burrito

W2

Any reps who have crushed it know of good strategies to mitigate taxes on commissions? Doesn't seem like there is much out there for w2 wage slaves. Of course you can move to a no state income tax area, but that isn't always an option. I've heard of deferred commissions. Getting a real estate license to write off expenses against your W2 income, but nothing that seems that practical. Tax code really favors entrepreneurs and real estate owners and mf's all of us w2 wage slaves

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unclespacejam

Politicker

ur dad’s brother

Honestly just be thankful you don’t live in Canada. Our dollar is shit AND we get taxed so much more.

Example:

- Imagine every dollar you earn is worth $0.30 less
- overall OTE’s are also 10-25% lower
- if you’re an enterprise ae you’re probably getting a 50/50 split of $100K/$100K
In Toronto you’d pay an average tax rate/ effective tax rate of 32.88% on that $200K OTE, then give another $3867.50 to Canada pension plan and another $1049.12 to employment insurance

Leaving you with $129K over the year

THEN pay 13% sales tax on about anything you buy aside from rent/ mortgage/ most groceries

oldcloser

Arsonist

💀

Yeah, but don’t you get like 36 weeks off if you know someone who got pregnant?

jefe

Arsonist

🍁

DON'T FORGET HOUSING!! Renting or buying you FUCKED either way.

But the healthcare ain't all that bad and nobody's going broke because of it.

unclespacejam

Politicker

ur dad’s brother

Goddamn right dog. If you’re in Toronto or Vancouver, with a family bet your ass that you’re paying AT LEAST $30k-$50k a year in rent, and even more if you bought in those cities

eusales

Contributor

Senior Account Executive

Try moving to Europe. 21% sales tax on anything you buy + 45% tax rates over 120K EUR.

unclespacejam

Politicker

ur dad’s brother

Bruh are you aware the euro is worth 45-50% more than CAD on any given day? Lmao

jefe

Arsonist

🍁

@eusales plus there are a ton of places in Europe you can buy a literal castle for what you'd pay for a shitty bungalow in a not-so-desirable area in Toronto

unclespacejam

Politicker

ur dad’s brother

OHHHHHH CAAAANAAADAAAAAAA

vet

Catalyst

Senior SDR

1st world problems that we can agree on

antiASKHOLE

Tycoon

Bravado's Resident Asshole

I mean... it evens out over the year, are you getting slammed that much on your commission that it really matters?

CuriousFox

WR Officer

🦊

That's what I wanna know 👀🍿

Pachacuti

Politicker

They call me Daddy, Sales Daddy

You can ask if your company will defer wages to the next year - I have been in a company which did that. I have heard of people who will go 1099 or independent contractor for tax reasons. You could create your own LLC, but unless you have a tax accountant helping you, that's an easy way to get red flagged.

medhardwaredr

Opinionated

Director of Sales NA

Have client pay you cash under the table, sandbag crm opportunities til end of q4, then find new gig before company finds out. Easy money:)

oldcloser

Arsonist

💀

I defer all taxes due to the IRS. Has worked for a long time.

Sunbunny31

Politicker

Sr Sales Executive 🐰

Keeps those hungry Feds off your doorstep, too.

braintank

Politicker

Enterprise Account Executive

Say more. I'm always looking for ways to get one over on Uncle Sam.

BigShrimpin

Catalyst

Account executive

buy a rental property and you can write a decent amount of taxes off but ultimately no way to escape the tax man for good

HVACexpert

Politicker

sales engineer

They will find you eventually

Justatitle

Big Shot

Account Executive

Al Capone was pinched on tax evasion, I hate it too but pay em it’s not worth the stress

NoToBANT

Catalyst

Senior Account Executive

Just did my taxes this morning
Owed a LOT lol.
I’m in a ZERO Income state.

Turns out there is very very little you can do that the IRS will be happy with

Pay your taxes sir
I would rather be hunted my the cartel than the IRS LOL

burrito

Fire Starter

amazing what my buddies that own their own biz / work in real estate are able to do when it comes to reducing taxable income. crazy that w2 worker gets smoked

SaaSsy

Politicker

Become a Scientologist

CuriousFox

WR Officer

🦊

BISH I ALREADY CANNOT BREATHE STAAAAAHHHPPPP 😆☠

poweredbycaffeine

WR Lieutenant

☕️

Welcome to America. Play the game or get played.

braintank

Politicker

Enterprise Account Executive

Capital losses and charity donations help.
Also having kids, but they also bring on extra expenses.

detectivegibbles

Politicker

Sales Director

IRS: we know how much you owe, but you need to still fill this out anyway. If you're off by $5, we're taking your spouse, first born, and you're moving to the marketing department.

HarryCaray

Notable Contributor

HMFIC

Taxation is theft.

JustGonnaSendIt

Politicker

Burn Towns, Get Money

One of my mentors once said, paying taxes is painful but it's a good problem to have. It means you were financially successful.

In all of my research and education, at best what you can do is defer the taxable event. This would be the play if you expect taxes to be lower on you at some future point.

Ways you can do this:
- 401K contributions (Traditional)
- Depreciation on investment real-estate
- Deferred compensation agreements

I'm sure there are other more convoluted strategies, but the reality is all you're doing is delaying the point at which the taxes get assessed.

Tax planning is so important in wealth building for this reason. It's a constant trade-off between in-year tax liability and future tax liability. And if you're in the US... I would gamble in the long-run on taxes going up.

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burrito

W2

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