PROTECT · VOLUME 2 OF 3 · STRATEGIESTax shelf
Tax Deductions & Credits Mastery
The second book on tax: how to lower what you owe with the deductions, credits and timing the law allows. It covers the standard deduction against itemizing under the 2026 rules, charitable giving, the credits most often missed, deductions and structure for the self-employed, deferral, and the taxes that arrive at death.
Chapters8
Reading time50 min
Worked examples30
Updated2026-10-01
What you will be able to do
- Decide between the standard deduction and itemizing under the 2026 rules, and judge whether bunching deductions pays.
- Choose a more tax-efficient way to give to charity, including appreciated investments, a donor-advised fund or a gift from an IRA after 70½.
- Check which credits your household qualifies for and why a credit is worth more than a deduction of the same size.
- Identify deductible business costs, test a home office, keep records that hold up, and weigh an S corporation election.
- Explain how deferral, the timing of income and the step-up in basis change the tax you and your heirs pay.
Contents
8 CHAPTERS · ABOUT 50 MIN- 01Standard Deduction or Itemizing What a deduction is really worth, the 2026 standard deduction, what can be itemized under the new state and local tax cap, the new deductions you get either way, and how bunching makes itemizing pay.6 min4 computed
- 02Giving to Charity Tax-Efficiently How charitable gifts are deducted from 2026, including the new deduction for people who do not itemize, and three ways to make the same gift cost less: appreciated investments, a donor-advised fund, and a gift from an IRA.6 min4 computed
- 03Tax Credits Worth Claiming Why a credit beats a deduction of the same size, refundable versus nonrefundable credits, and the 2026 rules for the child, dependent care, education, saver's and earned income credits, plus the energy credits that ended in 2025.6 min2 computed
- 04Business Expense Deductions for the Self-Employed The ordinary-and-necessary test, why each deductible dollar saves both income tax and self-employment tax, the main expense categories from vehicles to health insurance, the records that hold up, and paying estimated tax.6 min4 computed
- 05The Home Office Deduction Who can claim a home office in 2026 and who cannot, the exclusive-use and principal-place-of-business tests, the simplified and regular methods compared, and the depreciation trade-off that appears when you sell your home.6 min3 computed
- 06Deferring Tax: Retirement Plans, HSAs, Gains and Real Estate What postponing tax is worth, the retirement plans that defer the most for employees and the self-employed, the health savings account, timing capital gains and losses, real estate deferral, and when deferral backfires.6 min4 computed
- 07Business Structure, the QBI Deduction and Timing Income How a one-owner business is taxed by default, the 20% qualified business income deduction and its limits, what an S corporation election saves and costs, and how to time income and expenses across years.6 min5 computed
- 08Estate and Gift Tax, and What Heirs Pay The 2026 federal estate and gift tax, portability and the annual gift exclusion, state estate taxes, the income tax heirs face on inherited accounts and investments, the trusts that matter, and the documents every adult needs.7 min4 computed
CALCULATORS USED IN THIS BOOK