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1234567k
LSU Fan
Baton rouge
Member since Nov 2015
1672 posts
 Online 

Taxes. How do I minimize the pain?
I have never had a year like this before.
I just sat down and calculated how much i will owe Joe Biden, i mean Uncle Sam.
This is theft how much money the US will confiscate from me after I put my life savings at risk and managed to pick some winners this year.
Suggestions for a good CPA in the South Baton Rouge, Gonzales area?


DiamondDog
LSU Fan
Member since Nov 2019
3255 posts

re: Taxes. How do I minimize the pain?
You haven’t been calculating this along the way and setting aside funds? That’s on you my guy. I went to a CPA for our taxes last year. There was nothing hidden they found if you’re not itemizing. Now that the standard deduction increased, we aren’t itemizing. Most tax software is just as efficient as a CPA. Again though, you have to trust user inputs.


jimbeam
USA Fan
University of LSU
Member since Oct 2011
66742 posts
 Online 

re: Taxes. How do I minimize the pain?
Just buy a farm and write everything off like everyone seems to think you can do


AndyJ
Member since Jul 2008
2026 posts

re: Taxes. How do I minimize the pain?
I’m with you. I got crushed my covid, so I took a couple of extra jobs (without withholding); but I made more money at those than expected and so I owe the government a good amount, now that I finally climbed out of my financial hole.


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21
1234567k
LSU Fan
Baton rouge
Member since Nov 2015
1672 posts
 Online 

re: Taxes. How do I minimize the pain?
quote:

You haven’t been calculating this along the way and setting aside funds?


Yes i have.
But i was just just hoping there was some way to delay the theft.
Hoping i could spread the payments out over time or buy a farm and write it all off. lol


eng08
LSU Fan
Member since Jan 2013
4600 posts
 Online 

re: Taxes. How do I minimize the pain?
Numerous family owns farms abd they say that often. It doesn’t make sense to me.

Granted the one married to the cpa doesn’t exactly do that


1234567k
LSU Fan
Baton rouge
Member since Nov 2015
1672 posts
 Online 

re: Taxes. How do I minimize the pain?
I see why you majored in engineering lol


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castorinho
Oklahoma Fan
13623 posts
Member since Nov 2010
71938 posts
 Online 

re: Taxes. How do I minimize the pain?
quote:

I put my life savings at risk and managed to pick some winners this year
quote:

How do I minimize the pain?
pick some losers, too.


thatguy777
LSU Fan
br
Member since Feb 2007
2080 posts

re: Taxes. How do I minimize the pain?
I’m going to be writing a large check this year. Sucks but is what it is. Plan for it


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71
Weagle25
Auburn Fan
THE Football State.
Member since Oct 2011
39158 posts

re: Taxes. How do I minimize the pain?
The classic strategy of losing money to save on taxes


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300
TD SponsorTD Fan
USA
Member since 2001
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geauxpurple
LSU Fan
New Orleans
Member since Jul 2014
5418 posts

re: Taxes. How do I minimize the pain?
If you are talking about this year, your tax rates have not gone up yet.


southernelite
McNeese State Fan
Dallas
Member since Sep 2009
51788 posts
 Online 

re: Taxes. How do I minimize the pain?
Congrats, I’m now dumber after having read your thread.

I’m assuming you’re taking some big ST capital gains. If you are sitting on any losing positions, dump them (and don’t buy them again for 30 days or you’ll be in for even bigger surprises).

You don’t really have a lot options trying to avoid taxes after the fact. That should be done prospectively if you feel like it’s going to be a concern.


go ta hell ole miss
New York Yankees Fan
Member since Jan 2007
8869 posts

re: Taxes. How do I minimize the pain?
I think a lot of new traders are going to be shocked at how much they owe in taxes because they are trading in and out of stocks on a short term basis. I had to learn that lesson the hard way, too.


VanJoe
LSU Fan
Member since May 2020
15 posts

re: Taxes. How do I minimize the pain?
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
If you are sitting on any losing positions, dump them (and don’t buy them again for 30 days or you’ll be in for even bigger surprises).
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Could someone please elaborate on this statement? what's the surprise?


1234567k
LSU Fan
Baton rouge
Member since Nov 2015
1672 posts
 Online 

re: Taxes. How do I minimize the pain?
quote:

I’m assuming you’re taking some big ST capital gains. If you are sitting on any losing positions, dump them (and don’t buy them again for 30 days or you’ll be in for even bigger surprises).


I have dumped them. But please explain the surprises.
I still have a position in a stock that made and lost a lot of cash but it has made more than it lost. Should I sell before Dec 1st?


castorinho
Oklahoma Fan
13623 posts
Member since Nov 2010
71938 posts
 Online 

re: Taxes. How do I minimize the pain?
quote:

I still have a position in a stock that made and lost a lot of cash but it has made more than it lost. 
You might want to read up on wash sale


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50
tigersfan1989
LSU Fan
Louisiana
Member since Oct 2018
512 posts

re: Taxes. How do I minimize the pain?
Wash sale rule. If you sell for a loss and rebuy the same stock within 30 days then you can't claim the loss for tax purposes. If you want to reduce your taxable income for the year contribute to a traditional IRA, contribute to your children's 529 plan up to the taxable deduction limit. Increase your pretax 401k contributions. Short term capital gains are taxed at your current tax bracket so anything you can do to reduce your "taxable income" will help.
This post was edited on 11/21 at 9:34 am


LSURussian
LSU Fan
9 acres of paradise in Baton Rouge
Member since Feb 2005
123060 posts

re: Taxes. How do I minimize the pain?
Have you not been making quarterly estimated tax payments?


southernelite
McNeese State Fan
Dallas
Member since Sep 2009
51788 posts
 Online 

re: Taxes. How do I minimize the pain?
Yep, wash sales will bite you in the arse churning in and out of positions.


go ta hell ole miss
New York Yankees Fan
Member since Jan 2007
8869 posts

re: Taxes. How do I minimize the pain?
quote:

Could someone please elaborate on this statement? what's the surprise?


It becomes a wash sale if you purchase a stock back within 30 days. You no longer get to count the previous loss on your taxes. Worst of both worlds because if you have a gain you do have to pay taxes on the gain. Ouch!


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