Title: Bottom Line's Daily Health News
December 18, 2004

Dear Taxpayer:

We are contacting you because of the urgency of your tax situation.

While the recently passed tax cuts provide relief for most Americans, they also contain some little-known provisions that may actually increase your taxes.

Even worse: While all eyes have been focusing on the tax cut proposals, the IRS has quietly gone back to business as usual. In fact, tax preparers across the country report that the agency has resumed its harassment and oppression of taxpayers.

For many Americans, this means that the next tax season will be a nightmare.

However, thanks to new information that has never before been made public, you can avoid IRS hassles... while paying less income tax than ever before.

Here are the details:

Recently, 26 of the nation's greatest tax experts got together in New York City for a private, closed-door meeting.

These experts aren't just your average CPAs. They're "top guns" who charge up to $350 an hour -- and more.

They all took time out of their busy schedules to get together. Why? Because the information they exchanged at that secret meeting is helping them save fortunes for their clients.

You see, it takes a gathering like this one to uncover all the loopholes in the new tax laws. These are loopholes that Congress never intended when they passed the laws.

And they're loopholes that your accountant could never discover on his own -- no matter how good he is.

That's where we at Bottom Line Publishing come in. We talk to these experts. More importantly, they talk to us. And only to us.

We take their tax-saving discoveries and advice and compile it into a private bulletin called TAX HOTLINE.

To introduce you to TAX HOTLINE, I'd like to send you a FREE copy of a confidential report called The Experts' Guide To Slashing Your Taxes.

The Experts' Guide is a giant, 62,000-word manual packed with hundreds of ways to slash your taxes and pocket thousands of extra dollars a year. For example...


Get An Interest-Free Loan From The IRS!

Most taxpayers allow too much tax to be withheld from their paychecks... then file for a refund and get their money back. In effect, they're giving the IRS an interest-free loan.

Well, why not do the opposite? Simply amend your W-4 form so that you're purposely under-withholding. Take the extra cash and use it as you see fit. Then pay back the "loan" later in the year by increasing your withholding to cover the shortfall. Since the government treats withholding as if it had been taken evenly throughout the year, you pay no interest or penalties!

That's just one way to get interest-free cash. You'll find two others in your copy of The Experts' Guide To Slashing Your Taxes. To get your FREE copy, just click here!


The Stock Market Declines:
For Most People, Bad News... But You Use It To
Give Yourself a TAX-FREE Retirement!

Thanks to a quirk in the tax law, you can use stock market declines to give yourself TAX-FREE retirement income! Here's how:

As you probably know, all the money you have in your IRA will be taxed as ordinary income when you take it out.

And as you probably also know, there's now a new kind of IRA called a Roth IRA... which lets you take out money tax-free.

There's a big catch, though. If you want to convert your existing IRA into a Roth IRA, you have to pay taxes on the money now. So if you're in the 35% tax bracket and want to convert your $50,000 IRA into a Roth, it'll cost you a hefty $17,500 to do so!

What do you do? Simple: Convert to a Roth after major market declines! If these declines cause the value of your $50,000 portfolio to drop to $30,000, you'll save a whopping 40% when you convert.

But here's the best part: When the stock market rebounds and your portfolio goes back to $50,000, you will have kept yourself from ever having to pay taxes on the $20,000 difference.

Plus... any and all future gains will also be tax-free! So whether you end up with $60,000... $80,000... $100,000... or more, you can tap into that money throughout retirement and not pay a single dime in taxes!


Claim Your Parents As Dependents
-- Even If They Live Hundreds Of Miles Away
And You Pay Less Than 50% Of Their Support!

The Tax Code says you can claim someone as a dependent only if you provide more than half that person's support. But there's a little-known loophole that lets you get around the 50% requirement...

If you and your siblings share the cost of supporting your parents, you can take turns claiming them! All you have to do is decide who gets to claim them this year, then let the IRS know by filing Form 2120.

Every year thereafter, simply refile the form and change the person who claims the exemption!

More loopholes in your FREE copy of The Experts' Guide To Slashing Your Taxes. To order, just click here!


Take Early Withdrawal From IRA...
Pay NO Taxes Or Penalties!

Need cash now? Here's how to get it from your IRA -- tax- and penalty-free!

The Tax Code says that if you withdraw money from a regular IRA before age 59½, you have to pay a 10% penalty tax. But it also says that NO penalty is owed if you take the money out in the form of an annuity -- a series of equal payments over your life expectancy.

But here's how to get that cash all at once. Just take out a home equity loan of up to $100,000... then use the annuity payments from the IRA to pay the mortgage.

The annuity payments are taxable income, but since the interest payments on the mortgage are tax deductible, they offset your taxes. Depending on interest rates and your life expectancy, you can end up taking the money tax-free!


DOUBLE Your Tax Deductions
-- Without Spending A Penny More Than You Do Now!

The Tax Code says you can deduct miscellaneous deductions only if they are over 2 percent of your Adjusted Gross Income... and medical expenses only if they're over 7½ percent of your income.

But exceeding these limits is easy when you use a simple technique called "bunching." Here's how it works:

In years when you don't think you'll exceed the limits, you pay as few expenses as possible. For example, you put off paying year-end bills until January. And you shift your end-of-the-year charitable giving to January, too.

In years in which you think you will go over the limits, you bunch together as many expenses as you can from the previous and following years. For example, you prepay January's bills in December. Or you schedule elective surgery for this year instead of next.

What you end up with is a two-year approach: In Year 1, you bunch together expenses, and itemize the deductions. In Year 2, you spend as little money as possible and take the standard deduction instead.

Result: In Year 2, when you have practically zero expenses, you still get the standard deduction of $4,750. And, in Year 1, you end up deducting far more than you normally would have.

Bunching is a great way to increase your deductions. But you know what? It's just the tip of the iceberg. That's because there are dozens of legal tax deductions that you've probably never heard of. You'll find them in your FREE report, The Experts' Guide To Slashing Your Taxes. Here's a sample of what you'll discover:

  • How to legally deduct commuting expenses. Page 30
  • How to deduct part of your grocery bill. Page 29
  • How to deduct 100% of business meals. Page 46
  • How to deduct the cost of Weight Watchers® and Jenny Craig®. Page 23
  • How to deduct your married child's medical bills -- even though you don't claim her as a dependent! Little-known tax-saving secret. Page 23
  • How to deduct auto mileage even if you don't use the car for business. Page 17
  • Over-the-counter medicines aren't deductible, right? Wrong! Legal way to write off aspirin, vitamins, and more. Page 28

Much more in your FREE copy of The Experts' Guide To Slashing Your Taxes.


Turn $20,000 Into $58,000
-- And Get 3 Different Tax Write-Offs At The Same Time!

How would you like to lower your income tax... lower your capital gains tax... lower your estate tax... raise your retirement income... and help a worthy cause... all with one simple move?

Well, you can! The secret is a little-known strategy called the Deferred Payment Gift Annuity, or DPGA. Here's how it works...

You make a gift of stocks or other appreciated assets to a charity of your choice... and get a nice tax deduction. In return for the gift, the charity agrees to start paying you income on those assets in the future, usually upon your retirement.

In essence, you get to collect income on assets you no longer own. That means: 1) You don't have to pay estate taxes on the assets; 2) you don't incur a capital gain when you give away the assets; and 3) you get a hefty tax deduction now for the generous gift you just gave to charity.

Best of all, through the magic of tax-deferred compounding, you get income that far exceeds the amount of your gift! For example, if you give away $20,000 now and start drawing income on it in 10 years, you can get a total income of $58,760! If you'd like to find out more about deferred giving, turn to page 91 of The Experts' Guide To Slashing Your Taxes. To get your FREE copy, just click here.


FREE MONEY... Yours For The Asking!

It's true! This tax law allows you to claim thousands of dollars in free money from the government.

How? Through a whole slew of tax credits.

As you may know, tax credits are actual dollar-for-dollar reductions in your tax bill. So a $500 credit means you pay $500 less in taxes, a $1,000 credit means you take $1,000 off your taxes... and so on.

How do you qualify for tax credits? Well, this tax law provides so many of them, it's hard not to qualify! For example...

  • One credit gives you $1,500 a year for each dependent child that is attending college.
  • Another gives you up to $2,000 if you or your spouse are taking continuing education courses (regardless of whether or not they're career-related).
  • Another credit pays up to $2,100 of the cost of baby-sitting or day-care expenses.

These are just a few of the tax credits available under this tax law. There are many more. And you'll get complete details in your Free report, The Experts' Guide To Slashing Your Taxes.


3 Ways To Deduct Your Vacations

According to Section 162 of the Tax Code, travel and lodging expenses are deductible when the purpose of the trip is for business.

Here's the key: Those expenses remain deductible even if the trip is extended for pleasure. In effect, this lets you deduct your vacations. Here are just a few ways to do it...

  1. Mix business with pleasure. If your business meetings are spread out over a week, the overall trip is considered a business trip no matter how many vacation activities you engage in in-between. So if you have meetings on Monday, Wednesday, and Friday, and go scuba-diving on Tuesday and Thursday, the IRS will still consider it a business trip.


  2. Take a "business trip" without seeing clients. Let's say you've always wanted to go to Las Vegas. One day, while looking through your industry trade magazine, you notice there's an upcoming convention or seminar there. Bingo!

    You book a seat at the convention, which happens to be on a Thursday. But your travel agent informs you that you have to stay over the Saturday night to qualify for the airline's super-saver fare.

    Since staying over through Saturday results in an overall savings on travel costs, the IRS lets you deduct your lodging expenses for Friday and Saturday nights. Result: You get to deduct 3 days of vacation for a one-day business trip!


  3. Take it s-l-o-w. What's the best way to travel to your business destinations? Ocean liner, of course! Reason: The IRS counts days in transit as business days.

    Let's say you have a two-day business meeting in London, followed by a week of vacation. If you fly (one day each way), you're only spending 37% of your time on business (2 days of travel + 2 days of business divided by 11 days total). But if you sail (five days each way), you're spending 63% of your time on business -- even though you're enjoying yourself on the cruise!

BONUS TIP: Pay for your trip with tax-free cash! Next time you go away, finance the trip by renting out your home. According to the Tax Code, if you rent your home for under 15 days, the income is tax-free!

For more tax-wise travel tips... including how to deduct your spouse's travel expenses... see your FREE copy of The Experts' Guide To Slashing Your Taxes.


Make Your Grandchild A TAX-FREE Millionaire!

If your teenaged child or grandchild is gainfully employed, she can contribute up to $3,000 a year to a Roth IRA. The contributions aren't tax deductible, but at the child's puny tax bracket it doesn't matter.

Let's say the child puts in $3,000 a year between the ages of 16 and 20... and then doesn't contribute another dime. If the Roth IRA earns 10% per year, the child will have $1,615,363 when she's 65. And the money will be 100% tax-free!


"The IRS Would Have Fired Me
For Revealing These Secrets!"
"Ms. X," former IRS agent

One of the regular contributors to TAX HOTLINE is a former IRS agent whom we simply refer to as "Ms. X, Esq."

As a high-ranking IRS official, Ms. X gained firsthand knowledge of the inner workings of the agency -- knowledge that she shares with our TAX HOTLINE readers. For example, she reveals...

  • What IRS computers look for on your return. And how to throw them off the scent without telling anything but the truth. Page 76
  • How to deal with difficult or unscrupulous IRS agents. Just say these "magic words" and you'll turn the nastiest IRS attack dog into a pussycat. Page 80
  • How to stop an IRS collection action dead in its tracks. Just file the right form and the action automatically gets put on hold. Page 14
  • Show up at an audit without receipts; win your case anyway. Here's how. Page 84

To try a risk-free subscription to TAX HOTLINE simply click here. Discover more information in your FREE copy of The Experts' Guide to Slashing Your Taxes:

  • Tax-free income. 21 kinds the IRS can't tax. Page 7
  • Give money to your kid and deduct it as a "bad loan." 100% legal -- if you do this first. Page 83
  • Best ways to take cash out of your business. Follow these instructions, and the money is yours tax-free! Page 46
  • Easy way to put your assets out of the reach of the IRS. Protects your home, your car, and more! Page 17
  • Use this year's losses to get a refund on last year's taxes. Just file the little-known IRS form on page 51.
  • Use ordinary savings bonds as a tax-saving gimmick. Shrewd, very shrewd. Page 38
  • Have dinner with your spouse and deduct it on your tax return. Legal. Page 55
  • Clever way to make an IRS auditor close your case fast. Important: Perfectly legal. Page 78
  • How to get more money out of your 401(k) plan. Things your company's benefits department never told you. Page 70
  • Your parents pay their own medical expenses, but you get the deduction. Legal and upheld by the courts! Page 29
  • You have a capital gain of $20,000, but only pay tax on $10,000. No losses needed to offset it... just know about the big, gaping loophole! Page 38
  • Computer software program that lowers your chance of an audit! Available at most office-supply stores. Page 4
  • Deduct thousands of dollars without a single receipt! Little-known provision in the Tax Code lets you do it. Page 83
  • Give over $22,000 to your child, but pay NO gift tax. Huge loophole. Page 25
  • Deduct your employer's losses on your personal tax return! Legal! Page 48
  • Purchase shares of your company's stock and deduct the cost as a business expense! Legal. Page 53
  • Collect a pension, even though you're still employed. Clever loophole. Page 73
  • When it makes sense to give yourself a raise during a bad year. If you do it right, the IRS won't question it. Page 51
  • Take out a business loan; deduct interest and principal, too! Here's how. Page 57
  • Improve your cash flow during a bad year with free money from the IRS! Here's what to do. Page 51
  • Get the government to pay for HALF your company's research and development bill! Page 54
  • Speed up real estate depreciation from 39 years to 15 years! Little-known loophole lets you do it. Page 53
  • Deduct spouse's expenses on your business trip. Legal. Page 56
  • Convert company car to personal car; pay no tax. Legal. Page 56
  • And much more!

As you can see, The Experts' Guide is filled with dozens of secret ways to turn the tables on the IRS and cut your tax bill to shreds.

Think of all the needless taxes you've been paying. But from now on, you won't have to!

From now on, you'll be able to enjoy the fruits of your labor to the fullest and pocket thousands of dollars in extra cash. Whether you desire a new car... a remodeled home... a bigger nest egg... or whatever, you'll be able to do it.

Without scrimping and saving. Without working longer hours. Without asking your boss for a raise.

To get started, simply click here. I'll send you the next 12 issues of TAX HOTLINE for just $39. That's a full third off the basic rate.

You'll receive The Experts' Guide To Slashing Your Taxes absolutely free. Plus... if you act within the next 11 days, I'll send you an additional free gift -- the TXH-100 desktop calculator. Designed with oversized keys and a large LCD display, the TXH-100 is the fastest way to tally up all those tax savings you'll enjoy.

TAX HOTLINE comes with the following ironclad guarantee:

If it doesn't save you at least 100 times the subscription cost... if you don't find it informative and easy to understand... or if you're not satisfied for any reason whatsoever, just cancel your subscription and I'll give you a full refund. Even if you cancel on the last day of your subscription!

Either way, you get to keep both free gifts. You have nothing to lose except your debt to Uncle Sam. Please click here now.

Sincerely,





David Ellis, Esq.
Senior Tax Specialist

P.S. Remember, to qualify for the TXH-100, we must hear from you within 11 days.



Required Disclaimer: The information provided herein should not be construed as a health-care diagnosis, treatment regimen or any other prescribed health-care advice or instruction. The information is provided with the understanding that the publisher is not engaged in the practice of medicine or any other health-care profession and does not enter into a health-care practitioner/patient relationship with its readers. The publisher does not advise or recommend to its readers treatment or action with regard to matters relating to their health or well-being other than to suggest that readers consult appropriate health-care professionals in such matters. No action should be taken based solely on the content of this publication. The information and opinions provided herein are believed to be accurate and sound at the time of publication, based on the best judgment available to the authors. However, readers who rely on information in this publication to replace the advice of health-care professionals, or who fail to consult with health-care professionals, assume all risks of such conduct. The publisher is not responsible for errors or omissions.

Reply via email to