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Financial Planning / Tax Strategies
|Subject: Re: Tax strategies for high W2 earners?||Date: 3/1/2013 2:53 PM|
|Author: ptheland||Number: 117921 of 124467|
Was wondering if there are any tax strategies that high income earners -whose earnings come primarily through w2 income- can use?
A longer term strategy would be to save like mad and invest the savings. That should accelerate the date when the income from your savings is larger than your spending. At that point, quit working. You will then cut out your spending on social security tax, and potentially medicare taxes as well. And since some investment income (like qualified dividends and long term capital gains) are taxed at lower rates, you would also save on income taxes as well.
Wait. Never mind. I'm starting up this great deal. I'll use the money you invest with me to purchase CDOs tied to the VIX to do a LBO of a growing M&A practice. We'll take the EBITDA from the M&A and send that to an offshore SPE in the Caymans to save on taxes. Bottom line - you'll show a 100% ROI on a monthly basis, plus you'll get real, usable tax writeoffs for any money invested.
--Peter <== who has never had anyone take him up on the offer of creating bad debt writeoffs, so is trying a new marketing technique.
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