Dangerous Bloggers

Who is the most dangerous blogger on the internet today? This is a serious question. Think about it for a while.

What characteristics would cause a blogger to become dangerous? To start, the blogger would need an audience to be dangerous. A blog with a modest, but fast growing, audience would have an increasing influence in our society.

Another characteristic might entail new ideas masked as truth. Imagine a blogger telling a story with a broad concept that intentionally excludes many of the facts. A grain of knowledge is a powerful tool to expand learning or it can be a recipe for disaster on a colossal scale.

Have you thought of a few bloggers who might be dangerous? Can you narrow it down to one?

I’ll tell you who I think is the most dangerous blogger on the internet right now. You’re reading him.

That needs some explanation.

The Facts

Things have been pretty darn good around these parts lately. The Wealthy Accountant received nominations in two categories for the Plutus Awards and traffic is climbing for a variety of reasons, including the nominations.

Traffic is over 80,000 in the last month with October looking to break into six figures. Blog revenues are climbing, too. Certain advertisers have turned me into a project. They want some real estate on this blog. Don’t expect more ads, however. I’ve included enough ad space to break up the page and flesh out the design. I love revenue, but user experience is more important than ads by a mile.

TWA is experiencing more traffic referrals. Other bloggers find my work acceptable periodically so they include a mention on their blog or in social media. It gives me the warm and fuzzy feeling so I always re-tweet and share mentions when I see them.

Interviews are more common now, too. People seem to think I have something important to say because my traffic is climbing. It’s a self-fulfilling feedback loop I have no qualms with. Traffic strokes my fragile ego. There is a satisfying feeling connected to acknowledgement.

Every blog appeals to a certain demographic. TWA has an inordinate number of tax professionals (and government officials) reading on a regular basis. That is why I needed to write this post.

Danger Zone

Periodically, traffic spikes to 100 visitors here at the same time. It makes me nervous. This is still small traffic compared to most popular blogs, but it exposes a risk. What if these people actually believe what I wrote? Worse, what the heck did I write a year and a half ago? The risk prolific writers face is not remembering what they published the day before yesterday. It could be age, but it’s not! The sheer volume requires readers to refresh my memory when they ask about my previous work. Feels funny when I get schooled by my previous efforts.

Now we get to the part that makes me dangerous. What I write here is wrong 100% of the time! Sorry.

I better qualify the last statement before I’m hauled away.

When I write on TWA I avoid dry and stale tax explanations. My goal is to write high concept while knowing the details will require working out later.

Take a simple example. If I say donations to a qualified charity are deductible and move on I only told part of the story. On the surface I am right. Pull back the sheets and issues start to crop up.

Charitable donations are deductible if you itemize. Okay, that is still a lie. If your income is high, your itemized deductions might be limited so the deduction is partial.

I’m still a liar! If you retired and have a side gig with no profit and used a Roth IRA to fund your living expenses, you can’t deduct the charitable contribution even if you itemize because you can only deduct 50% of your AGI for cash charitable contributions. The balance is carried over for up to five years where it is lost afterwards.

And I’m still a sniveling liar! What if the alternative minimum tax interferes?

After all the qualifying of my first statement—charitable contributions are deductible—I am still pumping BS. Sitting here writing I can’t think of anything else that might affect my original statement. It doesn’t mean there aren’t any more out there.

As soon as I open my yap on a tax issue I’m a bigger liar than any fisherman who wet a line. And I know it every time I tap the keyboard.

In the tax profession we constantly say “facts and circumstances”. There is no way I can possibly cover every eventuality. I either write dry, staid tax articles where I cover a very, very narrow topic or I write something normal human beings want to read. I choose the later.

Helping the largest number of people requires I write something they want to read.

The Greatest Danger

Tax professionals hound me incessantly. They inform me how wrong I am. I get it.

When fleshing out a concept I intentionally choose what to include. You read that right. I intentionally get it wrong! If I didn’t, I would be bogged down in 30,000 word posts attempting to cover every possible option. Nobody would read it, including your favorite accountant.

Over the next six months I will publish some very complex tax concepts. The first one and a half years of this blog was tame. Now we will start pealing back the tax code in a serious way. Dropping 50 grand into a retirement account is a child’s game from now on. Now we will hyper-charge the wealth building and tax planning process.

And everything I say will be wrong . . . for you. In each post where I expose a massive tax concept I will be thinking of how it applies to a client or a small number of clients. Your facts and circumstances will be different and so the rules for you will be different.

Another example: A recent consulting session led a client to contact his attorney to set up a NIMCRUT on my advice. He cc’d me in on the email. I wrote back a few questions and upon reply came to the conclusion he would be better served with a donor-advised fund. This is a simpler and cheaper solution to accomplish his needs. Once again, it all hinged on facts and circumstances. And we didn’t even debate all the other pitfalls of charitable donations discussed above!

When I throw out ideas it is a starting point. Complex tax strategies completely fleshed out for every possibility is a book, not a blog post.

Tax professionals should know better, yet sometimes don’t. Shame on you. When I provide a concept you need to dig further. Sometimes I include links when I find web pages that add value to the argument.

You, kind readers, are my greatest concern. Some of you are very versed in the nuances of the tax code; others, not so much. Okay, I am not lying when I publish here, but I may as well be if I can’t communicate an adequate message. The concepts I outline work. Your facts and circumstances determine the value the concept has for you. Also remember, you can change the facts and circumstances sometimes to your benefit.

I understand the difficulty in finding qualified tax professionals to help you with this stuff. That is why I encourage tax pros to share their contact information in the forum. Readers, check the forum often. Post questions so accountants can help you and even offer their services.

Final Warning

It’s time for me to get back to work on the aforementioned concepts. The decisions are hard. Your favorite accountant is far from perfect. If you think I said something wrong, do NOT hesitate to leave a comment or contact me. I find real errors periodically and fix them as soon as they are discovered.

The tax code is too large and complex for my work to always be perfect. Tax professionals need to test me constantly for this to benefit the largest number of people, including you, my friendly tax pros.

Finally, everything you read here should be taken like a Margarita. With a grain of salt.

There seems to be an inordinate amount of interest in my writing notes. Periodically I will includes my working notes that spur the writing of a post for your entertainment. Sometimes these notes have been around a while before I write the post. The final product can sometimes be radically different than intended. Writing works that way at times. My working notes are unedited; I will not correct errors in working notes to preserve the process as it was originally produced. Enjoy.

 

Things have been going pretty good around here. Traffic is up and TWA has been nominated for a Plutus Award in two categories.

My head should be swelling, but instead I am nervous. When I watch the live traffic on Google Analytic I am nervous when 50 or 100 people are consuming my work all at the same time. WHAT IF THEY ACTUALLY BELIEVE WHAT I WROTE?!?!

Blogging tax advice is dangerous and I know it. I make intentional errors for the sake of fleshing out a concept; I incl ideas few will benefit from but have to incl it. Posts need to stay reasonable in length. 20,000 words of taxspeak is sure to snuff out a few lives of readers. Three, maybe four, tax pros might stick around for the punch line, but I’m not holding my breath.

Tax charitable deductions as an example: to a qualified charity they are deductible. Right? No! First you must itemize, not make too much and phase out, have income because only 50% of cash donations count and AMT might be an issue. One simple remark is technically correct, yet fundamentally wrong and I know it when I write. Facts and circumstances change the answer.

So I tell readers donations to a qualified charities are deductible and hope for the best.

It’s the risk a blogger takes daily.

Considering the risks this blogger takes with the public it is a wonder he hasn’t been committed.