Do you make good money and pay little in taxes??? - GoFuckYourself.com

slapass · 04-20-2008, 04:21 PM

Please share as I get killed every year on this stuff. I have a LLC which allows deductions etc. but I cannot say I have any good way to reduce to my taxes.

Lamis · 04-20-2008, 04:26 PM

Big money (A) - Big Taxes (B) = E

Small money (C) - Small Taxes (D) = E

The result is the same whatever you choose.

After Shock Media · 04-20-2008, 04:39 PM

You need a CPA to go over your shit and explain what would be best for you in your situation.

jscott · 04-20-2008, 04:39 PM

Quote:

Originally Posted by Lamis

Big money (A) - Big Taxes (B) = E

Small money (C) - Small Taxes (D) = E

The result is the same whatever you choose.

u be smokin dat crack

SilentKnight · 04-20-2008, 04:42 PM

In Canada, RevCanada allows for one 'corporate retreat' deduction each year which we always take full advantage of.

Plus, its surprising how many 'studio props' are also considered as write-offs.

Fracturing the corporation into two separate and legal entities allows one to "rent or lease" things to the other (i.e. property, commercial space, etc.) which can make for some creative expense deductions (within legal limits).

Then there's always 'shareholder loans' that can be utilized in numerous ways.

bDok · 04-20-2008, 04:47 PM

I'm not in your pocket so I can't see what you already are doing. Sounds to be like there could be more done. I had set aside a lot more then what my accountant came back with in the end. I was very happy.

pocketkangaroo · 04-20-2008, 04:48 PM

You might want to look into switching to an S-Corp so that your company would pay half the payroll tax as an expense. Could save you like $4500 a year.

slapass · 04-20-2008, 04:56 PM

Quote:

Originally Posted by pocketkangaroo

You might want to look into switching to an S-Corp so that your company would pay half the payroll tax as an expense. Could save you like $4500 a year.

There we go that is cool. Not sure if my accountant is super conservative or what but he said we could not do company cars. There was no justification for it.

morningstar · 04-20-2008, 05:00 PM

Quote:

Originally Posted by Lamis

Big money (A) - Big Taxes (B) = E

Small money (C) - Small Taxes (D) = E

The result is the same whatever you choose.

I believe on this equation

slapass · 04-20-2008, 05:02 PM

Quote:

Originally Posted by After Shock Media

You need a CPA to go over your shit and explain what would be best for you in your situation.

Thanks guy. Of course I have a CPA, tax lawyer and a state tax lawyer. Pretty decent guys but lets face it, do they now everything and do everything. Nope. No one does.

Peaches · 04-20-2008, 05:06 PM

I pay myself a relatively small amount in salary and the rest is unearned income. That doesn't help my state/federal taxes, but does allow me to pay a small amount of SS taxes, take the money I WOULD be paying in SS taxes and invest it myself. I figure there's not going to be any SS when I retire anyway so I'm paying as little as I can into it.

MikeSmoke · 04-20-2008, 05:11 PM

Corporate cars: depends on how conservative your accountant is - some say it's a red flag. There are many ways to do it, though.

Too much taxes: you're more limited with an LLC (no pun intended) because it's a "pass-through" entity that also can't set up some of the benefit programs that a C-corp can.

If you just want to take the money and spend it on stuff, you may be out of luck. If you want to take the money and invest it in retirement programs, etc. - you may need to change your structure, and if your CPA isn't sure how or doesn't want to do it, you may need to change accountants. A lot of what I make goes right into retirement accounts such as SEP-IRAs or 401Ks, more goes into insurance-based investment products --- there are a lot of things you can do if (and I'm not implying that *you* do, just that many people here do) you don't want to just take the excess money and spend it on cars, drugs and hookers ;)

Usual disclaimer: not an accountant or lawyer, consult professionals, etc.

slapass · 04-20-2008, 05:15 PM

Quote:

Originally Posted by MikeSmoke

Corporate cars: depends on how conservative your accountant is - some say it's a red flag. There are many ways to do it, though.

Too much taxes: you're more limited with an LLC (no pun intended) because it's a "pass-through" entity that also can't set up some of the benefit programs that a C-corp can.

If you just want to take the money and spend it on stuff, you may be out of luck. If you want to take the money and invest it in retirement programs, etc. - you may need to change your structure, and if your CPA isn't sure how or doesn't want to do it, you may need to change accountants. A lot of what I make goes right into retirement accounts such as SEP-IRAs or 401Ks, more goes into insurance-based investment products --- there are a lot of things you can do if (and I'm not implying that *you* do, just that many people here do) you don't want to just take the excess money and spend it on cars, drugs and hookers ;)

Usual disclaimer: not an accountant or lawyer, consult professionals, etc.

my sig implies a different life... but I still have some extra. Not sure what the tax rate is on C-corp but maybe I could take a lot less salary and use the c-corp to invest.

Peaches that is pretty neat. I do some of that even with a LLC. You have salary and you have income. And yeah it is cool.

tony286 · 04-20-2008, 05:15 PM

a conservative accountant is a good thing. I had friend who went thru a audit it wasnt a good thing.

halfpint · 04-20-2008, 05:17 PM

Two words....Money....Laundering

MikeSmoke · 04-20-2008, 05:34 PM

Quote:

Originally Posted by slapass

my sig implies a different life... but I still have some extra. Not sure what the tax rate is on C-corp but maybe I could take a lot less salary and use the c-corp to invest.

It's 15% on the first 50K (obviously, your salary doesn't count in the 50K - that's a corporate expense) - and if you find places to "spend" the rest, getting under 50K isn't impossible.

Disclaimer: not an accountant, etc.

MikeSmoke · 04-20-2008, 05:35 PM

Quote:

Originally Posted by tony404

a conservative accountant is a good thing. I had friend who went thru a audit it wasnt a good thing.

I didn't mean to imply it's a bad thing

GrouchyAdmin · 04-20-2008, 05:36 PM

No, and no, respectively.

CaptainHowdy · 04-20-2008, 05:54 PM

Quote:

Originally Posted by halfpint

Two words....Money....Laundering

Two others: Costa Rica...

Sly · 04-20-2008, 05:58 PM

Quote:

Originally Posted by slapass

There we go that is cool. Not sure if my accountant is super conservative or what but he said we could not do company cars. There was no justification for it.

Sounds conservative. Don't you have some real estate? Sounds like a reason for a company car to me.

I would look into a S Corp and maybe talk to some other accountants and feel them out. Small businesses have it hard enough as it is... you need someone that is willing to find every hole that they can for you.

slapass · 04-22-2008, 10:10 PM

Quote:

Originally Posted by Sly

Sounds conservative. Don't you have some real estate? Sounds like a reason for a company car to me.

I would look into a S Corp and maybe talk to some other accountants and feel them out. Small businesses have it hard enough as it is... you need someone that is willing to find every hole that they can for you.

Yeah got real estate. I need to really hit htis hard and reposition my stuff. I am getting so hammered by this it is ugly.

04-20-2008, 04:21 PM	#1
slapass Too lazy to set a custom title Join Date: Nov 2002 Location: Earth Posts: 14,622	Do you make good money and pay little in taxes??? Please share as I get killed every year on this stuff. I have a LLC which allows deductions etc. but I cannot say I have any good way to reduce to my taxes.

04-20-2008, 04:39 PM	#3
After Shock Media It's coming look busy Join Date: Mar 2001 Location: "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn". Posts: 35,299	You need a CPA to go over your shit and explain what would be best for you in your situation. __________________ [email protected] ICQ:135982156 AIM: Aftershockmed1a MSN: [email protected]

04-20-2008, 04:47 PM	#6
bDok Confirmed User Join Date: Feb 2005 Location: SD/OC/LA Posts: 1,917	I'm not in your pocket so I can't see what you already are doing. Sounds to be like there could be more done. I had set aside a lot more then what my accountant came back with in the end. I was very happy. __________________ =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= Warriors come out to plaAAaayyy! =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=

04-20-2008, 05:11 PM	#12
MikeSmoke Confirmed User Join Date: Nov 2002 Location: SoCal Posts: 3,233	Corporate cars: depends on how conservative your accountant is - some say it's a red flag. There are many ways to do it, though. Too much taxes: you're more limited with an LLC (no pun intended) because it's a "pass-through" entity that also can't set up some of the benefit programs that a C-corp can. If you just want to take the money and spend it on stuff, you may be out of luck. If you want to take the money and invest it in retirement programs, etc. - you may need to change your structure, and if your CPA isn't sure how or doesn't want to do it, you may need to change accountants. A lot of what I make goes right into retirement accounts such as SEP-IRAs or 401Ks, more goes into insurance-based investment products --- there are a lot of things you can do if (and I'm not implying that you do, just that many people here do) you don't want to just take the excess money and spend it on cars, drugs and hookers ;) Usual disclaimer: not an accountant or lawyer, consult professionals, etc. __________________ icq: 541-739-92

04-20-2008, 05:17 PM	#15
halfpint GFY's Halfpint Industry Role: Join Date: Jun 2007 Location: UK Posts: 15,223	Two words....Money....Laundering __________________ Get FREE website listings on Cryptocoinshops.net

04-20-2008, 04:26 PM	#2
Lamis So Fucking Banned Join Date: Sep 2007 Posts: 961	Big money (A) - Big Taxes (B) = E Small money (C) - Small Taxes (D) = E The result is the same whatever you choose.

04-20-2008, 04:42 PM	#5
SilentKnight Megan Fox's fluffer Industry Role: Join Date: Oct 2005 Location: shooting pool in Elysium Posts: 24,818	In Canada, RevCanada allows for one 'corporate retreat' deduction each year which we always take full advantage of. Plus, its surprising how many 'studio props' are also considered as write-offs. Fracturing the corporation into two separate and legal entities allows one to "rent or lease" things to the other (i.e. property, commercial space, etc.) which can make for some creative expense deductions (within legal limits). Then there's always 'shareholder loans' that can be utilized in numerous ways.

04-20-2008, 04:48 PM	#7
pocketkangaroo Confirmed User Join Date: Jan 2005 Location: Chicago, IL Posts: 8,452	You might want to look into switching to an S-Corp so that your company would pay half the payroll tax as an expense. Could save you like $4500 a year.

04-20-2008, 05:06 PM	#11
Peaches Old broad Join Date: Oct 2002 Location: Away Posts: 13,933	I pay myself a relatively small amount in salary and the rest is unearned income. That doesn't help my state/federal taxes, but does allow me to pay a small amount of SS taxes, take the money I WOULD be paying in SS taxes and invest it myself. I figure there's not going to be any SS when I retire anyway so I'm paying as little as I can into it.

04-20-2008, 05:15 PM	#14
tony286 lurker Industry Role: Join Date: Aug 2002 Location: atlanta Posts: 57,021	a conservative accountant is a good thing. I had friend who went thru a audit it wasnt a good thing.

04-20-2008, 05:36 PM	#18
GrouchyAdmin Now choke yourself! Industry Role: Join Date: Apr 2006 Posts: 12,085	No, and no, respectively. __________________ AIM: GrouchyGfy