10 Commonly Missed Tax Deductions That Could Save You Thousands

By John Persinos
February 18, 2011

By John Persinos

Taxes make it harder for investors to reach their financial goals by steadily chipping away at your income and investment earnings. That all leads to one inescapable conclusion: to build up your net worth, you must minimize the taxes you pay.

To minimize your taxes paid, you must stay apprised of the basic tax rules -- and stop letting the deductions you deserve slip through the cracks. It's hard to believe that while many folks love to complain about taxes, those same people may be failing to take advantage of the many legal deductions available to them. Come tax time, don't leave money on the table!

Maintaining tax-smart records is always a good idea. Keeping track of your deductible expenses will save you from a world of pain if the IRS decides to audit you. Nowhere is incomplete record keeping more deadly than in an audit because without documentation, any of these deductions are likely to be disavowed by the IRS in an audit. That means, when applicable, you should pay by check and credit card, or insist on cash receipts.

I recently spoke with a few accountants, who told me that the following tax deductions are the most commonly overlooked by their clients: