Tim Tebow and Your Taxes
Tim Tebow is the most discussed, hated, vilified player in the history of the National Football League. Listen to talk radio or ESPN - a day does not go by without a discussion of Tebow. The discussion always centers on what he can't do. He can't pass. He doesn't throw like an NFL QB. He can't succeed. All this before they get into his faith, the main source of criticism in college.
Collin Cowherd, ESPN talk show host on radio and TV has made a career based on criticism of Tebow. As I write this I'm waiting for Cowherd's show on the day following Denver's victory over the New York Jets. My guess is that the over under on the number of seconds before Cowherd mentions Tebow is 10. Cowherd, like most other hosts, follows the same formula - 1. I like the guy and don't want to bang on him; 2. He isn't that good so I don't want to waste time disparaging his abilities; 3. Spend the next 2 hours banging on everything Tebow.
Cowherd and the other critics focus on what Tebow can't do and who he isn't - all negative all time - Just like your taxes. We all have a tendency to focus on the negative, trying to react instead of act. There we are on January 31 trying to decide how we can shelter that big gain in the year before and reduce our tax liability. Trying to figure out how many miles you put on the car and how much of a business deduction you can get away with. Is that all I had withheld? We're hammered with the negative - you can't do that; you must do this; you have to file this - all a surprise, especially when it's too late to engage in any serious tax planning. Income taxes, in fact, may be only slightly more unpopular than Tim Tebow.
So how do you turn this around? If you're Time Tebow you grind and find a way to win. If you're dealing with your taxes you need to start earlier and grind away. A little discipline goes a long way here. The tools are there to make it a little easier for you turn a huge negative into a positive. Remember, reducing your taxes is not tax avoidance. The tax code has enough room to support just about any reasonable position you and your accountant might take. Avoid the red flags - stay away from the home office deduction for God's sake.
Here are some things to consider:
1. Re-examine your depreciation schedule.
2. Are you recording all your auto related expenses?
3. Do you employ a way to record your mileage? Use your smart phone.
4. Can you time out your income and expenses?
5. Are you leveraging you retirement plan to its fullest? Can you borrow against the plan if you need to?
6. Are you using online banking tools to allow you to spend more time on planning?
Tebow is not fancy, doesn't look or throw like Marino or Elway. He just puts his head down and finds a way to get the job done, and focus on the positive - the things you can control. So lets take a lesson from Saint Tim - lets focus on what we can control. Good luck to you and to Tim Tebow.
