Since I am supposed to be working... shhhhhh.

When selling a mutual fund, don't forget that if you had your dividends reinvested, you possibly paid tax on the dividends on previous years returns and need to bump up your "basis" or cost by those amounts.

No sense in paying double taxes on the dividends as a gain.

Scot

NEXT

 

Incorporate yourself. . .write everything off as a justifiable business expense, pay yourself about $3 a year, pay each of your kids $5/year, and whatever is left NET (which shouldn't be alot), claim as net income for you corporation. Pay taxes only on net income, and taxes on your salaries that you paid out.

How's that for a hint. . .also before incorporating yourself, you have to come up with a reasonable business idea so that you have a reason for incorporating yourself.

 

Luder

Most companies will not allow corporations to be employees. This is fine for a self-employed person, but to the average joe, this method will not work.

Also, you run into all sorts of "co-mingling of funds" issues when you do this and if by chance you get audited....

In my opinion, the best way to avoid taxes is to work for cash, cold hard cash. No checks, no paper trail, just cold hard cash.

Easy items to "play with" are contributions, investment interest expense, tax-prep fees and other itemized deductions. Anything that gets reported to the IRS is tough to mess with. That's why cash is King - no trail.

 

If you have reason to fear an audit, file on the last day, even if you are getting a refund. Of course if you have nothing to fear, file whenever you want.


Don't forget that you can still contribute to a Roth until April 15th.

Don't forget that if you make under (I think $80k) you can get the lifetime learning credit for education every year. (Hope is just first two years).

Try not to get married late in the year, if you fall prey to the marriage penalty, you get extra hosed.

 

Yes, get incorporated...my company is Stevens Consulting Group, Inc. A sub-chapter something or other (that's why I have an attorney)

And as for secret tax tips? My secret tax tip is Jim Hardy, CPA, works for a firm in Skokie. Amazing...

 

Itemize your non-cash contribution up to $400 w/o a receipt

 

Meat, can you spell F-R-A-U-D?

 

Don't ask me, man. I just ran Turbo Tax and I have to cut a check for $12,950!! My total tax liability is almost 40 grand. I guess I better get an accountant, huh? Damn, I never should have taken income tax in spring semester.

 

no fraud if it never happened!!!

 

Give all your money away as charatable contributions. As a matter of fact I happen to be president of the "save the stook foundation" and I can take your tax deductible contributions. And as always, thank you for your support.