In today’s economy, almost everyone is looking for fast cash and using tax deductions may be a solution. The tax laws are always changing and new deductions are brought to the market. Unfortunately, not everyone is aware of them. Here is a list of the deductions that are most overlooked by taxpayers.

A home sale

Owning a home gives taxpayers a benefit of hefty write-offs. They run from property taxes to mortgage interest deductions. For homeowners who sold their home, there are also benefits. They can deduct the amount of property taxes they paid while still in the home and the commission paid to an agent during the sale. Any other fees incurred at the closing can also be deducted from a tax liability.

Taxes on a car purchase

Anyone who bought a car in 2009 paid sales tax on the purchase. Some states tax car buyers every year. For example, Kentucky believes the continued taxation is a tax for “the privilege of using a motor vehicle upon the public highways.” If a consumer lives in a state that adheres to this taxation, he or she can deduct a percentage of the tax as part of a “personal property tax.”

Charity items and deductions

Donations are another tax deduction that can substantially reduce a consumer’s tax liability. Cash, household items and clothes all can add up for the deduction. Consumers also can add appraisal fees and any other fees associated with the donation. If the item is valued greater than $500, they are required to provide an appraisal along with tax documents. Anything such as a big-ticket appliance, furniture, electronics or vehicles need to be professionally appraised to assure the value is accurate prior to filing.

Deductions for time donated to charitable organizations

For people who donate time and other efforts to charity, they also can use additional deductions. Consumers who volunteer in a local community driving a bus or car for charity can deduct transportation or mileage logs for the vehicle. They can also deduct receipts for tolls and parking. Fast cash can be found for those who donate time if they keep clear records of any payments made. The IRS requires documentation, but it can be a considerable deduction.

Cleaning bills can be deducted

Most travelers deduct airline costs and hotel for business, but not everyone knows they can deduct cleaning bills, too. Consumers should keep all receipts from Laundromats and cleaners. This is a business deduction and taxpayers can use it when the total pushes them over the 2% limit for miscellaneous deductions.

Shipping deductions

Any shipments made for work purposes can be deducted. That includes documents, baggage and displays too large to travel with consumers. These will be part of the miscellaneous deductions. Some airlines even increase the cost of travel by charging to check baggage, and this too can be added to the deduction. Consumers need to keep all receipts and have records to prove the charges were made.

Finding lesser-used deductions

Using the lesser-known deductions is a great way to find fast cash that can reduce a tax liability. The key is to keep all documentation for each deduction and be ready to produce them if requested. The above deductions also fall under the heading of miscellaneous deductions and all are “below the line.” That means that consumers can take the deductions after they have calculated their AGI, adjusted gross income. Then they have to itemize the deductions on a Schedule A. The sum of the total miscellaneous deductions has to be more than 2% of the AGI. For example, if an AGI is $80,000, all miscellaneous deductions must be more than $1,600. Though there are some regulations and rules to follow, they can be helpful if managed correctly to minimize tax liabilities.

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Cars, like people, don’t last forever. Everyone finds themselves in the scary position of sitting in front of the sales manager at the local dealership sweating out a deal. The office is hectic and there seems to be information coming from everywhere. That atmosphere is part of the strategy, to distract and pressure. As you watch people come and go you get the feeling everyone is buying a car, so you better act fast. You must resist the pressure of your environment and slow things down with some simple, but important concepts.

Do your homework first

Information is never more powerful than at a negotiating table. Remember, even at “the sticker is the price” dealerships you are negotiating. You have as much power as the other side. They want to sell the car as much as you want to buy it; in today’s economy maybe more so. Spend time comparing prices and terms at area dealerships. Get information from industry journals and web sites that show actual sales prices if available. Having the information isn’t enough, however. You must know it well, say it with confidence, and let the salesman know you know what you are talking about.

Know where you want to end up

In order to end up in the right place, you have to know what your idea of a good deal is. After you have done your research, come up with price parameters that meet your needs. At the table, don’t let the salesman switch units on you. In other words, if you are talking price don’t let the salesman switch to monthly payment. Also, don’t let him switch to a similar, but different car. You have researched one car that you want. By switching to a less familiar vehicle, he gains all the power of information. Keep working the conversation back to where you want to end up and don’t get distracted from that target.

Avoid slick and worthless add-ons

According to U.S. News and World Report Rankings and Reviews, there are several costly add-ons that add on to only the price you pay. Number one on the list is extended warranties. Most manufacturers’ warranties cover everything you need covered unless you are going to keep your car for twenty years. Moreover, you do not have to buy the warranty at that moment. It may be cheaper to contact a third party later when you decide you need the warranty.

Another unnecessary add-on is fabric and paint protection. A can of fabric protector from a local department store or auto parts store for $10 will do about the same protecting as the much more expensive dealership offering. A third costly add-on listed by U.S. News is rust proofing. Most cars sold in the U.S. are well protected against rust for decades. Being made out of more and more plastic, rust has become less and less of an issue. Once again, you can probably get any protection you want for less from a third party.

Stick to the deal at hand

The key to car negotiations and other negotiations is to keep focused on your target price and don’t budge. All of the add-ons are part of that distraction strategy that dealers employ. If they can throw new things in the mix they erode your power of information and your bargaining position. Swat those distractions away and walk away if you have to. You will feel better and find a better deal if you do.

Credit cards should be used carefully. However, if you need a car, the incentives available now could make using a credit card to buy a car feasible. (Photo: picasaweb.google.com)

If consumers are in the need of a car, this may be the right time to use credit cards to do it. Most dealerships have huge inventories and no way to get rid of them. The recession has put auto dealers in difficult positions, since most Americans are in no hurry to invest in big-ticket items. That’s great news for consumers who are looking to make an auto purchase. Potential savings on a car are substantially greater and selections are huge. Most auto dealers are making generous deals, with cash-back options and low financing rates. Cars that once were marked up are now being marketed at well below the sticker price, and sometimes even lower than the dealer’s cost.

Scott Painter, CEO of TrueCar, said, “There’s no question that you should get a screaming deal… the slump in sales resulted in discounts so steep that new cars can sometimes be less expensive than comparable used ones.” According to research done by TrueCar, last year dealers sold approximately 21 percent of 2009 models for less that dealer price. This year, that number is up to 25 percent already.

Dealerships Feeling the Pain

Adding to the auto industry climate is the rapid closings of many dealerships. In 2008 there were 1,200 closing dealers, this year GM Corp alone is planning on closing 1,200 to 1,500 franchises. These closings have helped turn the industry upside down. For example, at one time the Range Rover was a high-quality luxury vehicle. Now, there are fleets of the vehicles available with $12,000 cash-back on purchases. This isn’t the only vehicle with this kind of savings. Cadillac’s CTS sedan comes with $7,000 in incentives, while Ford’s 2010 Transit Connect vans are already coming with a $300 cash-back special.

Credit Cards: A Near Necessity

Credit cards are almost a necessity in today’s world. Many people use credit cards for everything from everyday purchases to big-ticket necessities. Although the recession has taken its toll on the credit and lending industry, companies are trying to right their wrongs and help customers make purchases. Recently, the federal government has stepped into the credit card mess, citing unscrupulous activities and demanding changes. Credit card companies understand how bad they look in the eyes of the public due to their dodgy dealings. Some companies are cutting customer’s limits, but also bringing down interest rates to make payments more manageable. They want to have customers who continue to pay on their bills, rather than just file bankruptcy or abandon the accounts.

Because of this, credit cards are slowly being used once again to fund high-ticket items like cars. With the overwhelming discounts and deals available, this is a wise choice for some consumers. Lilah Branson of Nashville, Tennessee said, “I need a car and I wasn’t planning on buying on in the recession. But then I saw the deal my credit card company offered and the deal the dealership had…combined, the deals were too good to pass up.”

Things are Slowly Picking Up

Credit cards are helping people again, slowly integrating back into everyday use. No one knows the where economy will be once the recession is completely over, but consumers are steadily getting their feet wet and wading back toward normalcy.