Folks who make north of $1M
What do you do throughout the year to keep your tax bill as low as possible? I know uber rich buy planes and golf courses and write off the expenses. I was just wondering if there is anything middle-class folks who make around 1M can do to keep the tax bill low? EDIT: A few posters are annoyed by my characterization of 1M income as middle class. What I meant is that a person making close to 1M is not rich by NYC standards, in that they can not buy a condo on the billionaire row, or private jets, etc. So I put all such folks into the middle class. Maybe upper middle class?
“Middle-class folks who make aroung 1M” 😂
So ideally, you can take that money as capital gain rather than W2 income. Then you can go far by harvesting tax losses in your investments.
Agree. But what if they are short-term gains?
Tax loss harvesting works great with short term gains too. Just not W2 income.
“Middle class folks” do not make 1M. That’s solidly wealthy, upper class, even in the Bay Area. Top 0.3% of income in the US.
OP isn't far off calling 1M TC folks middle class Half of Nvidia seems to be making that much. I guess there isn't much that can be done to save taxes on the income. However there are tons of strategies to grow money tax free.
What strategies do you use?
1M TC is >98 percentile in Santa Clara County
Leverage debt to reduce taxes. Invest in appreciating assets through debt and get tax benefits
If u have a business, plenty of things u can do, like move income to tax haven shell companies, if ur getting a w2 from employers the. Options are pretty limited
I see. So you are saying that the income from one source can be written off from a loss-making business.
What about paying your f'ing tax and help the society instead of being a greedy a-hole?
What’s your TC?
There isn’t much you can do if that is W2 income. Rental properties help but there’s a cap to how much you can write off as losses. Obviously owning a primary home + mortgage helps to an extent as well. Just be prepared to pay a lot in federal and state taxes The real pros are the ones that make $1M being self employed
Getting married doesn't decrease taxes, it increases
It depends on how much your spouse makes. Usually it decreases it