Capital Gains . .  . . . . 114TIP 149Donate Appreciated Assets to Charity . . . . . . . . . . . 114TIP 150Follow the Wash Sale Rule (IRC §1091) . . . . . . . . . . . . . 115TIP 151Use the Crypto Wash Sale Loophole—While It Lasts . . . . 116TIP 152Defer Tax on Mining and Staking . . . . . . . . . . . . 116TIP 153Take Advantage of the De Minimis Exemption—If It Passes . . . . . . . . . 117TIP 154Try to Hold Crypto for over a Year . . . . . . . . 117CHAPTER TEN Retirement and Wealth: Mandatory Roth and Long-Term Savings . . . . . . . . . . 119TIP 155Maximize Contributions to Retirement Plans . . . . . . . . . 119TIP 156Contribute to a Roth IRA—If You Can . . . . . . . . . 121TIP 157Take Advantage of the Backdoor Roth . . . . . . . . 122TIP 158Prioritize Roth Accounts for the Young’uns . . . . . . . . 122TIP 159Avoid IRA Early Withdrawal Penalties . . . . . . . . . 123TIP 160Repay 401(k) Loans When You Leave a Job . . . . .  . . . . 123TIP 161Consider a Roth Conversion in Low-Income Years . . . . . 123TIP 162Use IRA Funds for Charitable Giving (Qualified Charitable Distributions) . . . . . . . . . . . 124TIP 163Take Advantage of Higher Estate and Gift Tax Exclusions 124TIP 164Lower Your MAGI with Smart Contributions . . . . . . . . . 126TIP 165Use Roth Accounts Strategically . . . . . . . . . . . 126TIP 166Use Tax-Loss Harvesting . . . . . . . . . . . 127TIP 167Consider Municipal Bonds . . . . . . . . . 127TIP 168Don’t Deduct Investment Fees or Tax Prep Costs . . . . . . . 129TIP 169Avoid Paying IRA Fees Out of Pocket . . . . . . . . . . 129TIP 170Same with Those Management Fees for Private Funds . . . 130TIP 171Don’t Miss Rollover Deadlines . . . . . . . . . . 130TIP 172And Finally, a Roth Conversion Reminder . . . . . . . . . . . . 130CHAPTER ELEVEN Triple Threat: Turning Your Health Savings Account into a Retirement Powerhouse .131Tip 173The Power of the Triple Tax Advantage of Health Savings Accounts . . . . . . . . . . 131CHAPTER TWELVE The Fast Lane Mastering the Road Rules for Maximum Auto Deductions . . 135TIP 174Start with Total Miles—No Fake Reverse-Odometer Tricks . . 136TIP 175Log Business Trips Like You’re Planning the Perfect Skip Day . . . . . . . 136TIP 176Standard Mileage Vs. Actual Expenses—You Get to Choose . . . . . . . . . 136TIP 177Checklist to Pick a Method . . . . . . . . 137TIP 178Luxury Car Depreciation Has Limits—Apologies to the Ferrari Owners . . . . . . . 138TIP 179Want a Big Deduction? Think SUV, Not Ferrari . . . . . . . 139TIP 180A Home Office Turns Every Trip into a Business Trip . . . 139TIP 181Rideshare Drivers Are Businesses—Even if It’s a Side Gig . . 140TIP 182Yes, Even Cash Tips Count . . . . . . 140TIP 183Advertising Wrap? You’ve Turned Your Car into a Business Asset . . . . . . . . . 141TIP 184Parking and Tolls—The Little Deductions That Add Up . 141TIP 185Charitable Mileage—Doing Good Still Gets 14 Cents per Mile . . . . . . . . . 142TIP 186Charitable Parking and Tolls—Also Deductible . . . . . . . . 142TIP 187Medical Mileage. Sometimes Necessary, Sometimes Deductible . . . . . . 143TIP 188Moving Expenses? Nope. . . . . . . . . 143TIP 189Standard Mileage Includes Depreciation—Don’t Forget This . . . . . . . . 143TIP 190Personal Property Taxes May Be Deductible—If They Qualify . . . . . . . 144TIP 191Buying Vs. Leasing? Run the Numbers . . . . . . . . . 144TIP 192Employer Reimbursements Mean No Double Dipping . . 144CHAPTER THIRTEEN Wait ... You Tried to Deduct What?: Debunking the Wildest Tax Myths in the Book 147TIP 193“My Dog Is My Security System—So He’s a Business Expense.” . . . . . . . . 148TIP 194“I Can Deduct My Wedding Because I Networked There.” . . . . . . . . . 148TIP 195“My Vacation Was a Business Trip Because I Talked About Work.” . . . . . . . . . . . 149TIP 196“I Bought Clothes for Work, So Therefore I Can Write Them Off.” . . . . . . . . . 149TIP 197“I Can Write Off My Kids Because They Help Me on TikTok.” . . . . . . . . . 149TIP 198“My Boat Is for Client Entertainment.” . . . . . . . . . . . 150TIP 199“I Can Deduct My Divorce Attorney. It’s My Future Financial Planning!” . . . . . . . 150TIP 200“I Can Write Off My House Because I Host Friends Who Talk About Business.” . . . . . . . . 151TIP 201“My Gym Membership Is a Health Deduction.” . . . . . . . 151TIP 202“I Can Write Off My Dating App Subscriptions. They’re Client Research.” . . . . . . . . 152TIP 203“My Tattoo Is Advertising. It Has My Company Logo.” . . 152TIP 204“My Pool Is a Medical Expense Because It Reduces My Stress.” . . . . . . . . . 152TIP 205“I Lost Money on Crypto, so I Don’t Need to Report It.” . . . . . . . 153TIP 206“The IRS Doesn’t Care About Side Cash.” . . . . . . . . 153TIP 207“My Vacation Rental Losses Don’t Matter Because It’s Just a Hobby.” . . . . . . . 154TIP 208“I Don’t Need Receipts. The IRS Trusts Me.” . . . . . . . . . . 154TIP 209“If I Owe Less Than $1,000, They Won’t Care.” . . . . . . . . 154TIP 210“I Don’t Have to File if I Didn’t Make Much Money.” . . . 155TIP 211“If I Get Audited, I’ll Just Say My Accountant Did It.” . . 155TIP 212“The IRS Won’t Notice. I’m Too Small.” . . . . . . . . . . . . . 156CHAPTER FOURTEEN The Great Extension: Mastering April Deadline & Uncle Sam’s Good Side ...157TIP 213File Electronically. It’s Faster, Safer, and Smarter . . . . . . . . 158TIP 214Uncle Sam Needs to Hear from You by April 15 . . . . . . . 158TIP 215Even if You Can’t Pay Your Tax Bill—File Anyway! . . . . . 159TIP 216Now, Even if You Extend, You Still Have to Pay What You Owe . . . . . . . 159TIP 217If You Owe, Make Your Payment Online . . . . . . . . . 160TIP 218Set Up an IRS Payment Plan if You Can’t Pay in Full . . . . 160TIP 219Short-Term Payment Extensions—The 180-Day Grace Period . . . . . . 161TIP 220Paying with a Credit Card: Good Idea or Bad One? . . . . . 161TIP 221Track Your Refund (or Payment) . . . . . . . . . 162TIP 222All Refunds Aren’t Instant—Even When You E-File . . . . . 162TIP 223How to Fix a Mistake: Form 1040-X . . . . . . . . 162TIP 224Don’t Forget to Amend Your State Return Too . . . . . . . . . 163TIP 225The IRS Does Forgive Penalties—Sometimes . . . . . . . . . . 163TIP 226How IRS Interest Really Works—And Why the Penalty Adds Up So Fast . . . . . . . . 163TIP 227Ignoring IRS Letters Doesn’t Make Them Go Away . . . . . 164TIP 228Create an IRS Online Account—It’s Your Digital Tax Dashboard . . . . . . . . . 164TIP 229Get an IRS Identity Protection PIN (IP PIN)—Especially if You’ve Ever Been Hacked . . . . . . 165TIP 230Know What “Injured Spouse” Means . . . . . . . . 166TIP 231Same with “Innocent Spouse” . . . . . . . 167TIP 232And My Quick Public Service Announcement . . . . . . . . 168TIP 233Keep Your Tax Records—But Not Forever . . . . . . . 169TIP 234Celebrate Responsibly—And Then Make a Note to Start Earlier Next Year . . . . . . . . 169CHAPTER FIFTEEN The Goodfellas Guide to the IRS: Surviving an Audit Without Losing Your Cool . . . . . 171TIP 235Reporting Round Numbers (aka “The $500 Rule”) . . . . . 172TIP 236Large Deductions Compared with Your Income . . . . . . . . 172TIP 237Unreported 1099 Income . . . . . . . . 172TIP 238Claiming 100% Business Use of a Vehicle . . . . . . . 173TIP 239Excessive Meal and Entertainment Deductions . . . . . . 173TIP 240Home Office Abuse . . . . . . . . . 174TIP 241Cash-Heavy Businesses . . . . . . . . . . 174TIP 242Claiming the Earned Income Tax Credit (EITC) Incorrectly . . . . . . . . 174TIP 243Amending Returns Every Year . . . . . . . . . 175TIP 244“Hobby” Businesses with Years of Losses . . . . . . . . 175TIP 245Don’t Panic—An Audit Isn’t an Indictment . . . . . . . . . . . 176TIP 246Know What Kind of Audit You’re Dealing With . . . . . . . 177TIP 247Respond Before the Deadline—Or Fuggedaboutit . . . . . . 177TIP 248Bring Receipts—Literally . . . . . . . . . . . 177TIP 249Get a Professional—Your Consigliere . . . . . . . . . . . 178TIP 250Don’t Volunteer Extra Information . . . . . . . . . . . . 179TIP 251Get Everything in Writing—No Backroom Deals . . . . . . 179TIP 252You Can Appeal. Don’t Let One Agent Be Judge and Jury . . . . . . . . 179TIP 253Fix Whatever Triggered the Audit . . . . . . . . 180TIP 254Celebrate the Win—Even if You Owe Money . . . . . . . . . 180Conclusion . . . . . . . . . . 181APPENDIX A Recordkeeping That Actually Saves You Money . . . . . . 185APPENDIX B DIY Versus Hiring a Tax Pro . . . . . . . . 189APPENDIX C I Need a Tax Pro . . . . . . . . . 193APPENDIX D Think About State Taxes Before You Move . . . . . . 197Acknowledgments . . . . . . . . . . . 203Index . . . . . . . . 205About the Author . . . . . . . 217