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Any creative ideas for reducing tax burden?
Posted on 8/2/15 at 5:48 pm
Posted on 8/2/15 at 5:48 pm
I recently started a new job where there is tons of overtime potential. I was wondering if there are any ways to reduce my tax burden after maxing out 401k.
Quick info: married, wife's 401k will be maxed by the end of the year, new baby
Are there ways to start funds for my daughter to help? Thanks for any insight. Pretty new to having to worry about such things!
Quick info: married, wife's 401k will be maxed by the end of the year, new baby
Are there ways to start funds for my daughter to help? Thanks for any insight. Pretty new to having to worry about such things!
Posted on 8/2/15 at 5:55 pm to DzNtz
HSA, IRA, 529, real estate, start a small business...
Posted on 8/2/15 at 6:31 pm to DzNtz
Buy a farm. You can then expense all of your hobby items.
You won't be able to perpetually lose money, as the IRS would catch on, but you can make very meager profits while generating strong net cash flow.
You won't be able to perpetually lose money, as the IRS would catch on, but you can make very meager profits while generating strong net cash flow.
Posted on 8/3/15 at 7:43 am to TheHiddenFlask
Do you have any links to places to read up on this. We have a large piece of land that we do not currently produce on, but I am interested to see what we would need to produce to qualify as a farm.
Posted on 8/3/15 at 8:13 am to DzNtz
Two quick suggestions...
1)Read "Tax Free Wealth" by Tom Wheelwright. I just finished this book last week and he has some excellent tips for reducing your tax burden.
2)Make sure you have a solid tax advisor. Someone with years of experience and can understand your income situation thoroughly.
Hope it helps!
1)Read "Tax Free Wealth" by Tom Wheelwright. I just finished this book last week and he has some excellent tips for reducing your tax burden.
2)Make sure you have a solid tax advisor. Someone with years of experience and can understand your income situation thoroughly.
Hope it helps!
Posted on 8/3/15 at 8:19 am to TheHiddenFlask
quote:
You can then expense all of your hobby items.
I wouldn't suggest this.
Posted on 8/3/15 at 9:17 am to Creamer
quote:
We have a large piece of land that we do not currently produce on, but I am interested to see what we would need to produce to qualify as a farm.
Plant some pines and become a tree farm. You'll have to look up state by state what's required to qualify.
Posted on 8/3/15 at 11:13 am to DzNtz
Buy a house?
Cheat on your taxes?
Cheat on your taxes?
Posted on 8/3/15 at 12:16 pm to Iowa Golfer
Four wheeler
Guns
Ammo
Mud boat (depending on property)
Lawn mower
Vehicle (at least partially)
Insurance
Fuel
The list goes on. All are legitimate farm expenses.
Guns
Ammo
Mud boat (depending on property)
Lawn mower
Vehicle (at least partially)
Insurance
Fuel
The list goes on. All are legitimate farm expenses.
Posted on 8/3/15 at 1:16 pm to TheHiddenFlask
Farm expenses? Or hobby farm expenses? Not that it makes a large amount of difference to the IRS if you don't turn a profit about 2 out of every 5 years. Even then they can come in a say passive income, hobby related and disallow everything.
All I'm saying is that one needs to be careful expensing out properties/investments that are largely designed to reduce ordinary income tax burden.
All I'm saying is that one needs to be careful expensing out properties/investments that are largely designed to reduce ordinary income tax burden.
Posted on 8/3/15 at 1:21 pm to TheHiddenFlask
I'm on year 5 of loss after you add in depreciation, that bonus depreciation was the shite
Posted on 8/3/15 at 3:54 pm to Iowa Golfer
You obviously have to be careful, but all of the ones I mentioned in my previous case are more than likely legitimate. You need all of them for farming. Using them on the side for fun is not something they are going to be able to prove.
Posted on 8/3/15 at 4:18 pm to TheHiddenFlask
I don't play games with the Feds. I've seen too many people made an example. I worry a lot about one property I have as it always loses money. The tax code is fairly ambiguous here. But long story short, a rental, or any property or investment not making money is defacto a passive income stream sheltering ordinary income, and ordinary income taxes. It's a red flag, and one better be able to prove they were at least trying to make income.
I tend to be very conservative as you can tell from my writing naked options, and other extremely conservative money strategies.
I tend to be very conservative as you can tell from my writing naked options, and other extremely conservative money strategies.
Posted on 8/3/15 at 4:24 pm to Iowa Golfer
I'm definitely not suggesting an income shelter, I'm just suggesting an investment hat will require a lot of the things you buy anyway and don't deduct. There is a significant difference.
There is a materiality threshold with the Feds. It's kinda like going 5 over the speed limit. There are enough people going 15+ over that there is no need to waste resources on some moderately ambiguous things.
There is a materiality threshold with the Feds. It's kinda like going 5 over the speed limit. There are enough people going 15+ over that there is no need to waste resources on some moderately ambiguous things.
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