In most cases whenever it comes to paying taxes people tend to lower the amount that is to be paid in the form of tax to as least as possible. Now out of the many ways that are there in which you can reduce your tax amount that you owe some have proved to be quite effective while others are totally ridiculous.
Here is a list of 5 such ridiculous tax loopholes that you should know about!
The yacht deduction
Basically anything that comes under the legal definition of home can be mortgaged and thus taxes can be avoided. Now since yatches too come under it, if you mortgage it, you can actually get a tax break. It qualifies for tax break if it has a place for sleeping, toilets, kitchen and it’s done!
Tax-free rental income
Usually when you rent a house, the income that you receive from it, a part of it is paid in the form of tax. But in cases where you rent your house only for 15 days, in that case no taxes have to be paid. Thus many smart landlords whose houses are near event centers that attracts tourists, they rent their houses to them for this short period. In this way they earn money as rental income and still aren’t obliged to pay for any taxes.
Now to have a tax deductible healthcare bill, one has to exceed the 7.5% of their income in it. Now since this is not practical you can consider another option. For those who have Health Savings Account (HSA) are eligible to combine all of their previous health care bills that haven’t been claimed yet as well as the planned future expenses. This will help in tax deduction.
Losses before winnings
This tax honesty is dedicated for the love of gambling. According to this strategy, you can actually get tax deduction for your gambling losses. In this case you are allowed by the IRS to deduct the money that has been won by you on a gambling trip. Along with that you can also deduct expenses that you had to incur while travelling to your gambling destination such as traveling, hotel room bills, boarding etc.
In cases where if you lent your money to someone but never received it back, you can actually deduct that particular amount from your taxes that you gave to someone as loan. Initially this was for business purposes but these days personally loans given to any family member or your friends even qualify for this. This helps you getting out of money crisis.
Thus these are some really strange but helpful methods to that help in deducting your taxes. This is totally reasonable and helps you in making a significant amount of tax free as well as a tidy bit of money. So go you can totally go ahead with these and lower your taxes.