Write offs.........What to do after house, kids, prostitution ring???

[redgtxdi]

So, I've got the wife, kids, house and do my regular church giving, donating, charity, etc.

What more might I do if it looks like I might be makin' enough money to warranty taking action??

(I'm not making 6 figures yet, but let's just say I'm too close......and combined w/ wife's income....."Enter tax man, exit light" )

I'm ultra conservative, so I'm perfectly happy w/ just giving the gov't their due & keepin' what's mine........but I don't want to be pennywise/pound foolish.

TIA

 

[SSSnail]

Do what I do, set up a business to fail.

 

[CPA]

401k?

 

[SampSon]

401K, business expenses not covered by your company, business mileage, energy star compliant upgrades to your house.

I don't see why you would be concerned about the 100,000 mark for income (combined or not), you won't be moving up a tax bracket unless you top 131K if filing jointly.
Was that just to boast about getting close to six figures? You shrewd little frank and beans lover.. hehe

 

[MrWizzard]

Uh, why not just give more to a church? It's not like there is a max you can give, it will all be write off able.....

 

[Apex]

Private foundation.

 

[redgtxdi]

Well, we actually already give quite a bit to church already.

PLUS..........probably our biggest expense currently is sending the kiddies to private school..........(enter endless profanity here, followed by forgiveness..... )

W/ the wife's income, we're definitely goin' over $131K.

I'm not big on makin' tons of money. 'Good' money is good enough for me 'cuz at some point........(imho)........if you're makin' too much money there's always 2 guys willing to each take half of what you're makin' & layoffs are always only a breath away.

Set up my own 401K??? (I already do a SIMPLE IRA thru work + Roth on my own)

 

[thepd7]

Originally posted by: redgtxdi
Well, we actually already give quite a bit to church already.

PLUS..........probably our biggest expense currently is sending the kiddies to private school..........(enter endless profanity here, followed by forgiveness..... )

W/ the wife's income, we're definitely goin' over $131K.

I'm not big on makin' tons of money. 'Good' money is good enough for me 'cuz at some point........(imho)........if you're makin' too much money there's always 2 guys willing to each take half of what you're makin' & layoffs are always only a breath away.

Set up my own 401K??? (I already do a SIMPLE IRA thru work + Roth on my own)

You make almost 6 figures but your company doesn't have a 401k with at least some matching? That's strange.

 

[redgtxdi]

Originally posted by: thepd7

Originally posted by: redgtxdi


Set up my own 401K??? (I already do a SIMPLE IRA thru work + Roth on my own)

You make almost 6 figures but your company doesn't have a 401k with at least some matching? That's strange.

SIMPLE IRA

 

[DaveSimmons]

If you've maxed the simple IRA and Roth, what about tax-sheltered college savings for the kids?

Besides the church, a good local charity is a food bank or state-wide supplier of food banks (in WA we have Northwest Harvest). I look at food banks as helping families that are still trying to succeed, vs. the bum on the street who's given up and just wants a 40 oz.

 

[redgtxdi]

Well, I'm thinking more of "write off" as a "thing", not so much a charity........(don't get me wrong).

It's just like interest write offs. I don't wanna just look for something to throw $1.00 at so I can say I saved .25 cents in interest.

(Only real thing I can come up w/ is a 2nd house, or not really house, but maybe cabin in the mountains, shack down at the river..............heck.........VAN down by the river!!)

But, that's definitely more of a leap than I think I'm willin' to take at this point in my life.

 

[CPA]

I'm not sure where you're going with this. Once you start hitting certain income levels, your itemized deductions are topped and actually can be reduced. Additionally, now you start hitting AMT. You need to find things that reduce your income, as well.

 

[Caecus Veritas]

you could write off some stuff using the ... what was it called.. the unreimbursed or non-reimbursable business expense form (can't recall what it was called exactly). basically, anything you purchase for work (as a W-2 wage earner), such as suits, computers, etc., can be written off to a certain amount (i can't remember, but my boss used to write off 3% or 10% of total income this way). this can be flexibly abused year after year

also, as mentioned above, another way is to start up a doomed business... maybe your wife wants to start up a lemonade stand at your house...

and of course, you will absoulutely need to consult your CPA before you do any of these things.

 

[imported_weadjust]

Rental property works for me. but it can be a pain in the ass.

 

[Anghang]

cool tips in this thread, i should read more into this

 

[cjvon]

Originally posted by: SSSnail
Do what I do, set up a business to fail.

Everyone should have a business if they're in the upper tax brackets.

Also, if you're in the USA then donating crap to the Salvation Army is another great write off.

 

[ranmaniac]

See Goodfellas.

Open restaurant, max out the credit, and set fire to the place.

 

[cKGunslinger]

Why are your taxes high? I make about the same thing, have the family, 2 kids, mortgage, charity donations, etc and when it's all said and done, I usually end up paying an effective tax rate of ~6%.

 

[MyThirdEye]

Originally posted by: weadjust
Rental property works for me. but it can be a pain in the ass.

rental properties are the way to go from what my dad tells me.

 

[BATCH71]

Originally posted by: redgtxdi
I'm ultra conservative, so I'm perfectly happy w/ just giving the gov't their due & keepin' what's mine........but I don't want to be pennywise/pound foolish.

I was very similar to this until my income went WAAAY up and I got to talking to some others in my situation. IE... small business owners

My "brother in law to be" drives a lincoln navigator with 22 inch Dubs as he calls em' and a very nice sports car in the summer. He told me he averaged $70k over the last few years.

I looked at him like he was a carrot and said "How the fuck do you afford the stuff you have on that income", he replied " I have never "NEVER" paid taxes and I never will.

Then he went on to spout some BS about the little guy. It is all BS.


So... that sends a spike right through me because I paid a RIDICULOUS amount in taxes and my wright offs have to be creative of I will be bald by the time I am forty

I have a family of 5 and all the trimmings and I sure as hell don't drive that. I finally got myself a "delivery vehichle" Dodge Magnum. My accountant was not happy about it but with the price of fuel these days I had to do something and I actually use the shit out of it for business.

Thanks for paying the taxes bro, keep your vacation/business/tax wright off trips together and you will sleep nights.

Dave

 

[cjvon]

Originally posted by: BATCH71

Originally posted by: redgtxdi
I'm ultra conservative, so I'm perfectly happy w/ just giving the gov't their due & keepin' what's mine........but I don't want to be pennywise/pound foolish.

I was very similar to this until my income went WAAAY up and I got to talking to some others in my situation. IE... small business owners

My "brother in law to be" drives a lincoln navigator with 22 inch Dubs as he calls em' and a very nice sports car in the summer. He told me he averaged $70k over the last few years.

I looked at him like he was a carrot and said "How the fuck do you afford the stuff you have on that income", he replied " I have never "NEVER" paid taxes and I never will.

Then he went on to spout some BS about the little guy. It is all BS.


So... that sends a spike right through me because I paid a RIDICULOUS amount in taxes and my wright offs have to be creative of I will be bald by the time I am forty

I have a family of 5 and all the trimmings and I sure as hell don't drive that. I finally got myself a "delivery vehichle" Dodge Magnum. My accountant was not happy about it but with the price of fuel these days I had to do something and I actually use the shit out of it for business.

Thanks for paying the taxes bro, keep your vacation/business/tax wright off trips together and you will sleep nights.

Dave

I heard that there is (was?) a tax write off for businesses regarding SUVs. I know a few business owners that use this write off.

Are you saying your FBIL just flat doesn't pay taxes (doesn't file, etc.) or that he is Mr. Tax god?

 

[BATCH71]

He is a fucking loser and does not contribute, he has a 10 minute song and dance as to why he should not have to contribute.

A LOSER in my eyes.

I pay my taxes every year begrudgingly. Especially as of late. Once you get "up there" as they say, it is brutal to see the checks go to Uncle Sam.

As a kid, I remember distinctly my father pissing and moaning every year at tax time. I never understood it fully til I started making a substantial income.

Dave

 

[Engineer]

Originally posted by: BATCH71
He is a fucking loser and does not contribute, he has a 10 minute song and dance as to why he should not have to contribute.

A LOSER in my eyes.

I pay my taxes every year begrudgingly. Especially as of late. Once you get "up there" as they say, it is brutal to see the checks go to Uncle Sam.

As a kid, I remember distinctly my father pissing and moaning every year at tax time. I never understood it fully til I started making a substantial income.

Dave

QFT^infinity!

 

[cjvon]

Originally posted by: BATCH71
He is a fucking loser and does not contribute, he has a 10 minute song and dance as to why he should not have to contribute.

A LOSER in my eyes.

I pay my taxes every year begrudgingly. Especially as of late. Once you get "up there" as they say, it is brutal to see the checks go to Uncle Sam.

As a kid, I remember distinctly my father pissing and moaning every year at tax time. I never understood it fully til I started making a substantial income.

Dave

Wow on your FBIL.

What's funny is my BIL also doesn't pay taxes. He is an extreme liberal and decided that he will not support the US goverment.

The kicker is that he has a business and employees! He hasn't paid in at least 10 years, I have no idea how he has gotten away with it for so long.

Crazy sh*t.

 

[Alistar7]

Set up a home based biz that loses money, extra write off on % your mortgage. Utilize SUV write off and buy yourself a nice new ride for your new biz. Think of the things you would plan to buy yourself anyway, create biz where they can be counted as depreciable assets.

If you need any help running a biz guaranteed to lose money I heard BWB will have some free time soon, he has the experience you need. The only biz he ever ran that made a profit was the Rangers and that was partly due to govt. subsidies, what a repub....