How to reduce the tax liability? (ofcourse legally)
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....
Well, That is not enough, not looking for like just 2 to 5% reduction in the tax bill.
Are you expecting some sort of magical answer that will cut your tax rate by like 10%?
Does not have to be magical or super easy to follow, I know if those were easy everyone would do it.
Make a business
Best advice...simple and to the point and will be overlooked by most!
Incorporate everything and earn everything from long term cap gains.
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.
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.
You need to become rich and start getting your income not from W2
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.
MLP, investments come as partnerships from oil pipelines. Option selling and then tax loss harvesting.
I hate receiving K1 tax form for MLP ( ETF like USO or UNG) mid March every year.
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
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.
Contribute to HSA account if you’re relatively healthy and have HDHP
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