n the United States, many individuals and organizations must pay income tax. Income tax is money that citizens have to pay for federal, state, and local government services. In order to pay this tax, people need to file a tax return every year with the Internal Revenue Service. It’s a complicated system, but there are many books which can help you understand it better. Here are some of the best books on taxation.
Best Books on Taxation: THE LIST
1. Tax-Free Wealth | By Tom Wheelwright
After 31 years… Major Tax Reform ― and what it means to you True overhaul of the tax law only happens about once every 30 years. In the past 75 years, the U.S. tax law has only seen three major revisions; one in 1954, the next in 1986, and most recently at the end of 2017. I have been fortunate as a tax professional to be heavily involved in the last two reforms. In 1986, I was a manager in the National Tax Department (NTD) of Ernst & Whinney (now Ernst Young). My primary responsibility during my three years there was to create, teach and administer tax courses to the Firm’s U.S. tax professionals. Just as I arrived in the summer of 1985, I discovered that much of NTD’s resources were being devoted to following the tax reform bill that had been introduced that year. This gave me, as a young tax professional, some amazing insight into the legislative process as well as the horse-trading for tax reform. President Reagan wanted two things; simplicity (the 1985 act was called the Tax Simplification Act of 1985) and he wanted it to be revenue-neutral (no net increase to the deficit). It took another year before the bill was finally passed as the Tax Reform Act of 1986. (Simplicity took a back seat to other goals of the reform.) In 1986 the big winners from tax reform were individuals, with significantly lower tax rates, insurance companies (who got by relatively unscathed), and businesses.
The big loser was real estate investors (the passive loss rules were used as a last-ditch effort to make a “revenue-neutral” bill. The result a few years later was the Savings and Loan debacle accompanied by a massive real estate depression and the government bailing out real estate through the RTC (Resolution Trust Corporation). Fast forward 31 years to 2017. President Trump had promised economic stimulus and had stumbled out of the blocks with the failure to repeal ObamaCare. Everyone thought tax reform would take two years to complete as it had in 1985-1986. Instead, the Republican-controlled Congress was able to use slick procedural rules to pass major tax reform in record time (less than three months from start to finish). The result was a bill the consequences of which and application of which are still largely unknown. Known are the clear winners and losers. Losers include employees with lost deductions for moving, investment expenses, and reductions in home mortgage interest and state income tax deductions. Winners include big corporations, with a major tax reduction from 35% too big corporations, with a major tax reduction from 35% to 21%, small businesses, with a 20% net income deduction, and real estate, with major depreciation incentives and the 20% net income deduction given to other small businesses.
The key to remember is that very few people had the chance to influence this legislation. Everyone has the same chance to take advantage of the windfalls given to the winners. Employees can choose to be independent contractors and receive the 20% small business deduction. Service professionals who were left out of the 20% deduction can now become C corporations and reduce their tax rate to 21%. Investors who received tax benefits from the costs of investing in the stock market can either begin investing in real estate, with its massive tax benefits or invest through their Roth IRA or Roth 401(k) and avoid tax altogether on the income and gains from their investments. Tax-Free Wealth is about using the tax law the way it’s meant to be used – as a series of incentives to do what the government wants you to do. This Second Edition incorporates some ideas of how to use the new incentives. The reality is that the incentives don’t really change that much. The government still wants businesses to hire employees, so businesses receive tax benefits for doing so. The government still wants investors to provide housing for renters (even more so now), so real estate investors receive large tax breaks for following through on the government’s goals. Energy is still favored, both traditional energy (oil & gas and coal) and renewable energy (wind, solar and hydroelectric). For U.S. taxpayers, you will find helpful tips in this new edition to help you apply the new tax incentives to your situation. As a bonus, I have included information and a link to a free eBook that you can download detailing the Top Ten Tax Benefits from the Trump Tax Reform.
2. 475 Tax Deductions for Businesses and Self-Employed Individuals | By Bernard Kamoroff
Are you paying more taxes than you have to? The IRS is certainly not going to tell you about a deduction you failed to take, and your accountant is not likely to take the time to ask you about every deduction you’re entitled to. As former IRS Commissioner Mark Everson admitted, “If you don’t claim it, you don’t get it. That’s money down the drain for millions of Americans.” This invaluable book, updated to reflect changes in tax law, not only lists the individual items that are deductible—from Internet domain name costs to theft losses—but also explains where to list them on your income tax form. “Tax law isn’t easy,” the author explains, “but this book is.” The twelfth edition will be completely updated to include new changes in tax law, a chapter on home-based businesses, and include a special “jump out” highlights in the A-to-Z listings for any deduction that has special rules for home-based businesses.
3. The Book on Tax Strategies | By Matthew MacFarland
Powerful techniques anyone can use to deduct more, invest smarter, and pay far less to the IRS!
Are you dreading tax season? Not sure how to maximize deductions for your real estate business? CPAs Amanda Han and Matthew MacFarland share the practical information you need to not only do your taxes this year, but to also prepare an ongoing strategy that will make your next tax season that much easier.
It’s time to take control of the bookkeeping practices for your real estate business. Start saving thousands with a great tax strategy!
In this book, you’ll learn:
- Creative methods to maximize your tax deductions
- Clever ways to write off your kids
- Strategies to write off every penny on your travel
- Easy tips and tricks to cut down on bookkeeping time
- Simple procedures that will protect you from an IRS audit
- And much more!
With little resistance from law or society, surveillance capitalism is on the verge of dominating the social order and shaping the digital future — if we let it.
4. The Book on Advanced Tax Strategies | By Matthew MacFarland
When it comes to taxes, it’s not about how much money you make―but how much money you actually keep. Are you tired of working hard all year, just to lose the largest chunk of that money to the IRS?
Believe it or not, the U.S. tax system is filled with loopholes designed specifically to benefit real estate investors just like you. In this comprehensive follow-up to The Book on Tax Strategies, bestselling authors and CPAs Amanda Han and Matthew MacFarland bring you more strategies to slash your taxes and turn your real estate investments into a tax-saving machine.
Inside, you will learn:
- How to use your rental properties to legally wipe out your taxable income
- Tax-deferral and tax-free techniques to significantly increase your return on investments
- How to supercharge your nest egg with self-directed investment strategies
- Everything you need to know to take advantage of the opportunity zone tax benefits
- Strategies to take cash out of a 1031 exchange without paying taxes
- How to take advantage of the tax reform benefits in all of your real estate deals
- Common retirement-investing tax traps and how to avoid them
5. How to Pay Zero Taxes | By Jeff Schnepper
Save BIGGER THAN EVER with this fully updated edition of the classic tax-saving guide!
Presented in language anyone can understand, How to Pay Zero Taxes 2020-2021 delivers everything you need to take full advantage of the newest tax laws―and pay the IRS less than ever before. Schnepper uncovers hundreds of sanctioned deductions, shelters, credits, and exemptions and provides invaluable tax tips you’ll only find here. You’ll learn how to navigate the tax code like a pro and save the maximum legal amounts on:
• Capital gains and dividends
• IRA and retirement plans
• Converting personal expenses into deductible business expenses
• Charitable deductions
• Child care and elder care
• Moving and job-hunting expenses
• Mortgages and points
• Investment expenses
Every April, thousands of people around the country pay far more than they have to. Don’t give the IRA one dollar more than the law requires. Use How to Pay Zero Taxes 2020-2021 to keep more of your hard-earned money in your own pocket.
6. The Tax and Legal Playbook | By Mark Kohler
The Tax Rules Have Changed. Your Business Should, Too.
The Tax Cut and Jobs Act of 2017 marks the biggest tax reform in more than 30 years. The changes to the tax code are complex (especially for the small-business owner), but you don’t have to go it alone. CPA and Attorney Mark J. Kohler delivers a comprehensive analysis of the new tax and legal structure you desperately need to help make the new tax law work for you.
In this revised edition of The Tax and Legal Playbook, Kohler reveals clear-cut truths about tax and legal planning and delivers a practical, play-by-play guide that helps you build wealth, save on taxes, and protect your assets. Using real-world case studies, tax-savvy tips, game plans, and discussion points, Kohler coaches you through the complexities of the tax game of the small-business owner. You’ll also learn how to:
- Examine your business needs and pick the right business entity for you
- Build your personal and corporate credit in eight steps
- Implement affordable asset protection strategies
- Take advantage of underutilized business tax deductions
- Pick the right health-care, retirement, and estate plans
- Bring on partners and investors the right way
- Plan for your future with self-directed retirement fundsReading from cover to cover or refer to each chapter as needed, you will come away wiser and better equipped to make the best decisions for your business, your family, and yourself.
7. J.K. Lasser's 1001 Deductions and Tax Breaks 2022 | By Barbara Weltman
The definitive guide to all income-tax deductions and credits for the everyday taxpayer
Millions of Americans overpay their taxes by billions of dollars every year. J.K. Lasser’s 1001 Deductions and Tax Breaks 2022: Your Complete Guide to Everything Deductible provides an invaluable tool by thoroughly explaining and keeping track of the constantly advancing tax law code for the ordinary taxpaying Americans. The fifth edition of this popular book has been fully updated to reflect the latest rulings and laws, allowing the reader to easily refer to the appropriate deductions for their particular needs.
This guidebook answers the most common tax questions regarding deductions and credit in a clear, and easy-to-follow guide. It provides readers with:
- Answers to the most common tax questions regarding deductions and credit
- Comprehensive information on each deductible expense, including dollar limits and record-keeping requirements
- An e-supplement with the latest tax developments from the IRS and Congress
- Information regarding the American Rescue Plan Act (ARPA) and the Consolidated Appropriations Act, 2021 (CAA)
Ideal for taxpayers and tax professionals, 1001 Deductions and Tax Breaks, 2022 helps the American taxpayer claim what is rightfully yours and keep more of your hard-earned money.
8. The Power of Zero | By David McKnight
OVER 250,000 COPIES IN PRINT, WITH A NEW CHAPTER ON THE 2018 TAX CUTS.
There’s a massive freight train bearing down on the average American investor, and it’s coming in the form of higher taxes.
The United States Government has made trillions of dollars in unfunded promises for programs like Social Security and Medicare—and the only way to deliver on these promises is to raise taxes. Some experts have even suggested that tax rates will need to double, just to keep our country solvent. Unfortunately, if you’re like most Americans, you’ve saved the majority of your retirement assets in tax-deferred vehicles like 401(k)s and IRAs. If tax rates go up, how much of your hard-earned money will you really get to keep?
In The Power of Zero, McKnight provides a concise, step-by-step roadmap on how to get to the 0% tax bracket by the time you retire, effectively eliminating tax rate risk from your retirement picture. Now, in this expanded edition, McKnight has updated the book with a new chapter on the 2017 Tax Cuts and Jobs Act, showing readers how to navigate the new tax law in its first year of being in effect, and how they can extend the life of their retirement savings by taking advantage of it now.
The day of reckoning is fast approaching. Are you ready to do what it takes to experience the power of zero new frameworks that advance progress.
9. Taxes for Small Business Quickstart Guide | By Ken Colwell
THE ULTIMATE BEGINNER’S GUIDE TO STARTING A BUSINESS IN 2021!
Have you ever dreamt of starting your own business and living life on your terms?
Do you have an idea for an amazing product or service but you aren’t sure how to build a business around it?
Then you NEED this book. Buy now and start reading today!
Are you a current business owner who struggles to identify your customers and deliver true world-class value?
Everything you need to know is included in these pages!
Do you want to build your hobby business into a fully-fledged venture that will help you build the life you deserve?
Then you NEED this book. Buy now and start reading today!
The same book adopted for college-level entrepreneurship course material!
The most comprehensive guide ever developed for starting and growing a business!
In the highly competitive world of business, what makes or breaks a new entrepreneur?
Sourced from over twenty years of firsthand experience working with entrepreneurs, new ventures, and high-growth startups, author Ken Colwell, PHD, MBA has the answers.
In his comprehensive Starting a Business QuickStart Guide, Ken Colwell concisely presents the core fundamentals that all new entrepreneurs need to know to get started, find success, and live the life of their dreams.
Business and entrepreneurship students, small business owners, managers, and soon-to-be entrepreneurs will all find a wealth of value within the pages of the Starting a Business QuickStart Guide.
From the very first steps conceptualizing your venture to winning your first customers, delivering value, and turning a profit, this book acts as an invaluable blueprint for your path to entrepreneurial success. Colwell’s clear voice, extensive experience, and easy-to-understand presentation come together to make this book a must-have resource in the library of every budding entrepreneur!
- Would-Be Entrepreneurs With a Ton of Passion!
- Entrepreneurial Students of All Ages!
- Beginners with Zero Prior Experience!
- Managers, Business Owners, and Decisions Makers Growing into a New Role!
- The Difference Between an Idea and an Opportunity!
- What Makes an Entrepreneurial Opportunity Great!
- The Very First Steps You Need To Take To Get Your Venture Off The Ground!
- Pricing, Competition, Customer Identification, Marketing, and Distribution Demystified!
- The REAL Components of an Entrepreneurial Mindset!
- Exactly How To Craft Your Value Proposition!
- How to Write a Comprehensive Business Plan!
10. The Executor's Handbook | By Theodore Hughes
Acting as the executor, representative, or administrator of an estate is a complicated and time-consuming task. It’s time consuming, complicated, and emotionally taxing. Here is a comprehensive guide to help you understand the basics of the procedures that settle an estate
Readers say it best: “This book covers all aspects of estate settlement in a complete and thorough manner.”, “The book is written in easy-to-understand terms, with lots of good practical advice.”, “I actually bought it to place in my file cabinet along with my Trust documents, Living Will and other documents”, “We liked it so much, I bought this book for a friend who was handling a new estate.”
.In practical and straightforward language, it covers all aspects of estate administration, including funeral arrangements, organ donation, administering probate, dealing with the deceased’s assets and liabilities, and personal representative’s compensation. You will understand not only your responsibilities but the responsibilities of those who will be assisting you. Tables of state income tax rates, intestacy laws, and state-by-state probate requirements are also included, and a glossary, index, and list of recommended works complete this handbook.
11. The Panama Papers | By Frederick Obermaier
11.5 million documents sent through encrypted channels. The secret records of 214,000 offshore companies. The largest data leak in history.
In early 2015, an anonymous whistle-blower led investigative journalists Bastian Obermayer and Frederik Obermaier into the shadow economy where the super-rich hide billions of dollars in complex financial networks. Thus began the ground-breaking investigation that saw an international team of 400 journalists work in secret for a year to uncover cases involving heads of state, politicians, businessmen, big banks, the mafia, diamond miners, art dealers and celebrities. A real-life thriller, The Panama Papers is the gripping account of how the story of the century was exposed to the world.
12. Get What's Yours | By Laurence Kotikoff
Get What’s Yours has proven itself to be the definitive book about how to navigate the forbidding maze of Social Security and emerge with the highest possible benefits. It is an engaging manual of tactics and strategies written by well-known financial commentators that is unobtainable elsewhere. You could try reading all 2,728 rules of the Social Security system (and the thousands of explanations of these rules), but academia’s Kotlikoff, the popular press’s Moeller, and public television’s Solman explain the Social Security system just as comprehensively, and a lot more comprehensibly. Moreover, they demonstrate that what you don’t know can seriously hurt you: wrong decisions about which Social Security benefits to apply for cost individual retirees tens of thousands of dollars in lost income every year. (Some of those people are even in the book.)
Changes to Social Security that take effect in 2016 make it more important than ever to wait as long as possible (until age 70, if possible) to claim Social Security benefits. The new law also has significant implications for those who wish to claim divorced spousal benefits (and how many Social Security recipients even know about divorced spousal benefits?). Besides addressing these and other issues, this revised edition contains a chapter explaining how Medicare rules can shape Social Security decisions.
Many other personal-finance books briefly address Social Security, but none offers the full, authoritative, yet conversational analysis of Get What’s Yours.
Get What’s Yours explains Social Security benefits through basic strategies and stirring stories. It covers the most frequent benefit scenarios faced by married retired couples; by divorced retirees; by widows and widowers. It explains what to do if you’re a retired parent of dependent children; disabled; an eligible beneficiary who continues to work. It addresses the tax consequences of your choices, as well as the financial implications for other investments. It does all this and more.
There are more than 52 million Americans aged 54 to 69. Ten thousand of them reach Social Security’s full retirement age of 66 every day. For all these people—and for their families and friends—Get What’s Yours has proven to be an invaluable, and therefore indispensable, tool.
13. Every Airbnb Host's Tax Guide | By Stephen Fishman
All 2.9 million Airbnb hosts in the United State can profit from this book. The first, and still only, one of its kind, it tells hosts everything they need to know about taxes for short-term rentals, including deductions they may take, depreciation, when short-term rentals are tax-free, repairs, and tax reporting for short-term rentals.
The new edition covers all the latest tax changes brought about by the Coronavirus legislation passed by Congress. These include new tax breaks that can save hosts thousands in taxes: tax credits for sick leave and family leave for self-employed hosts, employee retention credit, and tax-free treatment of landlord PPP loans
Many Airbnb hosts have lost money due to the Coronavirus pandemic. This book explain if, when, and how short-term rental hosts may deduct their losses from other nonrental income.
Final Thoughts on the Best Books on Taxation
After 31 years… Major Tax Reform ― and what it means to you. True overhaul of the tax law only happens about once every 30 years. In 1986 the big winners from tax reform were individuals, with significantly lower tax rates, insurance companies (who got by relatively unscathed), and businesses. The big loser was real estate investors (the passive loss rules were used as a last-ditch effort to make a revenue-neutral” bill). The reality is that the incentives don’t really change that much.
Do you see a book that you think should be on the list? Let us know your feedback here.
James is the editor-in-chief at biggerinvesting.com. James is a workaholic and an entrepreneur who has been in the tech industry for over ten years. He has worked with Microsoft, owns multiple websites, and now owns a mattress shop. Furthermore, when he has time left over, he will be in his woodworking shop building furniture as a side hustle. James has a B.S. in Business Management Information Systems and a Master’s in Business Administration from Liberty University. He is currently pursuing a Master’s in Executive Leadership, and once he completes that, he will pursue his Ph.D. in Business Administration – Entrepreneurship. James also seeks investment opportunities, putting his money to work instead of himself.