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ANSWER: In keeping with your suggestion to spend hard-earned after-tax dollars just to get around paying an income tax, you could make legitimate contributions, deductible IRA contributions, and several other deductible or tax deferred events. However, you will spend 100% to get around paying up to 28% (or at worst, 39.6% if you have over $271,000 in net taxable income). This is certainly no way to obtain a return on your invested money. Wouldn't you agree?

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Whether you're saving to buy a house, send your children to college or secure your retirement, you need a member of the Massachusetts Society of CPAs to assist you. Roger A. Kahan is an active member of the Massachusetts Society of CPAs.

POINTS paid on a home mortgage for any other reason, including refinancing of a home mortgage that was originally for the purchase of a home are deductible only over the life of the new mortgage.

ANSWER: A capital expenditure as a medical expense is a deductible item to the extent the cost of the improvement or medical equipment exceeds any increase in the value of the affected property. For instance, the installation of specialized equipment in the home or auto of a handicapped or disabled individual may give rise to a medical expense. Of course, deductibility is limited to the extent that the total medical expenses exceed 7.5% of Adjusted Gross Income.

To qualify for the deduction at all, your new job must be at least 50 miles farther from your old residence than you former job was from your old residence (up from 35 miles).

ANSWER: The normal tax statute of limitations is three years from the date of filing or the due date (whichever is later), so it make sense to keep your records at least that long (or maybe six months beyond). However, the limitation period is six years if you understate income by more than 25%, and there is NO limitation if your tax return is fraudulent or you do not file. You should also keep all records about your investments, house, stocks, bonds, retirement savings, collectibles, etc. for as long as you own them plus the above limitation period. If you make tax deferred exchanges or reinvestments, you should keep records on each property starting with the first until after you dispose of the last. Records for your own home should be kept from purchase to sale (and then the limitation period). You may need them to determine carryover or your tax basis in your holdings. This could mean holding onto records forever.

The income could also be sheltered through the use of depreciation deductions you can claim. The big reason to put real estate into a personal name vs. the corporate name, is the capital gains. While current law limits the long-term capital gain rate to 28%, or 20%, or 15%, or 10%), there is no limit to the rate on the corporate level. The maximum corporate rate is 34%.

The same rule applies when you take a business guest to a sporting event of show. Have a business discussion with your guest before or after the event and keep a record of it.