Write Off 101

The Basic Lesson

Tax seminars and tax forums do not teach write off 101. Write off is a broad topic stemming from two perspectives … income deductions and balance due relief.

From an income deduction point of view, we all look for opportunities to earn income and reduce taxable income. Individuals and business focus first on earning money and then rely on hearsay, luck, tax professionals and the irs to fold in their favor with regard to deductions.

It’s a game we all play and hope to win. We are drafted to play the game and don’t have a choice. The name of the game is "earn money, pay tax".

We don’t look to beat irs with slight of hand to pay less tax. We are up front to tell’m how much we earn, and we take advantage of provisions in tax policy to reduce taxable income with legitimate deduction.

Legitimate deduction is pre-determined and published in tax instructions prior to filing tax return. The burden is on each of us to read volumes of instruction. We fall short with understanding at times and wind up owing a tax bill.

A tax bill often presents a challenge for individuals/business to pay and for irs to collect. There are provisions in tax policy to have a balance due written off. For the right reasons, under the right circumstances, you and I are entitled to consideration for a balance due write off.

Thus, the basic 101 educational message herein is two-fold … deductions are up front write offs against taxable income, and a balance due can qualify from behind for write off.

Pose a tax question or concern relating to write offs.

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