Spending 70,000 to avoid owed taxes.

[gbflyer]

I got my ass kicked last year because I was asleep at the switch. We generally use 179 deductions on equipment. I’d rather buy something that generates more money than pay a bunch of tax they piss away. And yes I do my part for my community in many other ways.

 

[deltadukman]

Can you 1031 it and get creative on the like kind exchange? That is what I do when flipping land.

 

[mtnbiker208]

congrats, you owe, because you made money. Welcome to the club.
That is all i ever got when complaining about having to pay taxes on money i made.

 

[Jgray]

Some creative stuff on this thread. I typically go the CPA route and then write the check and move on as others have said.

 

[CorbLand]

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

Dont you ruin the "get people thrown in jail for tax fraud so there is less demand for tags I want" strategies some of us have.

 

[ElkNut1]

I'm usually fairly savvy in monies made. It's just this year we had a carry over plus selling the ElkNut App.

I will talk to our Account but was fishing for ideas I may not have thought of so we could be well prepared with our conversation with him. Thanks!

ElkNut/Paul

 

[Maverick1]

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

Walt - have you considered buying a car wash? Appears that would make Skyler happy with your situation.

 

[Maverick1]

Ha Ha, really not into hunting any longer!

Huh? You aren’t hunting anymore?

 

[N.ID7803]

Huh? You aren’t hunting anymore?

Yeah what's the deal @ElkNut1, no more Elk Nut app either?
I thought it was strange not seeing anything leading up to season or success pics coming from you.

 

[browning2480]

I thought tornados were the only ones that flipped mobile homes

Not according to this video.

 

[ElkNut1]

Ya, just can't get excited like I used to. I tried for the last 3 years but haven't found the spark of desire I used to have. It's been 3 years since I've done any real elk hunting. It is what it is I guess. The App is now owned by Gotgametechnologies.

It's all good. -- I do hate giving the IRS any extra money, they get plenty from me as is! I'll figure something out before the end of the year. Thanks guys!

 

[SDHNTR]

Huh? You aren’t hunting anymore?

Yeah, what on earth?

 

[fmyth]

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.

37% to the feds, 2.5% to the state (AZ) 15.3% self employment tax = 54.8% tax. If I spend 100k on a new truck it will cost me $45,200 net and the Gov gets ZERO from me to send to Ukraine.

 

[fmyth]

Have you contributed the max to your IRA, SEP, and HSA?

 

[Axlrod]

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.

The math is a little different in my experience. I get a new Chev. 2500 diesel every 3 years for my distribution business. My last one was $80k, but my trade in was worth $55k. So it costs me about $1800 per year, after tax savings, to drive a newer truck with a warranty. I'm not saying it's for everyone , but I need my truck to tow my trailer everyday.

 

[Ucsdryder]

Ha Ha, really not into hunting any longer!

Paul, take it back right now! My dad still talks about the conversation he had with you 8 years ago. Sounds like you’re happy though!

 

[180ls1]

37% to the feds, 2.5% to the state (AZ) 15.3% self employment tax = 54.8% tax. If I spend 100k on a new truck it will cost me $45,200 net and the Gov gets ZERO from me to send to Ukraine.

I was running with his numbers and spitballing for simplicity. It's always worth crunching them though for your situation.

Paying 55% is a lot. I would seriously consider looking into how your business is structured and other write offs.

 

[Olsolitaire1]

Maybe just pay your taxes like the rest of us do. Move on, thanks for sharing your personal finances with us.

 

[waspocrew]

Like a few have mentioned, just pay the tax and then enjoy the remainder.

 

[fwafwow]

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

^^^This. And the questionable advice has continued.