Tax Strategies

[Tommy_Dolitte]

Good morning -

Ideas on tax strategies for middle-aged single folks?

Thanks,
TD

 

[unclemick]

I know a guy - 40ish, recently divorced, two kids, who left last week for Iraq - big bucks and certain tax breaks after -a year? - although I'm not tax savy in that area.

 

[cute fuzzy bunny]

Pay none if possible.

Pay as little as possible otherwise!

 

[TheOtherFrankSinatra]

Ideas on tax strategies for middle-aged single folks?

Thanks,
TD

I think people piss their pants too much about the subject. Basic tax strategy is: "If you owe, pay"

I regard taxes like "danger". We should always be vigilant and observant and certainly avoid danger, but quite frankly, I don't run around looking over my shoulder all the time trying to avoid "DANGER!!"

I do, however, worry about and take positive action vis a vis what I refer to as "The Big Chunks"

Worried about crime? OK, I move to a better neighborhood, or apartment building with a big locked front door. I DON'T move to The South Bronx or East LA.

Stay away from known high-tax areas if you can. NY, CA. , PA, a few others.

Move a few miles from town where property taxes are a bit lower than downtown or the "Toney White Suburbs".

As far as taxes on your investments... that's more of a Rubic's Cube. I have found it much easier and (therefor better) to not let the tax paying tail wag the investor dog. I don't do anything dissolute and get my ass into tax traps but I don't jump through any particular hoops just to "dodge" a particular tax or lower my bill by some ridiculous fraction.

The "tax braggers" are mostly either tying their own hands in order to dodge a tax and therefore letting somebody else make a descision for them OR... they are like the neighbor/brother-in-law/old High School friend who's faking it -not making it. They will tell you about the "great deal" they got on a new car and how they really "took that salesman the salesman for a ride" when they can get a genuine plastic simulated wood gear-shift knob thrown in at "no extra cost."

 

[TheOtherFrankSinatra]

By the way, I am 46 and single, so I understand and thoroughly relate to your concern about "tax rape"

 

[unclemick]

I agree with wag the dog. I too am single and paid the appropriate taxes during my working years.

1. maxed 401k and trad IRA (no Roth then). Avoided variable annuties.

2. Took the depreciation schedules then availible during my rental real estate days.

3. Tryed to match gains and losses in taxable stocks where it made sense.

4. House(fish camp) never had a mortgage.

If I learned anything(which is debatible) - evaluate each investment as an investment first and then SWAG the effect of taxes.