The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Salaried & no-deductions = SOL? Date:  8/30/2001  1:36 PM
Author:  cIRCitmage Number:  53703 of 127747

so I've spoken to several CPA's at this point ... all of them have said there is very little I can do to reduce my taxes (51% Marginal Tax Rate!!!!) ... a little background on me ... I earn a respectable salary, work in NYC, have incentive and ESOPs (in a decent Fortune 50 company), live in CT, single, rent ... I was always under the impression that owning a house would be good, but all the CPA's I spoke with said "not really" and then they go off on how depreciation and mortgage interest deductions only offset other expenses ... OK I get it but here's where I need help ... My primary goal is to build more equity, diversify my assets (currently equity only) and secondly save on taxes ... I have NO debt, have the six month cushion in a MM account, have maxed my contributions to 401k & IRA (I'm over the income limit for the Roth), don't have a margin account, invest via dollar-cost averaging in a basket of excellent cos (that are in the downdraft right now) ... match what I put into the individual stocks into SPY and DIA ... I anticipate being in my job for some time (10+ years if they don;t fire me beforehand) ... am ready to buy ... I've done all the rent vs. buy calculators and they vary based on assumptions of Rate of Return on investments (12%> rent, >12% buy) ... I'm not out off by prop taxes/maint/fees/points (relocation bene takes care of much of this) ... advice?
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us