I want to minimise the amount of taxes I pay.

Wolfwoodd · 2014-05-14T14:26:11+00:00

I'm an accountant in the US. You should minimize the amount of taxes you pay, regardless of what the money is being spent on. Unfortunately, you don't have a lot of options unless you're self-employed or incorporated. The best you could do is to defer taxes by contributing to an IRA.

Charitable donations wont help unless you itemize your deductions (you probably don't, unless you own property).

Archwinger · 2014-05-14T14:23:27+00:00

If you're rich and can diversify your portfolio, municipal bonds make tax free interest -- but honestly, you'd make more money overall by investing in something that's actually profitable even if you're paying taxes on the income.

If you or your company does a lot of international work, there are some exemptions for foreign income under certain circumstances. You also get a deduction for any foreign income tax you have to pay.

Anything you do invest in, hold for a year or more before selling so you pay long term capital gains tax instead of short term.

If you own a business, there are ways to use business expenses to off-set income, while also covering a lot of your personal needs via the business (so you don't draw a salary or as much of a salary).

Along similar lines, if you're rich, you can always establish trusts to send money in ways that would otherwise be subject to gift and other taxes.

There are literally thousands of credits and deductions you can claim that are far too numerous to get into, but worth researching.

You can also move to a state with no state income tax (though property taxes there are usually higher), shop in counties with lower sales taxes, and so on.

Contributions to health savings accounts can be pre-tax, but you have to use those for qualified medical expenditures. Contributions to most types of IRAs and 401ks are pre-tax, but you pay tax when you start withdrawing money in a few decades, often at a much higher rate than you would have today.

Contributions to a roth IRA and various types of educational savings accounts (Coverdell, 527) are post tax, but the growth isn't taxed as long as you're old enough to draw from a roth, or are spending your educational money on a qualified educational expense.

[deleted] · 2014-05-14T19:34:02+00:00

Yeah it sucks, how about pay zero taxes. its risky, but you could always be a hobo - then no one has a reason to point a gun at you and then shove your ass behind bars.

no stuff, no one cares. have a house kids and job? you will be divorce raped.

aaron_the_just · 2014-05-15T06:57:42+00:00

I've lived about half of my adult life this way, and I regret it. I spent a lot of valuable time and resources focused on getting my effective tax rate to 0% or even negative, whilst my actual "real" after tax income was in the $100k-ish range.

I should have aimed my focus at being more productive instead. Then I'd have a $250k job or business income now, and even though I'd owe lots of taxes, I could hire some accountants to streamline and ultimately who cares about anything except what your after-tax income is?

[deleted] · 2014-05-14T08:32:45+00:00

Hire an accountant that wants to save you money.

ozymodeus · 2014-05-15T18:46:18+00:00

Have you considered turning to a life of crime?

Title	I want to minimise the amount of taxes I pay.
Author	Schrodingersdawg
Upvotes	0
Comments	9
Date	May 14, 2014 8:29 AM UTC (9 years ago)
Subreddit	Posted in /r/TheRedPill
Original Link	https://old.reddit.com/r/TheRedPill/comments/25iunb/i_want_to_minimise_the_amount_of_taxes_i_pay/
Archive Link	https://theredarchive.com/r/TheRedPill/i-want-to-minimise-the-amount-of-taxes-i-pay.15401 https://theredarchive.com/post/15401