In the movie Billy Madison with Adam Sandler, his principal tells the immature lazy man "Mr. Madison, what you've just said is one of the most insanely idiotic things I have ever heard. At no point in your rambling, incoherent response were you even close to anything that could be considered a rational thought. Everyone in this room is now dumber for having listened to it. I award you no points, and may God have mercy on your soul." This is exactly how I feel about bad tax advice. To this end we have created a list of the most often hear incorrect statements about taxes. You you have followed the advice below, please contact us immediately.

• If I stay in Florida for 6 months and a day, I don't have to pay state income taxes in___________________.

• S Corps have no taxes.

• I didn't take any money out of my business so there should be no tax.

• You get a tax deduction for your charitable donations, mortgage interest and real estate taxes. After the most recent tax law changes, only about 10% of taxpayers itemize and receive a tax benefit for giving to charity. The CARES Act allows a $300 deduction for non-itemizers, but only for 2020.

• I need to reinvest the all sales proceeds of my house to pay no tax.

• Deducting the purchase of a vehicle with your business is 100% tax deductible.

• Don't take a raise/bonus because it will bump you into a higher tax bracket.

• Incorporating a company in a state without individual income tax, such as Nevada, means that the company will not pay corporate income tax.

• You can buy a yacht and expense $100k in marina, maintenance, and fuel cost and suggesting its all deductible because it was related to a charter business with very little income.

• Employees can deduct the home office expenses incurred in this remote environment.

• If you put your assets in a revocable living trust, you are exempt from estate tax upon your death, and you will suddenly be eligible for Medicaid.

• Estate tax planning is only for the rich.

• You do not pay taxes after you start accepting social security or if you are over 70. Nothing about social security is taxable.

• You can write off all your meals.

• There is a second extension.

• An extension lets you pay the tax later.

• You don’t have to declare any income under $600.

• You can hire your minor kids without any 1099s or taxes to file for them.

• Nonprofits do not pay tax or file tax returns.

• I do not have to pay tax when Trump only paid $750.

• If your company has a mailbox in Luxembourg you don’t have to pay taxes.