“The hardest thing in the world to understand is the Income Tax”
Introduction to the Tax Series
It’s tax time and everyone’s thoughts seem to be on taxes. We decided to help by providing a perspective of a financial advisor who happens to be a CPA as well. It will be intended to inform and educate. This theme will appear in the coming weeks leading up to tax filing deadlines in the middle of April and beyond. The lineup will be as follows:
Part I - What do Plumbing and Taxes have in common?
Part II - Demystifying the Tax Benefits of IRA’s and ROTH IRA’s
Part III - What to do if You Owe Money to the IRS
Part IV - Preparing for the New Tax Law
Part I: What do Plumbing and Taxes have in common?
We have all heard the phrase on TV crime dramas: “He who represents himself in court has a fool for a client”. We believe this concept applies equally to your taxes. Which leads to my plumbing project. If you think there is no connection between my plumbing and your taxes, think again.
When my kids were younger, we wanted to modernize their bathroom without a complete remodel. The first priority was to swap out old faucets made of the kind of plastic that turns yellow. When my wife and I agreed, we then disagreed (married readers will understand). She expected me to call a plumber and I was expecting to do it myself. How difficult could it be? Initially, I prevailed and was committed to proving her wrong. We picked out the replacement faucets. I went back home and, armed with my tool chest, proceeded to scope out the project. It should be noted that I seldom used my own tools, and trepidations aside, it was too late to turn back. “I got this!” was my valiant refrain, that is, if I could find a wrench that would fit underneath the sink. After 30 minutes of futility and frustration, I tried disconnecting the faucets from the top, only to see, to my horror, the plastic break and water start gushing everywhere. Only then did I suffer the indignity of asking my wife to shut off the water main, after which I called a plumber. I was happy to pay to get it done right.