How to Pay Zero Taxes, 2005 (How to Pay Zero Taxes)

Rating:
Summary: Great for Long-Term Tax Planning
Review: Recommended for anyone who wants to implement long-term tax strategies to reduce or eliminate their tax liabilities. Long-term strategies require careful planning, and Schnepper's historical and legal approach will show you the advantages and pitfalls of various tax strategies.

Pros:
Comprehensive guide to tax deductions and tax credits. As the subtitle says, this book covers "every tax break the IRS allows." Author Jeff Schnepper focuses exclusively on tax planning. This book is not to be used to help you prepare your tax return. You will not find line-by-line instructions or IRS forms. Schnepper advocates a solid approach to tax planning: shift taxable income into non-taxable income, or shift taxable income to family members in a lower income tax bracket, increase your tax deductions, and increase your tax credits. Schnepper excels in the discussion of various tax shelters, and giving his opinions on which shelters are better, and which are to be avoided. Chapters 7 and 8 on various tax shelters are the best chapters in the book. Excellent binding.

Cons:
Schnepper organizes his material historically, which may be good or bad depending on your tastes. His discussion of a particular tax item proceeds through various tax laws, noting changes in the law or various tax court cases. The current information will always be towards the end of a particular section. The author does not clearly distinguish between tax credits available to individuals and those available only to businesses. Also, since this is not a tax preparation book, the author does not tell you which tax forms and lines to use to claim the various deductions and credits. The advantage of this historical approach is you see how a particular tax shelter has changed over the years (for example, owning a home). The disadvantage is the overwhelming about of information.

Very Minor Problems:
No book, however comprehensive, can include everything. An excellent tax-saving strategy for investors is investing in qualified small business stock, the so-called Section 1244 stock. Schnepper does not discuss this strategy. The preface reads like one long junk mail. When it comes to taxes, I prefer to leave hype and promotion behind, and focus on the ins-and-outs of how to save money on taxes.