Every year, Americans pay millions of dollars in extra tax. Because they are concerned about or fearful of an audit, they decline to claim deductions they are fully and legally entitled to. This is the Fear Tax.
Because I write a lot about our own tax minimization efforts… (Yeah… sorry about that :/ ) I get more than my fair share of commentary in this regard:
“The IRS is coming for you, man!”
“OMG!!! You are going to get audited!!!! Ahhhhhh……!!!!!”
It’s totally worth it though, because I’ve learned a great deal and saved big dollars as a result. But also because these conversations often lead to great discussions about tax law, ethics, fairness, government accountability, and civic responsibility.
Maybe we can have another one of those helpful discussions…? This time, about the Fear Tax.
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Discounts on the stuff you are going to buy anyway are a beautiful thing.
But time is precious. Even saving 90% on a low-cost item we will only buy once probably isn’t worth much effort. On the other hand, with frequent purchases or high cost items even a few percent savings can be significant.
For us, hotels are one of those frequent purchases, so I have put extra effort into maximizing our discounts. Of course the best discount is free, and it is fairly easy to get free hotel stays. For those nights that we purchase, we typically get 20%+ off (as explained here. This post expands on that content.)
This post reviews some of the nuances of maximizing our ROI on hotel spend. I couldn’t find a good summary elsewhere so I decided to write one myself.
Even if you aren’t interested in saving $ on hotels, the thought process may still be mildly entertaining. If not, come back next post for more good times!
Disclosure: this page contains affiliate links. This means if you click on a link and make a purchase, we will receive an affiliate commission.
In the final months of each year, the Big Sales come out in force. Black Friday! Cyber Monday! Singles Day! (China)
Retailers need to make their sales numbers, and they offer all kinds of bargains* and discounts to get people into their stores. It’s like a circus, a sporting event, and an IQ test all rolled into one.
I can certainly appreciate the desire to pay less for something, assuming you were going to buy it anyway. Personally, paying retail is against my religion.
In this post I review how we routinely get discounts on everything from clothes to coffee to hotels, at a time and place of our choosing. It’s all part of a master plan to Never Pay Retail Again.
4 years ago we stepped off the employment treadmill and stopped into a life focused on travel and family.
Originally this little blog was simply intended to be a way for friends and family to see what we were up to. When people starting asking how we could be so financially secure at such a young age, I started writing a bit about money. Then we got some press, and the number of friends and family following along exploded.
The results have been life changing. So much so, I think everyone should blog.
Bloggers, digital nomads, side hustlers, and business owners have more opportunities for tax savings than the average employee. One of my favorites is the ability to turn stuff you already have or were going to buy anyway into beautiful tax deductions through depreciation.
Have an extra room in your house? Write it off. That computer you once used for Facebook but now use to write blog posts and manage investments? Write it off. The smartphone you use to populate your Instagram feed? Write it off. The new SLR camera and lenses you plan to use to share details of the nomadic lifestyle? Write ’em off!
There is nothing better than having Uncle Sam help pay for the stuff you need for your business.
Naturally this ability to write it all off is a superpower that is rife for abuse, so the IRS has a whole mess of rules to follow. But as with all rules, there are always ways to optimize to your advantage. In this post I walk through the opportunities, gotchas, and strategies for depreciation write-offs using some common side hustle tools and equipment.
