How to reduce the tax liability? (ofcourse legally)

OceanX Offermore
May 15 21 Comments

How to legally reduce taxes?

not looking for suggestions like:
401k
Donate your money
Get married and ask your spouse to quit working

When someone works so hard to make a lot of money, how to keep most of it if not all....

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TOP 21 Comments
  • Amazon / Mgmt
    SguJ18

    AmazonMgmt

    PRE
    Amazon
    SguJ18more
    Vote red
    May 150
  • Glu Mobile PQSK63
    1. Move to an zero state income state
    2. Incorporate a company and funnel all income through it as capped at 21% and there are many deductibles.
    May 162
    • Intel / Eng
      an_soft

      IntelEng

      PRE
      Broadcom Inc., Motorola Mobility (a Lenovo Company)
      an_softmore
      I agree 100%. Create your own your business ( web development, ebay, rental property, amazon delivery, uber/lyft, etc )
      May 16
    • New / Engjavaislife
      Are you required to make a certain income from a company you make to make these deductions ?
      May 16
  • Facebook public2
    Incorporate everything and earn everything from long term cap gains.
    May 152
    • OceanX Offermore
      OP
      Thanks for the response.
      Yes but to get long term capital gains I will have to invest first and for that, I will have to get income from my job, I am trying to maximize that income (after-tax income).
      After I have enough money your suggestions make a lot of sense, in fact, it is very commonly used by an average millionaire and all the billionaires.
      May 15
    • Facebook public2
      Yep, it's a long term strategy. Taxes occur every year. As long as you are a wage earner you are going to pay a lot in taxes until you become wealthy.
      May 15
  • New / Engjavaislife
    Make a business
    May 151
    • New / Manufacturing
      drrckcnnr

      NewManufacturing

      PRE
      Magnolia, Brown-Forman
      BIO
      an Manufacturing Ops guy that's specializes in hardware with emphasis on start ups/green field sites.
      drrckcnnrmore
      Best advice...simple and to the point and will be overlooked by most!
      May 16
  • Google z5RtU7F
    Are you expecting some sort of magical answer that will cut your tax rate by like 10%?
    May 151
    • OceanX Offermore
      OP
      Does not have to be magical or super easy to follow, I know if those were easy everyone would do it.
      May 15
  • eBay eyxitsjtj
    You are an employee not a contractor. There’s only upto a certain amount you can deduct as an employee (unless you have many kids). Become a contractor/consultant and then you can file as business which offers significantly more options for reducing the tax liability.

    Other option is to always look for opportunities to add new income streams.
    May 150
  • Snapchat jOLb15
    Contribute to HSA account if you’re relatively healthy and have HDHP
    May 150
  • Facebook NcXk51
    MLP, investments come as partnerships from oil pipelines.

    Option selling and then tax loss harvesting.
    May 151
    • Intel / Eng
      an_soft

      IntelEng

      PRE
      Broadcom Inc., Motorola Mobility (a Lenovo Company)
      an_softmore
      I hate receiving K1 tax form for MLP ( ETF like USO or UNG) mid March every year.
      May 16
  • New / Eng/ ÷
    You need to become rich and start getting your income not from W2
    May 151
    • OceanX Offermore
      OP
      Exactly, to become rich faster is it important to maximize the after-tax income.
      rich is a relative word anyway, but you get the point.
      May 15
  • New / Other
    DuQvV7y

    NewOther

    BIO
    Did stuff. Hustled hard. Retired
    DuQvV7ymore
    Make less money
    May 160
  • Nvidia buck25
    Sell blood
    May 160
  • Qualtrics ❄️IsComing
    Traditional IRA if you are eligible. If you already have investments in stock, sell your stocks at loss (upto $3k max loss) before year ends
    May 150
  • OceanX Offermore
    OP
    Well, That is not enough, not looking for like just 2 to 5% reduction in the tax bill.
    May 150

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