Pet Peeve – When People Say “I need more write-offs!”

This just doesn’t make any financial sense. Why do you need more write-offs? To me, this is just a fancy way of saying that you need to find things to buy that you don’t really need that happen to be tax-deductible.

It’s like when one of my good friends told me I need to buy a bigger house with a larger mortgage for the larger write-off. Let’s say my mortgage write off now is $1000 per month (basically saving me $300 per month on taxes). She thought I should get a $3000 per month mortgage so I’d have a bigger write-off. Ok, so I’d save another $600 per month on taxes but spend an extra $2000, essentially still spending $1400 MORE per month!

Or another friend of mine who bought a new computer for business even though her old one was working fine because she NEEDED the write-off! Instead of saving $500 on taxes she could have had $2000 in her pocket.

Yes, my numbers are simplistic. Yes, you should take all the write-offs the government allows. But you should NEVER buy something simply because it’s a write-off! It makes no financial sense.

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One thought on “Pet Peeve – When People Say “I need more write-offs!”

  1. smallivy says:

    I’ll gladly pay the taxes on any money people chose to give me. Instead of keeping a home mortgage and paying $10,000 in interest each year for a $2500 tax write-off, just give me $10,000 and I’ll pay $2500 of your taxes.

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