Spending 70,000 to avoid owed taxes.

[Stubborn_bowhunter]

I've heard you could go on a hunting trip or other if it's to advertise to potential clients. Then write it off.

Perhaps you have potential clients that are sheep guides that might be interested in mobile homes.

This information also came from a buddy who has been audited before. So I probably wouldn't believe me either.

 

[Crowmangler]

Do you operate as an S-Corp?

Do you have any minor grandchildren you can pay for working for you in any capacity? You can pay them up to around 10-12k without them paying any income taxes.

As mentioned above setting up & fully funding an SEP is a great tool to take care of over $60k of that money

 

[ElkNut1]

As I've mentioned, the IRS gets plenty of my money. Why in the world would I just hand them over 20,000+ when it's completely avoidable. We've made smart financial decisions in our 65 (my wife) & right at 70 years to this point. As I mentioned in the 1st post all I have to do is buy another & flip it next year. I'm getting a bit tired of doing them so was seeking out another alternative in paying the tax. BUT, I'd rather do that than just write a check to them.

As far as IRA -HSA & SEP, I have no clue what these are. Does one apply in my case?

Ha ha, I'm sure your Dad is a great guy Ucsdryder, if I talked with him again I'd probably recognized what we chatted about! (grin) Thanks!

ElkNut/Paul

 

[slvrslngr]

I think I’d be talking to a CPA or a tax attorney. Or buy a short term rental.

 

[Maverick1]

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!

Ah, geez. This kind of puts a crap damper on my day. I remember we talked on the phone a few times many years about elk hunting when I was first getting into it (think bowsite “Elknut, better make it 701 elk killed” with your techniques and the chuckler bugle tube days) and I was like “WTH is wrong with this guy?!” Abundance of exuberant enthusiasm.

The diminished end is nearing at some point for all of us, sadly. Enjoy it while it lasts for each of you, men. Can’t do this forever.

 

[ianpadron]

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!

The myth that eventually you need to square up with the IRS is just that, a myth.

"Swap til you drop" is a common strategy in REI where properties are bought, 1031 exchanged, repeat. Proper estate planning allows heirs to inherit the goods at step-up basis, rinse, repeat. No taxes paid.

Loopholes exist for a reason, and combining several of them can lead to some ridiculously small tax bills for high earners...especially when real estate is involved.

OP, if I was trying to dodge taxes on $70k, depending on what market you're in, I'd scoop another piece of real estate prior to years end and claim bonus depreciation. You'll wipe out your 2024 bill in 1 fell swoop and have another cash flowing asset.

 

[I live in round valley]

Don’t shop for financial advice on a hunting forum, half these guys are super dummies and didn’t graduate from round valley high like me.

Also, you have to change your name to “ the artist formerly known as elk nut” if you freely admit you don’t hunt anymore.

 

[sasquatch]

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!

Damn, never thought I’d hear you give it up. I’ll ALWAYS be grateful for the time you took to spend with me when I had no clue what to do outside of hunting South Louisiana marsh whitetails. This year’s Idaho bull is owed to you!

Sent from my iPhone using Tapatalk Pro

 

[insanelupus]

Perhaps I missed the suggestion from others, but what about a donation to your favorite or a new 501c3 charity? Lots of causes out there one can get behind to support after having a blessed year.

You may have one you already support, but many of the local type organizations have been finding it difficult with inflation the last few years. True, you really have to investigate the organization but there are some legit causes worth investing in.

Just another thought to add for your consideration.

 

[Davyalabama]

SEP IRA.
Have you set up 401 for your business, put money in there.
Sell off stocks that are underperforming.
Depreciation
Closing costs
Invest in Municipal Bonds

 

[ElkNut1]

Sasquatch, thank you bud & congrats on a great bull!!!

ElkNut/Paul

 

[5MilesBack]

Ya, if you really want to avoid paying it to the govt and do something good........donate it all to a charity.......or missions.

 

[Z Barebow]

Others mention SEP II forgot about that one. I started an LLC as a companion to my day I SEP contribution out every year. (Up to 25% of your income.) Won't cover it all, but every bit helps.

Charles Schwab