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The $58,000 Deduction Mistake That Nearly Cost This Client Big
Episode 11
Is your tax preparer taking too many risks? Learn how we caught this mistake and saved $58,000 for this client.
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Angie M Grainger
5 December 2024
1 Min Read
The $58,000 Deduction Mistake That Nearly Cost This Client Big
Sometimes, saving money on taxes doesn’t come from new deductions but from simply taking a closer look at what's already there. In one case, we were able to save a client nearly $58,000 just by noticing a small misclassification on their tax return—a mistake that, left unchecked, could have led to far more lost deductions and increased tax risk.
The issue started when we reviewed the client's financials and noticed that $115,000 of deductible interest had been misclassified. While many tax preparers might brush over these details, we always double-check the fine points. This was more than just a bookkeeping error—it was a potentially costly oversight. By moving the deduction to its correct place on the return, we aligned the client’s taxes with IRS guidelines, enabling them to claim the full deduction.
Had this deduction stayed where it was, they would have not only missed out on the $58,000 savings, but also risked further audit exposure due to the initial misclassification. Our approach to accounting isn’t just about finding mistakes—it’s about proactive tax oversight. Clean, accurate accounting is what allows us to identify these opportunities and prevent avoidable risks.
This wasn’t just a tax win; it was a reinforcement of the importance of having clean, well-organized finances. Because we look at each client's complete financial picture, from taxes to wealth management, we’re able to identify savings and reduce risk in ways that a traditional tax preparer may overlook. We’ve seen time and again how thoroughness can lead to substantial financial wins.
When it comes to tax management, small oversights can turn into costly mistakes. By ensuring everything lines up accurately, we help clients maximize their deductions and protect their finances. Whether it’s a big opportunity or a small error, we’re here to find it.
We’re focused on one thing: helping you live a better, more prosperous life.
Want to see how much we could help you save? Connect with us to discover what proactive tax planning and clean accounting can do for your finances—and start flourishing financially and personally today. Speak with us today—we’re here to help.
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