Taxes, Personal Finance | featured news

No one likes paying legal fees, but tax deductions can make them a lot less painful. With a 40% tax rate, $10,000 in deductible legal fees costs you only $6,000. But if your legal fees are to get divorced or because a family member sues you for slander, the legal fees are purely personal and non-deductible. See How To Make Divorce Less Taxing. Distinguish purely personal expenses from investment expenses.

You can get bad tax advice or no tax advice in just about any area of life, but from my reading of tax cases and some personal observations, I think that if you want to get really bad tax advice, you should get divorced.

It’s easy to gripe about the rich manipulating the rules to lower their tax rates, but sometimes it’s better to simply borrow a few pages from their playbook. Although finagling a low tax rate on income — as Warren Buffett talks freely about — is difficult for regular salaried workers, there’s another area where modest taxpayers have something to learn from the wealthy: minimizing estate taxes.

Follows are nine tips that parents might want to keep in mind while toasting champagne glasses preparing for back to school.