Spending 70,000 to avoid owed taxes.

[ElkNut1]

My wife & I have been picking up Mobile Homes & flipping them. We've done 1- 2 a year for a few years & have been fortunate to have plenty of write offs to avoid taxes. This year we are not in that same boat, we need to shed 70,000 or pay 20,000 - 25,000 on that 70.

Now we could pick up another Mobile & hold until next year but I really do not want one at this time. Are there other avenues I can consider where this money can be re-directed to avoid the tax loss? -- At this time we have tallied up every write off possible so have that done. Thanks for any help!

ElkNut/Paul

 

[schmalzy]

My wife & I have been picking up Mobile Homes & flipping them. We've done 1- 2 a year for a few years & have been fortunate to have plenty of write offs to avoid taxes. This year we are not in that same boat, we need to shed 70,000 or pay 20,000 - 25,000 on that 70.

Now we could pick up another Mobile & hold until next year but I really do not want one at this time. Are there other avenues I can consider where this money can be re-directed to avoid the tax loss? -- At this time we have tallied up every write off possible so have that done. Thanks for any help!

ElkNut/Paul

Depending on if you’re qualified investor a Direct participation project in oil and gas may be an option. Haven’t researched it enough lately but from memory roughly 90% is deductible. To
Be clear, I have never personally invested but have chatted with a few guys that have. Definitely not for the risk adverse.

Should be able to google the specifics.


Sent from my iPhone using Tapatalk

 

[Jimmy]

Sucks. My family business has had 2 good years in the last 2 decades, and we got massacred by taxes.

 

[doc holiday13]

Do you need to buy "tools" or can you invest it into property?

 

[Bearded Bowhunter]

Could look at a section 179 deduction if you need a new truck to move one of those mobile homes around or carry your tools.

 

[TxLite]

Can it be shed into a rental property?

 

[ORJoe]

 

[180ls1]

Is the income considered active? Are you are a RE professional, licensed or similar? You could setup a qualified plan like a 401K

 

[mtnrunner260]

Auction tags?

 

[KsRancher]

I will be the odd ball out. If I made enough money that I owed $20,000 and wrote off everything I could. I am in the camp of pay the taxes and keep the cash worry free. Kicking the tax can down the road has never interested me. Most people I know hate to pay taxes so bad they would spend the whole $70k on stuff they did not need just to not pay taxes. And then gripe they have no money.


Pay the $20k and keep the $50k and enjoy it

 

[LFC911]

Buy a cabin in the elk mountains/woods and AirBNB it for the months outside of hunting season.

 

[ElkNut1]

Ha Ha, really not into hunting any longer!

Don't need tools or trucks, Im more than equipped!

I was really looking for more of a short term investment. (12 months) Then pull it out if so desired. Thanks!

 

[CHIEF CRNA]

Do you have a Solo 401K? You could dump a lot in there pre-tax. That is what I do.

Total contributions to a participant's account, not counting catch-up contributions for those age 50 and over, cannot exceed $69,000 for 2024 ($66,000 for 2023; $61,000 for 2022; $58,000 for 2021; $57,000 for 2020)

 

[180ls1]

I will be the odd ball out. If I made enough money that I owed $20,000 and wrote off everything I could. I am in the camp of pay the taxes and keep the cash worry free. Kicking the tax can down the road has never interested me. Most people I know hate to pay taxes so bad they would spend the whole $70k on stuff they did not need just to not pay taxes. And then gripe they have no money.


Pay the $20k and keep the $50k and enjoy it

This is definitely a problem with some folks. I'll pick on contractors. They justify buying a new $100K truck when their "old" one is just fine. Instead of having $75K free and clear they spend $100k to "save" $25k.

 

[wapitibob]

I paid $40,000 in taxes one year, complained to my very expensive accountant, and he said, "you're paying taxes because you made a ton of money, write the check and enjoy life."

 

[cnelk]

I thought tornados were the only ones that flipped mobile homes

 

[Z Barebow]

At some time, you will need to pay the piper. But think about doing it in smaller chunks.

One option- Fund a traditional IRA. (As I suspect you have already fully funded a Roth IRA. A Roth has contribution limits. Traditional does not [I believe] )

Convert the traditional IRA to a Roth (Before required RMD. ) There are NO limits on conversion to Roth.

Key to making this work is doing the conversion when your ordinary income is small. Additionally long capital gains is taxed at a lower rate than income tax.

Disclaimer. You are taking advice on a hunting site so you get what you pay for! LOL! (Also I get plenty of advice from internet also!)

There are likely plenty of people who are smarter than I on this site! Good luck Paul!

 

[ETtikka]

Could look at a section 179 deduction if you need a new truck to move one of those mobile homes around or carry your tools.

This and/or SEP IRA

 

[SDHNTR]

Hold the phone! Please talk to a CPA. There are already several pieces of bad advice posted here!

 

[Duckhunterbrad]

The oil well investment is very high risk but with risk comes great reward. If you can part with the 70k and be fine, then that is an option. There is a company in South Carolina Broadstreet Private Equity that allows people to invest in their real estate developments, you can 1031 in and out of their plans. They have something like a 14% return rate at the moment.