The Lake Team

We thought you might find these two important ideas regarding financial decisions and tax consequences helpful. Make sure that you understand the tax impact of any financial transaction before you enter into it.  It is unfortunately all too common that people make horrible tax errors because they had bad information or didn’t take time to evaluate.  If you are contemplating a transaction, either take the time to research the tax consequences or take the time to engage the services of a qualified tax pro.  We would be happy to make a great recommendation to you. Be sure that you are not making a financial decision base entirely on the tax issues involved.  In some cases it might work out for you, but many times you may end up disappointed.  Taxes are still a percentage game, and that means that, in the 27% tax bracket, a tax deduction of $100 will only save you $27 in taxes.  The other $73 is gone.  So, when somebody throws money away and states, “It’s Ok, it’s a write-off,” remember that there might be tax benefits, but some real cash came out of this person’s pocket.