There is an adage that claims that the only things certain in life are taxes and deaths. One could presume that tax laws are as easily determined and understood as one identifies death. When a person stops breathing and his brain stops functioning, he's dead. However, this is not the case with taxes. There is nothing easily understood, clear, and simple when it comes to tax laws. Thus, more tax troubles ensue not because of disregard for the tax laws but because of misinterpretation and misunderstanding of the laws. Tax collectors, indeed, have very taxing jobs. Aside from collecting taxes from people who do not want to part with their hard-earned money, they also have to ensure that these people pay their fair share. Fortunately, Texas taxes, Texas tax laws, and policies are one of the lowest and manageable among the states. There is no magic in this; Texas simply does not charge income tax for state purpose. As a result, Texas taxes are not managed by the CPA of the state but the IRS.

This instance does not mean that Texas tax laws are lax and lenient. There are still several key events that tax collectors and auditors regularly deal with regarding Texas taxes. For one, there is the matter of tax evasion. Though used interchangeably with tax avoidance, there is an essential difference between the two that makes evasion a crime. Tax avoidance simply merits finding loopholes in Texas taxes, Texas tax laws, and policies, and using these to lower tax burdens by legal means. This ensures that the individual pays the least amount of tax as legally possible. Though this may cause tension between the collector and the taxpayer, this is something that can be easily settled with an audit. If the audit confirms that all tax deductions are valid, the taxpayer can get away with his minimum tax. However, if the audit proves otherwise, and the taxpayer was found out to have employed unlawful means to evade paying taxes such as under-declaring income, he could be charged with tax evasion. The legality of the methods used to lower taxes is the difference between the two.

Even if they lack state tax, Texas taxes, Texas tax laws, and policies require that the IRS conduct regular audits. These audits ensure that the taxpayers honestly meet their obligations. These are done in three ways, and the most employed is randomization. In this method, the IRS randomly selects income tax files from the submitted returns. Since there is a probability and a chance that they would be evaluated, taxpayers are driven to be honest with their tax information, thereby, limiting tax evasion cases. The second method employs a computer program used to spot evasion patterns which are prevalent among tax evaders. Evasion patterns such as unusually large allowances for entertainment are red-flagged. Individuals who are repeatedly tagged for the same pattern are investigated.

Thus, even if Texas does not have state income taxes, stringent Texas taxes, Texas tax laws, and policies, ensure efficient tax collection. Texans do not suffer from burdensome state taxes since the tax collection system employed in the state more than suffice for needs of Texas. Texas proves that added taxes are not guarantees for increasing state income.

Tax savings through cost segregation is no longer out of reach for investors in small and medium size properties. With appraiser expertise, fees for analysis are often one-third to one-half lower than those charged by traditional preparers.

Several years ago a definitive court case ruled that tangible personal property included in an acquisition or in overall costs should be depreciated as personal property for asset recovery, using the old Investment Tax Credit principles to classify personal property.

This meant that owners of improved properties could distinguish between real property and personal property to depreciate component costs over varying useful lives. Basically, instead of depreciating an entire commercial property over 39 years, or residential roperty (single-family rentals or multifamily) over 27.5 years, certain components are correctly identified as depreciating in much less time. For about 135 items, useful life periods can be 5, 7 or 15 years. This is known as cost segregation.

The result of increasing depreciation is lower taxable income (which would have been taxed at 35%) and more income taxed at the capital gains rate (15%) when the property is sold. Furthermore, it works for any type of improved property.

Until recently, primarily large accounting firms or engineering firms implemented cost segregation studies, addressing large and newly built properties and sometimes outsourcing the analysis.

Prices for those analytical reports, usually in the $10,000 to $40,000 range, were out of reach for owners of small properties, especially those holding less-than-new assets. Unfortunately, those owners representing the largest segment of real estate investors in the country were mostly overlooked by previous providers of cost segregation services.

Now a revolutionary paradigm shift is opening the door to very significant savings for owners of small properties. Much of the change is based upon introducing the efficiencies of highly knowledgeable real estate appraisers who often apply industry-accepted cost estimation techniques before determining remaining asset life. By not “over-engineering” the staffing or production process, professional fees are lower. Yet, results can usually meet or exceed those of far more expensive reports. This approach has been successfully field-tested by IRS auditors.

Changes that appraisers are introducing to cost segregation analysis and reporting are addressing: 1) the size of the property being analyzed, 2) the age of the property, and 3) an affordable price point. O’Connor & Associates, a nationwide real estate service firm, is taking advantage of such techniques to effect these beneficial changes:

1. Owners of property with an improvement basis as low as $500,000 can benefit from cost segregation. This compares to the limited properties worth $5 to $10 million and above that previously benefited.
2. Existing properties built or purchased after 1986 offer significant savings in year-one of cost segregation, even without producing original cost documents. Capturing non-segregated depreciation from prior years is perfectly allowable by the IRS. This compares to firms previously applying the methodology only to new construction.
3. Fees are no longer prohibitive. To prepare an analysis and report for many small properties, prices are low enough to generate at least 3 times the report cost in the first year. This compares to the traditional fees ranging from $10,000 to $20,000 and up for comparable size properties.

It is wise to keep the owner’s CPA or tax preparer abreast throughout the process. For older properties, the CPA may need to complete a Form 3115 to submit with the tax return so the owner can realize savings on items not previously depreciated - without filing an amended return. Income producing properties worth as little as $500,000 can achieve a 3:1 payback ratio of tax savings over the modest price of a cost segregation report. If owned for 3 or more years, the typical payback ratio is 10:1.

Patrick O’Connor, MAI, is president of O’Connor & Associates. The firm, in business since 1974, specializes in state and federal tax reduction services, real estate appraisals and research and consulting nationwide. With offices in Houston, Dallas, Los Angeles and Newport Beach, the firm employs more than 130 people. Patrick O’Connor is frequently acknowledged by national publications as a respected source of information on real estate

Government auctions and tax sales generally occur when a homeowner is unable to pay the property taxes on their home, or their home is abandoned.

In the U.S., when city or county taxes aren't paid for an extended period of time, the property is considered "sold to the state," meaning that the deed is transferred to the area's local governing authority.

In most cases, the former owner is given a five-year window of opportunity to redeem their home by paying overdue taxes, penalties, and other costs. If the property is not reclaimed in this manner within five years, the city or county can put it up for sale in a government auction.

Most of these tax sale properties are priced for a quick sale, which often puts them well below fair market value. This is a great opportunity for first time homebuyers or low income families to swoop in and pick up a discounted home in an otherwise unattainable area.

The most important thing to remember before doing this, of course, is to make a detailed list of all expenses (including taxes) associated with the property, to ensure that it is within your price range, and won't be back on the auction block anytime soon.

U.S. taxpayers aren't the only ones to feel a bit of a crunch at tax time. In fact, we don't have it that bad.

You may not believe it after paying that huge tax bill in April, but the U.S. isn't the top of the income-tax list when compared to the rest of the world. A recent study by the Organization for Economic Cooperation and Development compared the tax rates in 30 countries.

In Belgium, a single worker with the average income paid 42% of his income to the government in 2005. Twenty-eight percent went to income taxes and 14% went to Social Security, according to the study.

The German worker also paid a combination of income and Social Security that hit 42%. In Denmark, the average worker only pays 41%.

All tax rates were based on single workers with no children. They did not take into account what the employer pays in Social Security for the worker's behalf.

In the U.S., the average worker pays 24% to income tax and Social Security combined. The rate ranks the country 19th among the 30 listed.

Mexico came in at number 30, with 8% going to the combination of income taxes and Social Security taxes.

"Countries differ in how much they decide to collect in taxes on people's income and how much tax they collect on when good are bought," explained Christopher Heady, head of OECD's tax policy and statistics division.

He points out that Mexico collects a very small amount of tax when compared to the other countries. But it collects most of its revenue on the sales of goods, not on labor. Belgium, on the other hand, doesn't charge much for sales tax, relying on labor income instead.

When all taxes were considered, including income, sales, business and others, Sweden was the top of the list. It tax revenues came in at about 50% of gross domestic product. Denmark and Belgium finished up the top three.

At the bottom of the list were Mexico, at number 30; Japan and Korea, tying for 29 and 28; and the U.S. at 27.

"The U.S. is a comparatively low-tax country. I'm sure the people filing tax returns recently wouldn't agree with that, but that's particularly because the U.S. collects a lot of its revenue from income tax and you don't have a value-added tax," Heady said.

Heady points out that high-tax countries do have benefits.

"Most of those high-tax countries have universal health-care systems. That means you don't have to pay for your own health care or pay for insurance to cover your health," he explained. The countries "usually have more generous state-provided retirement pensions than the U.S, so that people don't usually feel the need to buy a private pension. There's better provision of preschool education, and universities are cheaper. There are all sorts of public services that are provided at lower cost.

Most people don't really look forward to filing their tax returns and paying their taxes. As it is, there really isn't much to look forward to because it is a tedious process that can take weeks to complete. Some people even have the bad luck to raise the interest of the IRS. The trouble is, most of these people's mistakes are not intentional. They just lack proper tax preparation, and in all probability, must have rushed through the filing process. Lack of preparation and attention to detail are the most common faults of people who often get flagged by the IRS. Let's face it. Even if audits are not criminal in nature, they are embarrassing and distressing events people can do without.

Filing accurate tax returns and paying correct taxes are not impossible with the right preparation and a good headstart. A good headstart is important in filing because taxpayers get more lead time to organize and prepare the necessary documents. Even if there are lots of tax software available, it is a wise idea to allot a significant amount of time in reviewing past returns, current returns applications, and tax laws. Tax laws are dynamic; they can be changed or revised between the last tax season and the one coming up. There might be some important things in the revised policies that can affect your returns and deductions. Pleading ignorance of the new policies are not acceptable to the government and the IRS because everybody is presumed to know the law. Taxpayers are recommended to review their current applications especially if they've been audited before. According to the IRS, taxpayers repeating audited mistakes are not uncommon. Speaking of mistakes, "forgetting" additional income sources is the predominant mistake most people make. The IRS also compares issued forms against reported income on the returns for disparity. Still on the issue of disparity and comparison, returns are checked for names and SS numbers so they must mirror those in the SS records. Wrongly issued forms must be returned and reported to the issuer for corrections.

Wrong sums are also common mistakes due to rushing. Though tax software is usually thought of as a late taxpayer's savior, early filers can use this software to check their computations. Tax charges can usually be avoided by printing correct sums on returns. Taxpayers are encouraged to file their returns even if their current financial situation makes them unable to pay their taxes. Installment payment is an option that IRS offers. Tax matters are sensitive and can be subjected to random auditing. It is advised that taxpayers keep and file their returns of six years at the very least for reference if ever they are called for auditing. Lastly, since the agency is the one who gets burdened by tax problems, the IRS is open to giving assistance to taxpayers. With proper preparation, filing tax returns can be an easy process.

Our home is something that we all cherish more than almost everything else in our lives. This is a place to live in. and besides giving us shelter from all physical calamities it also gives much more. Unfortunately when you have a home you also have a whole other arena of tax issues to deal with. Taxes are scary and you may have felt as if the whole roof has fallen down upon your head. If this sounds familiar then you need to take a deep breathe, there are all kinds of great tax deductions that you can take to the bank! In fact your home can be a pretty spectacular tax shelter all on its own.

For example, you can deduct some of the interest on your Home Equity Loan or your Line of Credit. Unfortunately, the IRS has placed a limit on the amount that you are able to deduct. And that is not all; a Home Improvement Loan is the best way to deduct your interest from your taxes. Although, there is no dollar limit on this deduction, the loan must be taken on 'capital improvement' rather than ordinary repairing services. These 'capital improvements' can include things like new fencing, a new drive-way, new additions, swimming pools, a garage or even a new roof and these are just a few of the many things that you can get.

Everyone's home can use a little improvement and it is easy to find out just what kinds of tax deductions you can use for this kind of purpose. There are even some books that you can get to help you find out what you are eligible for as well as many different computer programs. The key to successful tax deductions is to have the knowledge on your side.

When you are a travel nurse, then you need to have a pretty good understanding of per diem rates and how they might lower your taxes. Many travel nurses believe that per diem is only a tax benefit that staffing agencies offer and yet, surprisingly, others do not. This misunderstanding about what per diem is and how it may affect your taxes is an important financial issue that you need to understand. How you report your per diem earnings could mean the difference in thousands of dollars in tax savings.

Whether you are looking to maximize deductions, reduce taxes, or increase your returns, travel nurses should take the time to learn as much as possible about the IRS per diem tax rules. Certainly, one way to learn is to go to the IRS home page and download publication 1542 and read the rules so that you have a working idea of what to expect by tax time next year. Another great resource, especially, now a days is to do your taxes yourself, if you have a personal computer or laptop. Turbo Tax is a great software program. Not only is it inexpensive and tax deductible itself, but it is very easy to work when you use the step-by-step wizard. You can walk through your entire tax return, and file it electronically. You can get your refund deposited directly into your checking account in a matter of days.

A couple of travel expenses to have a heads up about include:

* The travel nurse has a permanent tax home
* The travel nurse takes a temporary (less than 12 months) assignment away
from their tax home

Any travel nurse meeting the requirements outlined by the IRS can claim deductions for certain travel expenses or receive tax free reimbursements and tax free per diem allowance payments. These tax benefits are one of the great perks of being a travel nurse.

Unfortunately, one of the most common tax mistakes that a travel nurse makes is not being educated or even aware of the tax advantages to per diem deductions. Now that you are are aware that savvy travel nurses are eligible for per diem deductions for every day that they are on temporary assignment away from their tax home, pass on the work to your co-workers, or email them this article so that they can bookmark this overview and take advantage of these tax benefits themselves.

It is important to be aware that some companies don't pay per diem allowance, pay too little per diem, or only pay per diem as a function of hourly pay. You can learn what these scenarios mean for you personal tax situation by consulting with a tax advisor or researching the IRS rules. You deserve to to get every dollar of per diem related deductions that you are entitled to, and we hope that this article has help you.

Note: while much care has been taken to make this article accurate, tax rules do change. Please be sure that you are up-to-date on the latest IRS rules. This article is meant for informational purposes only and is not meant to replace the advice of a skilled tax advisor.