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  1. #1
    Full Member Code Monkey's Avatar
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    I earn too much...
    Yet another year in which I have earned too much money and have to pay TOO MUCH in taxes... Anyone have suggestions on ways to reduce a LOT of personal income. I already do the basics, like maxing out retirement accounts, hire a spouse and max out her retirement accounts, etc etc...

    I'm talking about shielding a LOT of money. Like, can I go buy another house, use it as an office, and somehow have a big write-off?

    Someone give me some creative ideas to go research..

    Thanks

  2. #2
    Affiliate/AM Moonlighter dflsports's Avatar
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    You could share the wealth, hire some help, I know someone looking for some extra work

  3. #3
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  4. #4
    Full Member 1stAngel's Avatar
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    Employ me. I would take some of the extra money you need to get rid of by buying myself a nice home. I would then take a little more for my first holiday in over 10 years.

    Yes, hire me and see some money disappear

  5. #5
    Visual Artist & ABW Ambassador lostdeviant's Avatar
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    Any good accountant should be able to help you. At least here accountants also do tax preparation.

  6. #6
    Merchant & ABW Ambassador
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    Do you have any accountant. I am sure that a session or 2 with them and they can come up with some creative method to help move the nuts around.

  7. #7
    ABW Ambassador affninja's Avatar
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    Nice work, Code Monkey. All things considered, earning too much isn't a bad problem to have!

  8. #8
    Affiliate Manager Howard Gottlieb's Avatar
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    Create a Defined Benefit retirement plan.
    I would rather live my life as if there is a God and die
    to find out there isn't, than live my life as if there
    isn't and die to find out there is.

  9. #9
    Full Member Greywolf's Avatar
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    Top tax deductions for small businesses

    http://www.nolo.com/article.cfm/obje...1/277/235/ART/

    I particularlly liked the "entertainment expenses", sounds like you need to have more partys where you invite all of us, and then write it off.

  10. #10
    Advocate mellie's Avatar
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    Very easy, give to charity. There are a lot of worthy causes that are suffering. More admirable than throwing it away or trying to avoid taxes by other means.
    That or relocate to NY.
    Melanie
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  11. #11
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    Quote Originally Posted by mellie
    Very easy, give to charity. There are a lot of worthy causes that are suffering. More admirable than throwing it away or trying to avoid taxes by other means.
    That or relocate to NY.
    You said pretty much what I wanted to say. My post was deleted because I said it with a little less tact.

    Perfect answer

  12. #12
    Beachy Bill's Avatar
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    A "best investment" may indeed be a CPA, tax-savvy accountant. Is sounds as though you may need a longer-range financial plan to handle your needs. While I don't quite have the "too much money" outlook, I am in a situation where I need to re-structure my business in the first quarter of next year. I will be re-structuring and relocating in order to lay a foundation for eventual retirement (in the not-too-far-distant future).
    Bill / Marketing Blog @ 12PM - Current project: Resurrecting my "baby" at South Baltimore..
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  13. #13
    notary sojac Herb ԿԬ's Avatar
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    Cool
    Quote Originally Posted by mellie
    or relocate to NY.
    Oh, that'll do it . . . what is the sound of 85 or more merchants dropping you

    Yes, an accountant, some business travel -- you can use a travel service to prepay a trip to ASW09 . . . lots of ideas here.

  14. #14
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    You could get rid of a good deal of it through real estate depreciation via rental properties if you live in the US.

    I just got into affiliate marketing, and taxes seem to be one of the largest expenses that GOOD marketers have.

    Many landlords/rental owners can do away with their entire tax liability by holding the properties.

    I guess you could PM me and maybe I could help, but I think this strategy would be best.

  15. #15
    Moderator MichaelColey's Avatar
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    Look at an SEP IRA instead of the more common types of retirement accounts. You can contribute a maximum of something like $45k/year to it. (The maximum amount is adjusted each year for inflation.)

    Charitable contributions are good.

    Beyond that, look for additional expenses that will produce future returns. Don't blow money just to reduce your taxes if the things you're spending the money on won't provide any benefit to you later. For example, pour money into enhancements to your site or development of future sites. You'll get tax-reducing expenses now and (presumably) more revenue later.
    Michael Coley
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  17. #16
    Full Member Code Monkey's Avatar
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    Quote Originally Posted by 20yearbillionaire.com
    You could get rid of a good deal of it through real estate depreciation via rental properties if you live in the US.

    I just got into affiliate marketing, and taxes seem to be one of the largest expenses that GOOD marketers have.

    Many landlords/rental owners can do away with their entire tax liability by holding the properties.

    I guess you could PM me and maybe I could help, but I think this strategy would be best.
    You can't do PMs.. So, just tell me here..

    As far as I understand it, I can only use the depreciation angle to write off some income... So, if I buy a $300k office, I can only write off about $10k a year in depreciation expenses.. Not a worthy investment in my opinion...

    How can I retain 80% of my profit within my corporation this year, and use it to pay me a much smaller salary for the next 10 years?? In other words, instead of making $xxx,xxx this year, and paying taxes on it, how can I retain that money in the corp and only pay myself $xx,xxx??

    Thanks

  18. #17
    Full Member Code Monkey's Avatar
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    Quote Originally Posted by MichaelColey
    Look at an SEP IRA instead of the more common types of retirement accounts. You can contribute a maximum of something like $45k/year to it. (The maximum amount is adjusted each year for inflation.)

    Charitable contributions are good.

    Beyond that, look for additional expenses that will produce future returns. Don't blow money just to reduce your taxes if the things you're spending the money on won't provide any benefit to you later. For example, pour money into enhancements to your site or development of future sites. You'll get tax-reducing expenses now and (presumably) more revenue later.
    Michael, doing all of those things.. Have a Solo 401(k) set up and maxing it out... I want to invest a LOT of money today, so I don't have to pay taxes on it, and have that investment grow over the next xx years..

  19. #18
    Full Member Greywolf's Avatar
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    Quote Originally Posted by Code Monkey
    How can I retain 80% of my profit within my corporation this year, and use it to pay me a much smaller salary for the next 10 years?? In other words, instead of making $xxx,xxx this year, and paying taxes on it, how can I retain that money in the corp and only pay myself $xx,xxx??
    You REALLY should get a good accountant or tax attourney instead of listening to us wannabe "experts"

  20. #19
    Moderator MichaelColey's Avatar
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    Quote Originally Posted by Code Monkey
    How can I retain 80% of my profit within my corporation this year, and use it to pay me a much smaller salary for the next 10 years?? In other words, instead of making $xxx,xxx this year, and paying taxes on it, how can I retain that money in the corp and only pay myself $xx,xxx??
    The only problem with that is that if your corporation makes $xxx,xxx this year, the corporation pays taxes on it, plus you will pay taxes on the $xx,xxx.

    What type of corporation do you have?

    Definitely talk to a good tax accountant.
    Michael Coley
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  21. #20
    Full Member Code Monkey's Avatar
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    Don't want to go to an accoutant.. I like to learn/do things myself... That's why I have this 'problem'...

  22. #21
    Moderator leeann's Avatar
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    A good way to learn is to pay attention to what a good accountant tells you. Maybe plan to deal w/ it yourself next year. This year it sounds like you need some professional help. Sign up for a business tax course for next year.
    leeann


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  23. #22
    ABW Veteran Mr. Sal's Avatar
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    Quote Originally Posted by Code Monkey
    I already do the basics, like maxing out retirement accounts, hire a spouse and max out her retirement accounts, etc etc...
    Thanks for that idea, Code Monkey.

    I didn't knew that those services , were deductible.

    I hope I don't get too much, but now I will go on a new and mission this weekend.







  24. #23
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    Quote Originally Posted by Code Monkey
    Don't want to go to an accoutant.. I like to learn/do things myself... That's why I have this 'problem'...
    Yes, but you're asking here and getting your "learning" here when you can get it from somebody who's actually qualified, like an accountant. You learn on your own from books, other people etc. This isn't the sit and reflect and figuring out things out on your own type of learning.

  25. #24
    Classic Rocker Mack's Avatar
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    Quote Originally Posted by Mr. Sal
    Thanks for that idea, Code Monkey.

    I didn't knew that those services , were deductible.

    I hope I don't get too much, but now I will go on a new and mission this weekend.







    They aren't. I tried writing off my marriage as a loss via bad investment and the IRS didn't allow it.

  26. #25
    ABW Ambassador VampireSkunk's Avatar
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    I wish I had your problem, Codemonkey.

    I am very reluctant to give to charities, because I don't trust them to make good use of the money.

    Some of them have very expensive TV advertising campaigns.

    Some of their CEOs earn obscene salaries.

    They often invest surplus funds to make extra money, and you never know what companies they're investing in.

    A few years ago the world wildlife fund was found to be investing in a company which exported primates from Africa and sold them to animal experimentation laboratories.

    And they employ very dubious fund-raising activities.

    (One Cause, ahem...)

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