3M household income, ways to lower tax?
Due to stock appreciation we'll make 3M this year. We just bought a house (cash). Turbo tax feels sufficient for w2 and the occasional stock sale. Can a CPA find anything to lower taxes? What do people who's main income is w2 do to lower their taxes?
Get a CPA, even if they won’t save anything right away they will make your next years tax bill lower.
Fck, talk to tax planner or someone qualified. Don't be cheap
If it’s all W2 income + RSU stocks, not much you can do.
STR loophole, bonus depreciate and offset your W2 income.
Second that, have to have material participation and average stay 7 days or lower
I saw it recommended a bunch of times, but I've never seen someone share their own experience with SRT loophole.
Not quite 3M, but we made 1.2M this year. If money mainly comes from W2, there is absolutely nothing you can do to reduce income tax unfortunately.
^This. What I did was to open a company and put all my tech expenses there, which reduces no more than 10K of my total income (although it allowed me to feel less guilty when buying 10K of equipment in a year). Other than that, there is really not that much you can do. After a certain income level, even the mortgage interest won't help that much.
@tngy does your employer pay you or does he pay your LLC? I you are the W2 earner, those 10k were business loss but you did not have business income. If you keep doing that year after year you will get audited.
Turbo tax as long as it’s w2
Offshore accounts, shell companies. I understand you ve broken into the segment where people dont pay tax at all but pay the lawyers
Spoken like someone who's heard of these but don't know how they actually work. These are irrelevant for W2 income.
Oh definitely true. It was in jest. Didn't realize someone would actually take this seriously.
What kind of jobs earn 3M between 2 people with stock appreciation? Mind sharing breakdown and inspire us peasants to do better in our lives!
If you have significantly variable income, then you want to use a financial advisor. Even if they don’t find any fancy loopholes or deductions, they can help you with timing stock sales and harvesting losses to level load your taxable income, which easily can pay for them at your income level.
Harvesting losses is only useful if you actively trade stock and have losses. Neither apply to us: rarely trade and in the long run we've sold at profit.
Vote differently.
OP needs to pay their fair share
Yeah but with the uniparty, voting for either won’t make a difference. We need someone like Milei to make a dent