ACKNOWLEDGMENTS xvii CHAPTER 1: Tax Insanity 1 CHAPTER 2: Is It Legal? 31 CHAPTER 3: How Our Tax System Works 37 CHAPTER 4: Exclusions--Tax-Free Money 43 A Alternatives to "Earned Income" 45 B Donative Items 59 C Investors 65 D Benefits for the Elderly 66 E Miscellaneous Individual Exclusions 73 F Schedule of Excludable Items 103 CHAPTER 5: Credits--Dollar-for-Dollar Tax Reductions 105 A Estimated Tax and Withholding Exemptions 106 B Credits 109 C Special Credits CHAPTER 6: "Above the Line" Deductions 143 A Deductions for Adjusted Gross Income 147 CHAPTER 7: "Below the Line" Deductions 231 A The Importance of Filing Status 232 B Tax Planning with Itemized Deductions 237 C Schedules of Deductions 328 CHAPTER 8: Traditional Tax Shelters 335 A Deferral and Leverage 350 B How to Analyze a Tax Shelter 390 CHAPTER 9: Super Tax Shelters 399 A Family Shifts 400 B Running Your Own Business 425 CHAPTER 10: Investment Planning to Save Taxes 463 CHAPTER 11: Last-Minute Tax Planning 505 CHAPTER 12: The Economic Growth and Tax Relief Reconciliation Act of 2001 519 CHAPTER 13: The Job Creation and Worker Assistance Act of 2002 551 CHAPTER 14: The Tax Relief Reconciliation Act of 2003 555 A Rate Reductions 556 B The Marriage Penalty 557 C The Alternative Minimum Tax 557 D Child Tax Credit 558 E Dividends/Capital Gains 558 F Deduct Your SUV--Election to Expense 560 CHAPTER 15: Income Averaging and Hurricane Tax Breaks 565 CHAPTER 16: 2006 Tax Reform 571 A The Tax Increase Prevention and Reconciliation Act of 2005 572 B The Pension Protection Act of 2006 574 C Tax Relief and Health Care Act of 2006 577 CHAPTER 17: Tax Reform, 2007-2008 581 A The Mortgage Forgiveness Debt Relief Act of 2007 582 B The New Debt Relief Act 582 C The Economic Stimulus Act of 2008 584 D The Heroes Earnings Assistance and Relief Act of 2008 588 E The Housing and Economic Recovery Act of 2008 589 CHAPTER 18: 2009 Tax Changes 593 CHAPTER 19: More Tax Changes 603 A The Hiring Incentives to Restore Employment (HIRE) Act of 2010 604 B The Patient Protection and Affordable Care Act 605 C Small Business Jobs Act of 2010 608 D The Tax Relief, Unemployment Insurance Reauthorization,and Job Creation Act of 2010 610 E American Tax Relief Act of 2012 616 CHAPTER 20: How to Avoid/Survive an IRS Audit 621 APPENDIX A: Cost Recovery/Depreciation 737 APPENDIX B: Business Use of "Listed Property" 751 APPENDIX C: Auto Leases 763 INDEX.