Need some help from the board. What are you all doing to limit the tax burden of being successful and not having a BIG write off to bring that income down. Is everyone on a 10-99? I am on a W-2 and so is my wife, together we brought home a little less then 300k and I am searching for ways to get this down. I just don't want to pay anymore then I already have, the hell with getting some back. When we sold our home in 2006, I knew we would pay from a tax standpoint and so far it has worked out being out of the market (both), but it is getting close to trigger time. Any ideas out there?
Ouch! Taxes: What to do?
- Thread starter clark_IHB
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usctrojanman29_IHB
New member
[quote author="treknut" date=1231660919]Need some help from the board. What are you all doing to limit the tax burden of being successful and not having a BIG write off to bring that income down. Is everyone on a 10-99? I am on a W-2 and so is my wife, together we brought home a little less then 300k and I am searching for ways to get this down. I just don't want to pay anymore then I already have, the hell with getting some back. When we sold our home in 2006, I knew we would pay from a tax standpoint and so far it has worked out being out of the market (both), but it is getting close to trigger time. Any ideas out there?</blockquote>
1. Maximize 401k contributions
2. Charitable contributions
3. Buy a primary residence
4. Buy a rental property
5. Have some kids
6. Make less money
1. Maximize 401k contributions
2. Charitable contributions
3. Buy a primary residence
4. Buy a rental property
5. Have some kids
6. Make less money
stepping_up_IHB
New member
Rental property won't help at that income level.... you can't deduct losses after $150K unless RE is your business.
no_vaseline_IHB
New member
You have a income that puts you in the top 1% of the USA, and maybe the world.
I am envious of your problem.
I am envious of your problem.
OC_Boston_Bay_IHB
New member
[quote author="usctrojanman29" date=1231671310][quote author="treknut" date=1231660919]Need some help from the board. What are you all doing to limit the tax burden of being successful and not having a BIG write off to bring that income down. Is everyone on a 10-99? I am on a W-2 and so is my wife, together we brought home a little less then 300k and I am searching for ways to get this down. I just don't want to pay anymore then I already have, the hell with getting some back. When we sold our home in 2006, I knew we would pay from a tax standpoint and so far it has worked out being out of the market (both), but it is getting close to trigger time. Any ideas out there?</blockquote>
1. Maximize 401k contributions
2. Charitable contributions
3. Buy a primary residence
4. Buy a rental property
5. Have some kids
6. Make less money</blockquote>
7. attain a promotion to qualify for your company's exec deferred comp plan. Then you can usually defer most the vast majority of your income. Of course these are on your company's balance sheet , so they're forfeited in the case of BK. I recall feeling schadenfreude reading about how much the New Cent execs lost in theirs.
1. Maximize 401k contributions
2. Charitable contributions
3. Buy a primary residence
4. Buy a rental property
5. Have some kids
6. Make less money</blockquote>
7. attain a promotion to qualify for your company's exec deferred comp plan. Then you can usually defer most the vast majority of your income. Of course these are on your company's balance sheet , so they're forfeited in the case of BK. I recall feeling schadenfreude reading about how much the New Cent execs lost in theirs.
O
Oscar_IHB
Guest
Here's an idea: pay your taxes rather than trying to screw over the rest of the country in your drive to hoard even more wealth than you already have.
You and the guy trying to figure out how to get his wife undeserved unemployment benefits should get together, compare notes, and then go f**k yourselves. It's exactly that kind of "me first" thinking that put this country in this position in the first place. You should be ashamed of yourself.
You and the guy trying to figure out how to get his wife undeserved unemployment benefits should get together, compare notes, and then go f**k yourselves. It's exactly that kind of "me first" thinking that put this country in this position in the first place. You should be ashamed of yourself.
irvinesinglemom_IHB
New member
[quote author="Oscar" date=1231738156]Here's an idea: pay your taxes rather than trying to screw over the rest of the country in your drive to hoard even more wealth than you already have.
You and the guy trying to figure out how to get his wife undeserved unemployment benefits should get together, compare notes, and then go f**k yourselves. It's exactly that kind of "me first" thinking that put this country in this position in the first place. You should be ashamed of yourself.</blockquote>
Jeez Oscar, would you please chill out? I didn't hear this newbie tell us he was looking for a way to pay less than he truly owed; I didn't hear him say he wanted to find a way to scam the system to pay no taxes at all. I just heard one half of a professional couple (if I were married, my own household income would likely be close to his, hopefully) asking for suggestions on how to make sure he was not overpaying. No crime in my view and not even morally questionable.
Calm down please. If you're mad at the world, go out and hit a ball or work up a sweat on a bike or something.
You and the guy trying to figure out how to get his wife undeserved unemployment benefits should get together, compare notes, and then go f**k yourselves. It's exactly that kind of "me first" thinking that put this country in this position in the first place. You should be ashamed of yourself.</blockquote>
Jeez Oscar, would you please chill out? I didn't hear this newbie tell us he was looking for a way to pay less than he truly owed; I didn't hear him say he wanted to find a way to scam the system to pay no taxes at all. I just heard one half of a professional couple (if I were married, my own household income would likely be close to his, hopefully) asking for suggestions on how to make sure he was not overpaying. No crime in my view and not even morally questionable.
Calm down please. If you're mad at the world, go out and hit a ball or work up a sweat on a bike or something.
O
Oscar_IHB
Guest
No, he is asking for ways to reduce his tax payment, specifically "not paying anymore than I already have". He's not looking for help in claiming deductions he qualifies for, he is asking for help in finding ways to avoid paying taxes in the future.
If I seem angry, I blame it on the reality of trillion dollar deficits. I'm sure I'll get over it soon.
If I seem angry, I blame it on the reality of trillion dollar deficits. I'm sure I'll get over it soon.
irvinesinglemom_IHB
New member
[quote author="Oscar" date=1231743133]No, he is asking for ways to reduce his tax payment, specifically "not paying anymore than I already have". He's not looking for help in claiming deductions he qualifies for, he is asking for help in finding ways to avoid paying taxes in the future.
If I seem angry, I blame it on the reality of trillion dollar deficits. I'm sure I'll get over it soon.</blockquote>
Hmmm. I think that's your interpretation of his words, and I think you're misinterpreting. If your interpretation is correct, then I second every one of your assertions! But I think he really is just looking for some advice about minimizing his tax burden, not dodging it.
Clarification, please, Trekker?
If I seem angry, I blame it on the reality of trillion dollar deficits. I'm sure I'll get over it soon.</blockquote>
Hmmm. I think that's your interpretation of his words, and I think you're misinterpreting. If your interpretation is correct, then I second every one of your assertions! But I think he really is just looking for some advice about minimizing his tax burden, not dodging it.
Clarification, please, Trekker?
Trooper_IHB
New member
Ditto ISM. To me it just sounded like he wanted suggestions for deductions. Oscar...don't be such a grouch. 
No_Such_Reality_IHB
New member
We need to limit deductions. The system is being gamed and it results in higher taxes for all.
No_Such_Reality_IHB
New member
[quote author="Oscar" date=1231743133]No, he is asking for ways to reduce his tax payment, specifically "not paying anymore than I already have". He's not looking for help in claiming deductions he qualifies for, he is asking for help in finding ways to avoid paying taxes in the future.
If I seem angry, I blame it on the reality of trillion dollar deficits. I'm sure I'll get over it soon.</blockquote>
No, you won't. Your taxes are going to get worse.
In the end, the thing we need is the thing we'll never get, a very simple tax structure that prevents the hiding of income, the paper losses and all the other BS that allows people to live high and show little or no income.
If I seem angry, I blame it on the reality of trillion dollar deficits. I'm sure I'll get over it soon.</blockquote>
No, you won't. Your taxes are going to get worse.
In the end, the thing we need is the thing we'll never get, a very simple tax structure that prevents the hiding of income, the paper losses and all the other BS that allows people to live high and show little or no income.
qwerty_IHB
New member
Oscar - why dont you go get a good paying job so you can understand treknut's situation. Im sure he and his wife have worked hard to achieve that income level. He has a right to have that "me first" attitude. It sucks seeing such a large chunk of your paycheck subsidizing @@sholes like you. He was just asking for deductions to legally reduce his income taxes. Nothing wrong with that.
You should be mad at all the irvine home owners who incorrectly deduct the mello-roos fees on their tax returns, which reduces their tax burden - that is probably most of irvine.
You should be mad at all the irvine home owners who incorrectly deduct the mello-roos fees on their tax returns, which reduces their tax burden - that is probably most of irvine.
irvinesinglemom_IHB
New member
[quote author="Trooper" date=1231760123]Ditto ISM. To me it just sounded like he wanted suggestions for deductions. Oscar...don't be such a grouch. </blockquote>
Oh, the Sesame Street reference...that's funny Trooper!
My kid doesn't like Sesame Street. Never did. Star Wars, however...can you spell O-B-S-E-S-S-E-D? It's amazing how well they have kept marketing this francise for so many decades to each new generation of kids. I don't see it ever ending! We went to Disneyland on Friday and I bought him a ridiculously overpriced Jedi Knight costume. He walked around in it, feet 6 inches off the ground. Got lots of attention, with everybody calling out to him "Hey Luke" and Hey there little Jedi!". It was tons of fun and worth every penny. Why should little girls in princess outfits get all the fun?!
</blockquote>Oh, the Sesame Street reference...that's funny Trooper!
My kid doesn't like Sesame Street. Never did. Star Wars, however...can you spell O-B-S-E-S-S-E-D? It's amazing how well they have kept marketing this francise for so many decades to each new generation of kids. I don't see it ever ending! We went to Disneyland on Friday and I bought him a ridiculously overpriced Jedi Knight costume. He walked around in it, feet 6 inches off the ground. Got lots of attention, with everybody calling out to him "Hey Luke" and Hey there little Jedi!". It was tons of fun and worth every penny. Why should little girls in princess outfits get all the fun?!
O
Oscar_IHB
Guest
[quote author="qwerty" date=1231764350]Oscar - why dont you go get a good paying job so you can understand treknut's situation. Im sure he and his wife have worked hard to achieve that income level. He has a right to have that "me first" attitude. It sucks seeing such a large chunk of your paycheck subsidizing @@sholes like you. He was just asking for deductions to legally reduce his income taxes. Nothing wrong with that.
You should be mad at all the irvine home owners who incorrectly deduct the mello-roos fees on their tax returns, which reduces their tax burden - that is probably most of irvine.</blockquote>
I have a great paying job. I'm in the same bracket as the OP and I know exactly what it takes to get here. Don't make assumptions and don't call me names.
As for who I should be mad at, I'll keep my own council on that, thanks. But I assure you that I am just as pissed at the people who look for ways to avoid paying taxes as I am at those who scream for more government spending without balancing the budget. This attitude of "me first" is really telling everyone else to go screw themselves. It means you want all the rewards of success (money) and none of the responsibilities (taxes) and the people who have that "me first" attittude are no different than those who enjoy the sex but abandon the kid, the people who vote for liberal politicians and then complain about their personal tax rates, or the people that complain about traffic while sitting alone in their SUV.
And it's about time we started saying enough is enough.
You should be mad at all the irvine home owners who incorrectly deduct the mello-roos fees on their tax returns, which reduces their tax burden - that is probably most of irvine.</blockquote>
I have a great paying job. I'm in the same bracket as the OP and I know exactly what it takes to get here. Don't make assumptions and don't call me names.
As for who I should be mad at, I'll keep my own council on that, thanks. But I assure you that I am just as pissed at the people who look for ways to avoid paying taxes as I am at those who scream for more government spending without balancing the budget. This attitude of "me first" is really telling everyone else to go screw themselves. It means you want all the rewards of success (money) and none of the responsibilities (taxes) and the people who have that "me first" attittude are no different than those who enjoy the sex but abandon the kid, the people who vote for liberal politicians and then complain about their personal tax rates, or the people that complain about traffic while sitting alone in their SUV.
And it's about time we started saying enough is enough.
awgee_IHB
New member
The idea that high income earners have ways to avoid taxes is just plain wrong. Deductions are limited not only by AMT, but also high income thresholds. The high income earners in this country pay the overwhelming majority of taxes.
There is a world of difference between tax avoidance and tax evasion. One is legal and the other is illegal.
Ensuring that one maximizes one's deductions is both legal and moral. And one maximizes one's deductions by preparing one's return accurately and correctly.
There was nothing in the original post to suggest the poster was asking for advice on how to evade taxes. Tax avoidance is attained through planning. That is why I asked the posted if they were asking about 2008 or 2009.
If 2008, then is nothing to be done except fill out one's return accurately and correctly. It is a fallacy that somehow high income earners find loopholes and legally manipulate the numbers on their returns to enlarge their deductions or decrease their tax liability.
And, one may plan for 2009 to reduce one's tax liability. Sometimes high income earners may defer tax liability, and may defer it until their normal income is less and their marginal tax rate has decreased, and this type of tax planning is legal, moral, and prudent.
There are no loopholes. There are knowledgeable tax professionals who know how to plan for decreased tax liability.
There is a world of difference between tax avoidance and tax evasion. One is legal and the other is illegal.
Ensuring that one maximizes one's deductions is both legal and moral. And one maximizes one's deductions by preparing one's return accurately and correctly.
There was nothing in the original post to suggest the poster was asking for advice on how to evade taxes. Tax avoidance is attained through planning. That is why I asked the posted if they were asking about 2008 or 2009.
If 2008, then is nothing to be done except fill out one's return accurately and correctly. It is a fallacy that somehow high income earners find loopholes and legally manipulate the numbers on their returns to enlarge their deductions or decrease their tax liability.
And, one may plan for 2009 to reduce one's tax liability. Sometimes high income earners may defer tax liability, and may defer it until their normal income is less and their marginal tax rate has decreased, and this type of tax planning is legal, moral, and prudent.
There are no loopholes. There are knowledgeable tax professionals who know how to plan for decreased tax liability.
irvine_home_owner_IHB
New member
I dunno... if you're making just shy of $300k a year, I think you can afford to hire a tax accountant to help you legally reduce your taxes.
Trying to get free advice from a forum full of strangers seems a bit of a stretch... and I know from experience that the Internet is full of false assumptions and misinterpretations.
There are probably some people here who wish they had a job... much less have a 6-figure salary.
Trying to get free advice from a forum full of strangers seems a bit of a stretch... and I know from experience that the Internet is full of false assumptions and misinterpretations.
There are probably some people here who wish they had a job... much less have a 6-figure salary.
No_Such_Reality_IHB
New member
[quote author="awgee" date=1231771343]There is a world of difference between tax avoidance and tax evasion. One is legal and the other is illegal.</blockquote>
Incorporating in an offshore tax haven is legal to avoid the taxes is technically legal.
Is it an amoral dodging when the reality is the incorporated lives here, works here and otherwise really is established here but is using the technically legal structure to avoid?
Incorporating in an offshore tax haven is legal to avoid the taxes is technically legal.
Is it an amoral dodging when the reality is the incorporated lives here, works here and otherwise really is established here but is using the technically legal structure to avoid?
[quote author="No_Such_Reality" date=1231850268][quote author="awgee" date=1231771343]There is a world of difference between tax avoidance and tax evasion. One is legal and the other is illegal.</blockquote>
Incorporating in an offshore tax haven is legal to avoid the taxes is technically legal.
Is it an amoral dodging when the reality is the incorporated lives here, works here and otherwise really is established here but is using the technically legal structure to avoid?</blockquote>
A corporation is a separate legal entity, so what does your place of residence have to do with anything?
Incorporating in an offshore tax haven is legal to avoid the taxes is technically legal.
Is it an amoral dodging when the reality is the incorporated lives here, works here and otherwise really is established here but is using the technically legal structure to avoid?</blockquote>
A corporation is a separate legal entity, so what does your place of residence have to do with anything?