By Jeffrey Brooks, CPA, CFP, MBA for JBrooks Wealth Advisors, PC, a Professional CPA and CFP Firm   602-292-2009  Please consult with your professional tax CPA regarding your specific circumstances!  This blog tax saving strategy  is to be used only with meticulous documentation!

John is rather new client for firm who asked us to prepare his current business and personal tax returns. The former CPA prepared a draft personal tax return  reflecting $29,000 due in federal and Arizona income taxes.

John moved from Mesa, Arizona to Phoenix Arizona and was looking for a new Arizona tax advisor that was more proactive.

John was obviously upset by the amount of income tax that was due. He was never warned that he would have to pay so much in federal and Arizona income taxes!

I visited John’s Scottsdale Arizona office and  then we drove to his home in Phoenix, Arizona to see if we could get some tax deductions from his home office.

There I saw that there were assets that John was using that were not properly recorded on his business tax depreciation schedule.

John was not taking advantage of a legitimate and safe tax adduction for the business use of his office for administrative use.  John was able to reduce his rent for his dental practice by reducing his office space and using his home office for exclusive business use!

I noticed that John’s former CPA had allowed John to be paid rental income for the business use of his home. This is a not a legitimate deductible expense!

John happened to have a very expensive antique desk at home that he had paid $7,000 for many years ago. We checked around and found out that this desk is now worth $9000. We are now allowed to contribute the desk to the business and can use the desk as a valuable tax deduction on the $7,000.  We completed an inventory of business assets used from his home office.

One of the rooms at John’s Arizona house was used exclusively for filing storage for his Arizona medical practice.

John also purchased an entertainment center that he uses solely when he is working on the computer at home. John listens to music that he has enjoyed collecting over the years. However, I recommended that since the collection could be used for personal use that we not be “pigs” and deduct the music collection.

We were able to use this entertainment center for not only  playing music but for his medical library and to  keep files storage.

There were many other deductions that John’s former CPA had totally missed out on.   It gave me great satisfaction that were able to reduce his personal taxes for 29,000 down to $12,000 for the current year.

John was audited on a recent tax year and the great news was there was no tax assessment!

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About Jeffrey Brooks

Jeffrey Brooks, CPA, CFP, MBA since 1976 has specialized in helping clients save significant taxes, help businesses increase their cash flow, revenues and profits while increasing their control and satisfaction. Jeff and his accounting firm sincerely cares about the happiness of his clients.

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JBrooks Wealth Advisors, PC.

Certified Public Accountant
Address: 4647 N 32nd Street, Suite B245
Phoenix, Arizona 85018
Phone: 602-292-2009