#tax-deductions
Maximize tax deductions and reduce your tax liability legally
Sand and gravel pits get 5% percentage depletion under IRS rules — compute cost and percentage methods yearly, claim the larger, and mind the 50%-of-income cap.
Stock that became totally worthless is deemed sold Dec. 31 under IRS Section 165(g) — report $0 proceeds on Form 8949 and amend up to 7 years back.
A 412(e)(3) plan funds pensions through insurance contracts, letting owners in their 50s deduct $100,000+ a year — with IRS-mandated fixed premiums.
Agency 1099s report gross pay with zero withholding — the IRS still wants income tax plus 15.3% self-employment tax. Set aside 25–30% per job.
A US trademark costs $350 per class in USPTO fees; with search, surcharges and an attorney, one class runs $350–$3,500, plus $325 per class in year five.
Small-business gas spend jumped nearly 31% in 2026. Track fuel per mile, split the 72.5¢/76¢ IRS mileage rate, and book fuel surcharges as revenue.
A thrift flip's true cost has five layers: price, prep, mileage, fees, shipping. Track them all, deduct only sold inventory, and reconcile 1099-Ks for the IRS.
The IRS usually limits car-donation deductions to the charity's sale price — Form 1098-C, the $500 threshold, and three FMV exceptions decide yours.
The IRS raised the 2026 business mileage rate from 72.5 to 76 cents for miles driven from July 1 — date every log entry or you cannot prove the higher rate.
Under IRS Section 469(g), a fully taxable sale of your entire rental to an unrelated buyer frees every suspended passive loss against wages and other income.
An IRS business expense must be ordinary (common in your industry) and necessary (helpful to it) under Section 162 — plus the records to prove it.
Replaced a roof or HVAC? The IRS partial disposition election deducts the old component's remaining basis on Form 4797 now, not over decades.
