However, few of us want to pay more than our fair share . There is a significant distinction between tax minimization and tax fraud. Reducing Taxes There are a number of tax code rules which allow for income tax minimization. In most cases, these rules require good book keeping and itemization of deductions.
Many people are happy to take the standard deduction offered.
Many people also fail to explore the itemized deductions beyond their mortgage interest and taxes. A tax preparer can help you to pinpoint areas you might be overlooking on your taxes. The new Taxpayer Relief Act of 1997 provides a number of new provisions which may help you save taxes. The law has also lowered the tax rate on capital gains on property held over 18 months and added a capital gains exclusion for certain gains on the sale of a principal residence. Tax preparation can be complicated for some.