What legal steps you can take to reduce your taxes?

[Coronita]

[quote=FormerSanDiegan]The #1 legal tax break is write-off of interest of your first mortgage. Of course, getting that requires you to leverage real estate which has been a losing proposition the last few years.

[/quote]

Unfortunately, this itemized deduction I believe also starts getting reduced above certain income levels…

Also, there is a point in which you end up paying AMT….and some itemized deductions won’t count toward AMT (property tax and income tax deductions aren’t part of AMT calculation, for instance).

Ironically, experimenting with my tax software, I think mortgage interest payments are still deductions when computing AMT…..

[surveyor]

[quote=waiting for bottom][quote=DataAgent]1. Have a non-working spouse start a home-based business. Most businesses show taxable losses the first few years.
2. Buy a rental property. Even if you break-even with your cash flow, you can still depreciate the property creating a taxable loss.

[/quote]

Careful on the rental property. If you have more than $150K of AGI – no write off for you![/quote]

Please google “real estate professional tax deduction”.

Then $150k of AGI don’t matter.

[surveyor]

[quote=waiting for bottom][quote=DataAgent]1. Have a non-working spouse start a home-based business. Most businesses show taxable losses the first few years.
2. Buy a rental property. Even if you break-even with your cash flow, you can still depreciate the property creating a taxable loss.

[/quote]

Careful on the rental property. If you have more than $150K of AGI – no write off for you![/quote]

Please google “real estate professional tax deduction”.

Then $150k of AGI don’t matter.

[surveyor]

[quote=waiting for bottom][quote=DataAgent]1. Have a non-working spouse start a home-based business. Most businesses show taxable losses the first few years.
2. Buy a rental property. Even if you break-even with your cash flow, you can still depreciate the property creating a taxable loss.

[/quote]

Careful on the rental property. If you have more than $150K of AGI – no write off for you![/quote]

Please google “real estate professional tax deduction”.

Then $150k of AGI don’t matter.

[surveyor]

[quote=waiting for bottom][quote=DataAgent]1. Have a non-working spouse start a home-based business. Most businesses show taxable losses the first few years.
2. Buy a rental property. Even if you break-even with your cash flow, you can still depreciate the property creating a taxable loss.

[/quote]

Careful on the rental property. If you have more than $150K of AGI – no write off for you![/quote]

Please google “real estate professional tax deduction”.

Then $150k of AGI don’t matter.

[surveyor]

[quote=waiting for bottom][quote=DataAgent]1. Have a non-working spouse start a home-based business. Most businesses show taxable losses the first few years.
2. Buy a rental property. Even if you break-even with your cash flow, you can still depreciate the property creating a taxable loss.

[/quote]

Careful on the rental property. If you have more than $150K of AGI – no write off for you![/quote]

Please google “real estate professional tax deduction”.

Then $150k of AGI don’t matter.

[luchabee]

If you are maxing out your retirement plan or are taking minium required distributions from an IRA, you might want to look at other options, including:

1. Tax-free bonds

2. For high-income folks, some insurance options allow for tax-deferral.

3. Charitable trusts and annuities can also work well: avoidance of some capital gains taxes, tax-free payments, immediate tax deduction, and can be timed with IRA distributions or Roth conversions.

I hate taxes.

[luchabee]

If you are maxing out your retirement plan or are taking minium required distributions from an IRA, you might want to look at other options, including:

1. Tax-free bonds

2. For high-income folks, some insurance options allow for tax-deferral.

3. Charitable trusts and annuities can also work well: avoidance of some capital gains taxes, tax-free payments, immediate tax deduction, and can be timed with IRA distributions or Roth conversions.

I hate taxes.

[luchabee]

If you are maxing out your retirement plan or are taking minium required distributions from an IRA, you might want to look at other options, including:

1. Tax-free bonds

2. For high-income folks, some insurance options allow for tax-deferral.

3. Charitable trusts and annuities can also work well: avoidance of some capital gains taxes, tax-free payments, immediate tax deduction, and can be timed with IRA distributions or Roth conversions.

I hate taxes.

[luchabee]

If you are maxing out your retirement plan or are taking minium required distributions from an IRA, you might want to look at other options, including:

1. Tax-free bonds

2. For high-income folks, some insurance options allow for tax-deferral.

3. Charitable trusts and annuities can also work well: avoidance of some capital gains taxes, tax-free payments, immediate tax deduction, and can be timed with IRA distributions or Roth conversions.

I hate taxes.

[luchabee]

If you are maxing out your retirement plan or are taking minium required distributions from an IRA, you might want to look at other options, including:

1. Tax-free bonds

2. For high-income folks, some insurance options allow for tax-deferral.

3. Charitable trusts and annuities can also work well: avoidance of some capital gains taxes, tax-free payments, immediate tax deduction, and can be timed with IRA distributions or Roth conversions.

I hate taxes.

[Coronita]

[quote=luchabee]If you are maxing out your retirement plan or are taking minium required distributions from an IRA, you might want to look at other options, including:

1. Tax-free bonds

2. For high-income folks, some insurance options allow for tax-deferral.

3. Charitable trusts and annuities can also work well: avoidance of some capital gains taxes, tax-free payments, immediate tax deduction, and can be timed with IRA distributions or Roth conversions.

I hate taxes.
[/quote]

The Variable Annuities are probably too complex for most mortals, and they have huge fees.

Dumb question on Charitable trusts? How do these help when one isn’t in the mood of being charitable? Not that I don’t donate..Just curious though are there advantages to charitable trusts versus folks that normally don’t donate?

[Coronita]

[quote=luchabee]If you are maxing out your retirement plan or are taking minium required distributions from an IRA, you might want to look at other options, including:

1. Tax-free bonds

2. For high-income folks, some insurance options allow for tax-deferral.

3. Charitable trusts and annuities can also work well: avoidance of some capital gains taxes, tax-free payments, immediate tax deduction, and can be timed with IRA distributions or Roth conversions.

I hate taxes.
[/quote]

The Variable Annuities are probably too complex for most mortals, and they have huge fees.

Dumb question on Charitable trusts? How do these help when one isn’t in the mood of being charitable? Not that I don’t donate..Just curious though are there advantages to charitable trusts versus folks that normally don’t donate?

[Coronita]

[quote=luchabee]If you are maxing out your retirement plan or are taking minium required distributions from an IRA, you might want to look at other options, including:

1. Tax-free bonds

2. For high-income folks, some insurance options allow for tax-deferral.

3. Charitable trusts and annuities can also work well: avoidance of some capital gains taxes, tax-free payments, immediate tax deduction, and can be timed with IRA distributions or Roth conversions.

I hate taxes.
[/quote]

The Variable Annuities are probably too complex for most mortals, and they have huge fees.

Dumb question on Charitable trusts? How do these help when one isn’t in the mood of being charitable? Not that I don’t donate..Just curious though are there advantages to charitable trusts versus folks that normally don’t donate?

[Coronita]

[quote=luchabee]If you are maxing out your retirement plan or are taking minium required distributions from an IRA, you might want to look at other options, including:

1. Tax-free bonds

2. For high-income folks, some insurance options allow for tax-deferral.

3. Charitable trusts and annuities can also work well: avoidance of some capital gains taxes, tax-free payments, immediate tax deduction, and can be timed with IRA distributions or Roth conversions.

I hate taxes.
[/quote]

The Variable Annuities are probably too complex for most mortals, and they have huge fees.

Dumb question on Charitable trusts? How do these help when one isn’t in the mood of being charitable? Not that I don’t donate..Just curious though are there advantages to charitable trusts versus folks that normally don’t donate?

[Author]

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