21–30 of 107 posts
> Taxes. It is our duty as patriotic Americans to keep our individual taxes as low as possible. Can someone explain that sentence? What's "patriotic" about paying less taxes?
The best tax optimization trick you can do is to open an LLC. Costs $800/year to maintain in California, enables you to claim business expenses for a looot of things. Sometimes surprisingly. You don’t even need a whole lot of revenue. Just sell something, anything, and go for it. The penalty for going overboard is to pay back taxes with a bit of interest. As long as you don’t do anything crazy, you should be fine. Re…
Seems weird to put so much into retirement funds if your plan is to retire in your 30s, the penalties of touching that before 60 are pretty substantial.
I suspect there's some sort of inheritance of property or something they're not disclosing.
The author has 3 children, and that's a _household_ income of $150000. 150 grand is not a huge family income to support 2 adults and 3 kids; as a country, we give people tax breaks to encourage having children and to help support people who make that choice. Calling this "Houdini-like" (author's words) tax hacking seems like a bit of a misunderstanding of deliberate social policy!
> 150 grand is not a huge family income to support 2 adults and 3 kids It's more than double the median household income.
The best tax optimization trick you can do is to open an LLC. Costs $800/year to maintain in California, enables you to claim business expenses for a looot of things. Sometimes surprisingly. You don’t even need a whole lot of revenue. Just sell something, anything, and go for it. The penalty for going overboard is to pay back taxes with a bit of interest. As long as you don’t do anything crazy, you should be fine. Re…
Also $800/yr in California? You people are being ripped off. LLCs aren’t laid any fees to maintain annually in Arizona, and they’re perpetual entities.
The author has 3 children, and that's a _household_ income of $150000. 150 grand is not a huge family income to support 2 adults and 3 kids; as a country, we give people tax breaks to encourage having children and to help support people who make that choice. Calling this "Houdini-like" (author's words) tax hacking seems like a bit of a misunderstanding of deliberate social policy!
noone is beholden to pay more taxes than the tax code requires.
anyone who uses emotional appeal to say otherwise wont help me when i need their help anyway so they can pound sand.
The best tax optimization trick you can do is to open an LLC. Costs $800/year to maintain in California, enables you to claim business expenses for a looot of things. Sometimes surprisingly. You don’t even need a whole lot of revenue. Just sell something, anything, and go for it. The penalty for going overboard is to pay back taxes with a bit of interest. As long as you don’t do anything crazy, you should be fine. Re…
The two biggest reducers he cites are 401k contributions and tax-loss harvesting. #1. 401k. While this is a great idea, if he's trying to retire at 33, putting 17.5k away from his 70k paycheck is not going to help because he can't touch it until he is 59.5 (w/o penalty). #2. Capital losses Tax-loss harvesting means selling securities that are underwater to get a capital-loss deduction. I don't know where to start exp…
That's not quite true. With 5 years of preplanning, you can get money out of a 401k without any penalty at any age (although, you will of course pay taxes on it) by doing a backdoor Roth IRA ladder.
Earlier quoted context omitted.
and watch it come out that their parents take care of their kids and their house is paid off :D
There's not even enough money to buy food unless they are living off savings. They couldn't even pay property tax! By definition, if they were living off dividends or capital gains - if they were doing things legally - they'd have a higher taxable income. This is click bait to the extreme.
The best tax optimization trick you can do is to open an LLC. Costs $800/year to maintain in California, enables you to claim business expenses for a looot of things. Sometimes surprisingly. You don’t even need a whole lot of revenue. Just sell something, anything, and go for it. The penalty for going overboard is to pay back taxes with a bit of interest. As long as you don’t do anything crazy, you should be fine. Re…
Yeah, for anyone reading who needs to read this: don’t do this. Unless you’re running a legitimate business, this is blatant tax fraud. Also $800/yr in California? You people are being ripped off. LLCs aren’t laid any fees to maintain annually in Arizona, and they’re perpetual entities.