When most people bring up tax deductions in casual settings it's pretty obvious pretty quickly that they don't really know what a tax deduction is. And the odds quickly approach 1 if they use the phrase "write-off."
It seems to be the common understanding among many that a "write off" of a business expense like a laptop or something means you get that thing for free.
I wonder if this is the result of most people taking the standard deduction instead of itemizing at tax time.
I think it's the result of them probably getting paid a salary out of their business, and the laptop being purchased in December or January makes no difference to their actual take home pay (assuming they're not distributing 100% of profit).
But that being said, a 15-30% discount because you used a different credit card to buy it is a pretty good incentive.
Yes. I know lots of folks living in cheap Midwestern housing who think they're getting a great deal on the mortgage interest rate deduction, but who almost certainly have deductions at or below the standard amount.
I'd venture that a lot of people are typing all this info into their tax software, which summarily throws it all away without them really understanding that that's what's happening.
Regular folks just do not get this stuff and it's silly that we have such a complicated system.
