youKNOW profile picture
youKNOW profile picture

youKNOW

Sales Manager

Politicker
Valued Contributor
Catalyst
+5

DEATH AND TAXES.

Context: just looking for creative ideas on how to mitigate tax liability. Sounds like a good percentage of us are on a base + bonus type situation, ultimately all of it being W-2. Anyone have any good tips on how to maximize what you take home? Any setting up LLCs etc?

Tax strategies?

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📚 Resource
📬 WR Feedback
🧠 Advice
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66 comments

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TheSolicitorGeneral
Politicker
13
Small Market AE
Best not to fuck with the IRS. They got Capone when the FBI couldn't lol
NoSuperhero
Politicker
2
BDR LEAD
I second this.

That second options instead of get creative it should be get fucked, royally.
AutoSmiler
Arsonist
1
Account Executive
I think y'all would be even more surprised with what you can't get away with....y'all obviously have never really tested the IRS. They will take you down, don't mess with them or the state lol 
NoSuperhero
Politicker
1
BDR LEAD
As an illegal immigrant when I lived in the States, I'd never test those waters. Now I'm living elsewhere, but yeah I HAVE to be a better citizen anywhere I'm at so my opportunities aren't diminished by trying to save a ''few'' bucks.  
youKNOW
Politicker
1
Sales Manager
Haha...no doubt. Can't fuck with the "Untouchables."
Incognito
WR Officer
1
Master of Disaster
The IRS is so severely underfunded that you'd be surprised what you can get away with.

Just don't fuck with the State. They will absolutely ruin you.
msp_sales
Opinionated
1
Full Cycle Sales
Could not have said it better. Plus you spend half what you save on a CPA to cook the books. Not worth it.
Incognito
WR Officer
1
Master of Disaster
Shouldn't be more than $600 for a personal return. It literally takes them an hour to do it. If it's a W2, less. They have expensive software that makes it very, very simple. They can help do tax planning for you as well. 

Also, I don't understand why everyone is so into a ROTH. When you're retired, your income level will be substantially less than it is now (if you're currently in a high tax bracket). More often than not, a traditional IRA makes much more sense. 

This is why you don't use TurboTax or HR Block. 
msp_sales
Opinionated
0
Full Cycle Sales
Absolutely, that's what it should cost if you're not trying to get shady with your taxes.
Incognito
WR Officer
0
Master of Disaster
ok so I managed a $600k+ NOL, expensed the shit out of everything and haven't paid a dime in taxes ever. This was before I met my fiancé hahahaha. It's not shady if it's legal. Do you think your employer pays anything over 5%? Doubtful. 

To be fair, that was when I was operating my side gig LLC plus receiving a W2. Now I'm just a W2, so it's a bit harder. 
msp_sales
Opinionated
0
Full Cycle Sales
$600k+ NOL, expensed 

$600 for a personal return

I don't think we're talking about the same thing anymore.
Incognito
WR Officer
0
Master of Disaster
Believe it or not - it was. I even had it transferred from Canada to the US. Granted, I did all my own bookkeeping. 

Also, a personal return and an LLC are done together if you own the LLC. That has some obvious disadvantages if you're bending, but I never bent the state so I was left alone. 
Incognito
WR Officer
0
Master of Disaster
But you are correct - I cannot expense anything now that I don't operate an LLC. 
EltonJawn
Opinionated
1
Specialist, Key Partnerships
The fear in Tony Soprano’s eyes when he found out they were building a RICO case against him is enough to scare any person into making sure the IRS get’s their cut
looper1010
Celebrated Contributor
9
Solutions Specialist
Hire a CFP (Certified Financial Planner) to help with your estate planning.  There are many different ways to reduce your tax liability.  It all depends on the situation as a whole and your final wishes.  Don't listen to the internet.  

What's your tax bracket? When/where do you want to retire?  Do you have medical conditions?  Do you have kids and/or other dependents?  Have a non-traditional family?  (longterm gf/bf with kids living together, non-heterosexual partnerships, etc.). What state are you in?  Have income other than your job? (Rental properties, businesses, investments, etc.?) 

There's not enough context to give a proper answer.  

In general, live below your means.  Live off base and invest/save your commission check.  
1nbatopshotfan
Politicker
2
Sales
Great response! 
looper1010
Celebrated Contributor
0
Solutions Specialist
Thanks, I try.  I'm a huge budget nerd and FIRE nerd.  I love talking about personal finances <3
youKNOW
Politicker
1
Sales Manager
Holy sh*t Loop, how do I upvote this twice? Yeah the CFP part is key, agreed. Like any other "advisor", definitely good to talk to a few of them to make an assessment on who to go with. And I agree about the "below your means" part...wish I would've done that way early on in my sales career...haha.
looper1010
Celebrated Contributor
1
Solutions Specialist
It's never too late.  If you're in the middle of your career, you can begin planning your retirement now.  If you have kids, you can plan for their education, etc.  

There's great advice on the internet but it's never a "one-size fits all" answer.  A few hundred bucks for a CFP session can end up saving you thousands (most likely more) in the long term.  

If you're still early on in your career (young, single, healthy, no kids/dependents, lower end of tax bracket, no debt), then it may be too soon and you can fare well with general financial advice.  

I'd look into professional financial advice when you encounter a qualifying life event (marriage, kids, illness, death, debt, money windfall - think IPO, inheritance, lotto, etc.).  Good luck on your financial journey!
looper1010
Celebrated Contributor
1
Solutions Specialist
For some context, the CFP sessions at my company cost about $299-$399 and they're anywhere from 1-3 hours long, depending on your request.  I hope this helps you when shopping around for advisors.  
youKNOW
Politicker
1
Sales Manager
Not too different than a trust lawyer...I've seen quite a few that are non fee based, and quite a few that will charge as well...interesting...
Gizmo
Politicker
6
AE
Max out 401k and Roth (backdoor if necessary). Get a smart CPA who can find every deduction you can and maximize. Outside of that, not much you can do. Sorry for making a lot of money. 🤷🏼‍♂️
looper1010
Celebrated Contributor
1
Solutions Specialist
I'd double check your financial situation as a whole first.  Sometimes Trad may work in favor over a Roth, depending on your tax bracket and overall finances.  
Incognito
WR Officer
1
Master of Disaster
I literally just commented this - I should have been in a trad from the start. 
youKNOW
Politicker
0
Sales Manager
For sure, the right accountant and maxing everything out are important. 
Corpslovechild
Politicker
0
Inbound Sales Manager
Sometimes I wonder if marking is better 
eds
Opinionated
0
Salesy
This.
CCP
Opinionated
3
VP, Business Development
Get a good account that's heavy on the "grey." Not crooked, but not straight either. 
youKNOW
Politicker
1
Sales Manager
Good call. Someone who's willing to look at the entire picture. 
Incognito
WR Officer
1
Master of Disaster
You literally described all construction accounting. 
funcoupons
WR Officer
2
👑
Get yourself a good accountant.
Richie
Opinionated
2
Sales Manager
Death to taxes!!
funcoupons
WR Officer
3
👑
Taxation is theft!
youKNOW
Politicker
2
Sales Manager
You've got that right Coup...time to have a tea party...
funcoupons
WR Officer
0
👑
🍵
youKNOW
Politicker
2
Sales Manager
Richie get's it!
Ozz
Politicker
1
Account Executive
Investing in Real Estate is a good way to avoid taxes. Read Rich Dad, Poor Dad. 
funcoupons
WR Officer
1
👑
+1 for this...that's the direction I'm going in. I know someone in sales who's a RE investor on the side and the tax breaks he gets are substantial.
fuzzy
Notable Contributor
1
CMO (Chief Meme Officer)
Currently own 4 Airbnb’s. No stopping now. Real estate is the ultimate freedom tool
Ozz
Politicker
1
Account Executive
Man, that’s awesome! In what cities if you don’t mind sharing? 
youKNOW
Politicker
0
Sales Manager
Do they cash flow pre tax? Seems like the hardest part with RE (obviously depending on a number of different factors) is getting it to pay for itself, long term. 
fuzzy
Notable Contributor
0
CMO (Chief Meme Officer)
yes
fuzzy
Notable Contributor
0
CMO (Chief Meme Officer)
tampa bay area

Ozz
Politicker
0
Account Executive
Cool, is it as hot as Texas DFW / Houston if you're familiar with that market? Texas is insane right now - well the whole market is. 
fuzzy
Notable Contributor
0
CMO (Chief Meme Officer)
if not hotter. My biggest struggle so far has been finding more properties without paying stupid money. I get calls every day to sell. My airbnbs are rented 364 days a year. 
Ozz
Politicker
0
Account Executive
wow.... that's insane. Nice work man. Congrats on the success. 
detectivegibbles
Politicker
1
Sales Director
Plenty of ways to mitigate tax liability. But don't try and cut corners. 
Incognito
WR Officer
1
Master of Disaster
As someone who is engaged to an accountant, obviously I know some things. But as many have already stated - get a good one who specializes in what you do. 

Anyway, here are some of my favorite examples of tax write offs from fiance's clients:

>A monitor lizard 
>An amusement park in Afghanistan 
>Plastic surgery for the mistress 
>bribe money

and 85% of them definitely expense strippers and hookers.  
youKNOW
Politicker
2
Sales Manager
Nothing like having to 1099 your hookers!
Incognito
WR Officer
1
Master of Disaster
That's under T&E
braintank
Politicker
1
Enterprise Account Executive
Donate to charity and don't be afraid of capital losses
InQ5WeTrust
Arsonist
1
No marketing, mayo isn't an MQL
As an American overseas tax season makes me want to yeet myself into the ocean. 
plssircanigetanotherpo
Executive
1
IC
Just pay up after using all the legal deductions (charity, 401K, etc.). There are better things to do in life than going to jail for messing with the IRS. 
Blackwargreymon
Politicker
1
MDR
Hire a CFP (Certified Financial Planner) to help with your estate planning.  There are many different ways to reduce your tax liability.  It all depends on the situation as a whole and your final wishes.  Don't listen to the internet.  
Clashingsoulsspell
Politicker
1
ISR
Haha...no doubt. Can't fuck with the "Untouchables."
CaneWolf
Politicker
0
Call me what you want, just sign the damn contract
Pay your fucking taxes, don't go to fucking prison.
hurtscuzimold
Opinionated
0
Dude abiding
It’s easy to make it work in your favor. Unless you’re super rich I suppose. I wouldn’t know lol
fuzzy
Notable Contributor
0
CMO (Chief Meme Officer)
Everything is a tax write off.
RealEstateVeep
Politicker
0
VP of Real Estate
Just pay your taxes. Half the reason why we are a third world country with a Gucci belt is that the rich do this shit.
Justatitle
Big Shot
0
Account Executive
The only creative way to go is if you get hired as a contractor for the company and you incorporate yourself. Then they’d be paying you and you can file differently. If you are a W-2 employee the IRS are the last people you want coming after you. They can quite literally go into your bank accounts and seize assets if you don’t pay them. 
eds
Opinionated
0
Salesy
Get into crypto!
Santipodero
Politicker
0
Sanix
don't fuck with the state
MR.StretchISR
Politicker
0
ISR
Best not to fuck with the IRS. They got Capone when the FBI couldn't
Mr.Floaty
Politicker
0
BDR
Do they ask questions? Are they curious? Are they driven to learn? Things like that
Cyberjarre
Politicker
0
BDR
Curiosity. Sounds fanciful, but it's a leading indicator that I will have a rep that wants to ask questions with the genuine desire to know the answer.

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