Hey Veeky Forums. How do i reduce my taxable income if I make more than $100k/year? I've recently fallen into a better career and AFAIK, you can't deduct an IRA if you make more than $70k. So, first world problems, I know, but is there anything I can put money into that defers from my taxable income? I'm going to get raped in the ass on taxes this year, I already sold some loser stocks to make the $3000 stock loss deduction but it won't be enough.
Hey Veeky Forums
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I thought it was that you can't have both an IRA and a 401k if you're over that threshold
Nothing else you can do.
Take it offshore dumbass just like Apple.
being married only lessens the tax bursen if you married a leech who makes very little
if you can.. register yourself as a business entity.. deduct taxes from "business expenses" so you report a smaller profit margin.. This can be done legally if you save all your invoices from expenses in-case you get audited.. you can live on the hog, while having a tiny NET income
Or, you know, get a wife that knows her place and knows that work is for men
401k. If you're under like $130k annual and your employer offers one, that is. You can dump $18500 per year in there pre tax.
Also, an HSA allows you to make pre tax contributions to an account specifically reserved for healthcare expenses. You only qualify if you're on a high deductible plan tho, iirc. I think you can contribute like $4k a year max.
Finally, an IRA allows you to contribute up to $5500 tax free; the other option is the Roth IRA, which taxes on contributions but not disbursal.
My employer offers a 401k, and I contribute 10% to it so it nixes the tax benefit of an IRA.
I imagine I'm fucked, but any loophole I can grab I'm wiling to take. I'll be sure to donate clothing and other shit to run up those deductions but, again, won't be enough.
HSA/MSA is good. College savings plan if you have kids.
If you were self-employed, there's lots of additional options, but you cant fake it ( isa moron).
Hopefully your investments aren't limited to your 401k. Anyone with that salary should have a taxable investment account too. Be sure you are investing that money in a tax efficient manner. Index funds are inherently tax efficient, and may shops (e.g., Vanguard) offer tax managed funds that are even better.
If you made more we could discuss things like donor advised trusts and foreign investment credits, but you aren't there yet.
Here's what you do
start a 501(c)(3) nonprofit
disassociate yourself with it
calculate how much needs to be taken out of each check to total up to $30,000
earmark said cash to donate to the nonprofit
the donation should be written TO you FOR the nonprofit to hold onto
the nonprofit doesn't need to report this financially since the cash doesn't necessarily belong to it but is merely operating as a holding for it
have the nonprofit give you back your $30,000 in donations (remember it's to yourself)
Congratulations, you just got your money back tax free and there's nothing the IRS can do about it. Matter of fact, it's legal.
disassociate yourself with it
have the nonprofit give you back your $30,000
Can't do both, dumbass. If your in control of the bank account to "give back" the money, then you're associated with the charity and your donation is invalid. And if your not in control of the bank accounts, then whoever is in control can't give you anything or they'll be committing fraud (along with you). Welcome to pound-me-in-the-ass prison.
Fucking kids. Go back to /b/.
Be a founder
Appoint people you know to preside on the board
Start another nonprofit that you run but it can be anonymous
Use an "agency letter" instructing the first nonprofit to give it to the other nonprofit then give it to you
Except it's entirely legal. If you're telling the nonprofit what to do with it, they don't have to account for it financially. The IRS even asserted this. Look it up. Do your fucking homework you colossal faggot. Get gud.
pump money into physical gold bullion
bury it in your backyard
gubmint can't touch shit since they can't find it
You're so fucking retarded you've lost the right to oxygen. kys, please.
not even bothering to do any research
calling others retarded
being this autistic
Your loss. Have fun getting raped by Uncle Sam while I keep my loot. Do the future a favor and end your lineage.
And welcome to the shady world of money laundering. Except your version isn't very shady, it's literally 2 steps and any auditor would see through it like a plate glass window.
the fact that you are essentially taxed for not being married
There is no justification for such.
C'mon man. Anyone stupid enough to think your fraud scheme would work -- let alone is "legal" -- clearly has no money at all. Why not admit that you're a poser poorfag? We can't hold a lower opinion of you than we already have.
IT'S FUCKING LEGAL REEEEEE
It's not a fucking scam because you're issuing an agency letter instructing the nonprofit how to disperse the fucking funds. They don't own the money nor have say over the goddamn way it's handled because you're explicitly instructing them what to do with it. You don't just drop money off and say see ya--the fuck? Clearly you've never operated a nonprofit or donated money, so it's evident that YOU'RE the poorfag.
open a side business that has "losses" every year and claim that on income tax
FURTHERMORE, the nonprofit does NOT have to disclose who the donation came from either. Just look it up, you can thank me later when you're reaping sweet untaxed money that you've earned.
being this wrong
being this triggered
being this autistic
Extra credit for the triple. You've graduated to full-blown retard.
Talk to a good accountant, there are a lot of little tricks.
Easiest one I know of is to claim a lot of charitable donations.
You could give some old couches and electronics to good will but really hype the fuck out of their value and claim you gave like $5,000 in stuff to charity.
Also, not sure what your job is, but if you are self employed you could take a portion of your income in cash and had some that way.
Yeah I think a friend of my friend set up a non-profit to do some fucky things with his money and he is now being investigated by the feds.
Alright, you're b8. You had me going there.
Get a larger mortgage - deduct the interest portion
Buy a 2nd house and leave it empty - deduct the interest portion
Deduct 2 x property tax
FWIW I don't get why you feel you're going to get 'raped' - I've paid as much as $40k tax in a year and I assure you I didn't even notice it was 'taken' from me.
$100k per year is modest income, you'll only end up paying under $20k tax so you're walking away with about $80k... but once you factor in property tax, mortgage interest etc. you're probably only paying $10k before you even pay a good accountant to do other tricks
He probably wasn't doing it correctly and literally just laundering money through it. By not keeping record of the agency letters sent by himself to the nonprofit, that's grounds for investigation. You can't just "surprise" money yourself; you need a letter outlining what the nonprofit is to do with the funds. The letter allows the nonprofit to omit the received funds from their financials since it's not their money to begin with.
How the hell do you guys think super PACs work?
Unless those houses make money, that's really stupid. Paying interest just to get a tax deduction is not the way to become well-off.
It's a free loan. Not 'really stupid'. He's already 'well off' earning over $100k and he didn't mention get-rich-quick as the goal. He wants to reduce tax paid. Your solution doesn't help because you didn't fucking offer one.
I would help you OP, but you are doing so much better than me it seems a waste. Besides us accountants need to help each other out. So go pay an accountant a lot of money to help you!
How does one find a good accountant? Help me find one of your fellows.
tax evasion is a crime user
just quit your job, that way you don't have to pay any taxes
This is how retarded you sound right now.
It's only tax evasion if its illegal.
marriage increases chances of you having kids
if the population growth isnt at replacement rate or higher than the economy will suffer
Roth IRA or 401k.
These are both prior to taxes.
The cuckery is real
Intentionally make bad investments in the market. I think you can write off like $3k in losses in the US. Besides that, look for tax shelters.
donate half your income to it
use it to travel the world and other misc expenses under the guise of 'charity'
Become an LLC desu, if your employer will work with that.
Sure is Summer in here ....
Roth IRA or 401k.
These are both prior to taxes.
Roth is pre tax.
Intentionally make bad investments in the market
Dumb. Intentionally seeking losses is always a losing monetary strategy.
Illegal and impractical. You faggots with your fake charity schemes need to grow up. The IRS caught on to this 50 years ago.
Become an LLC desu
And exactly how does that reduce your taxes, moron? You do know that an LLC is a pass-through entity, right? And if you have legitimate business-related deductions, you don't need an LLC to take them. So other than paying additional fees, taking more time, and adding 2-3 additional tax returns to your burden, how does your suggestion help?
You can do legitimate business-related deductions without an LLC? Like if I buy a car for work, could I write it off? Or if I take a client out for dinner? Or business travel expenses?
You can do legitimate business-related deductions without an LLC?
Yes, of course. They'd have to be legitimate, though. Your car likely would never ever qualify, though some of your miles might. Same for other unreimbursed business expenses, such as client meals and travel expenses.