Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: yobria Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121572  
Subject: Re: tax deductions Date: 5/30/2003 5:57 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 3
I hear you. It's only natural to feel a sense of loss when you're an empty nester and all those nice deductions go away. Suggestions:

1. Move to a low tax state. State income and sales tax rates vary widely, and the money you save here can all be invested.

2. Spend less. If you spend less and invest more now, you won't have to earn as much, or pay as much taxes later. Further, much of your investment gains will grow tax deferred and be taxed at more favorable rates.

3. Get divorced. If both of your are working, you'll likely pay less taxes as two single people.

4. Sell a losing investment (and immediately buy a similar one to maintain your asset allocation). You'll get a capital loss you can deduct against your other cap losses, or your regular income up to $3,000. You can carry the losses forward, too. This is easy money.

5. Max out your IRAs, obviously.

6. Donate to charity.

7. Start a side business.

Nick

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

The Story Behind the Story
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement