storing assets so they don't show up on income tax forms

[pb4uski]

I'm impressed! Is school open?

2/3rds of the income was qualified dividends or long-term capital gains that are taxed at 0% if your total income is in the 15% tax bracket or lower. The remaining 1/3rd was largely offset by itemized deductions and exemptions... so ordinary taxable income was only about $5k and the little tax on that was largely offset by foreign tax credit... leaving a small residual net tax due.

PS. I actually read the wrong line in my prior post... the net tax due was $187, not $356.

 

[Blue Collar Guy]

I know im a dope, im willing to try to learn. i got punched in the throat for about 40 THOUSAND.it was worse last year i think it was 49 Large. i try to repress these things. The thought of this is giving me heartburn, i would look at the returns to give proper numbers, but the bride is near me .If she sees me looking at them again she will slap me hahhahaha

 

[ERD50]

2/3rds of the income was qualified dividends or long-term capital gains that are taxed at 0% if your total income is in the 15% tax bracket or lower. The remaining 1/3rd was largely offset by itemized deductions and exemptions... so ordinary taxable income was only about $5k and the little tax on that was largely offset by foreign tax credit... leaving a small residual net tax due.

PS. I actually read the wrong line in my prior post... the net tax due was $187, not $356.

Much more impressive than a claim of income tax of $2k on 60k income, from someone who has bragged that they cheat on their taxes!

-ERD50

 

[pb4uski]

For me, a totally legit 0% tax rate on equities is a much better after-tax return than real estate after depreciation recapture or playing a tax evasion game for gains on other asset classes like precious metals. Much easier to sleep at night.

Actually, my effective tax rate on international is negative as the small tax on non-qualified dividends is more than offset by foreign tax credit.

 

[Hermit]

I know im a dope, im willing to try to learn. i got punched in the throat for about 40 THOUSAND.it was worse last year i think it was 49 Large. i try to repress these things. The thought of this is giving me heartburn, i would look at the returns to give proper numbers, but the bride is near me .If she sees me looking at them again she will slap me hahhahaha

Don't worry. Be happy.

I'll never be lower than the 25% tax bracket and will move to the 28% bracket some time after RMDs. That's OK. I didn't pay taxes on that income all the time I was working. I like to look at it as a problem a lot of people would like to have.

 

[Dash man]

I guess I'm really a dummy. We paid over six figures in Federal taxes and five figures in state taxes last year. But we just followed the law. It hurt, but I sleep well at night. DW still got a W-2 beefed up significantly by exercised stock options. Sadly the government won't see us as that generous a gift horse this year. But we still do quite well even with us both retired. Still don't plan on hiding anything from the tax man though.

 

[NYEXPAT]

I cannot be sure, but I think all bearer bonds have matured.... it was a long time ago when they said you could not issue them anymore...

It was 1982 when the US said you could no longer issue new one's. They still exist (may not pay interest) and are perfectly legal to own. Many of them are rumoured to be in banks in Switzerland, hence the ongoing fed lawsuit against UBS in 2015.

Many countries still issue them, so they are available in Central and South America as well as parts of Europe. most notably Luxemburg.

Most people are also unaware of Bearer Shares which are basically unregistered stock in a company that the holder can present to the company to collect the dividends in cash with no record.

Nobody, has mentioned "Bitcoin" and other crypto's that some of us have.

 

[nun]

Just Zillowed my house and it's worth $950k and my ROTH is now over $100k. The ROTH funds will never appear on an IRS return and the money stored in the house will only appear if I sell.

 

[foxfirev5]

Income I can manage and pay the taxes owed. However, I see a lot of assets hiding out there and wonder what the future underground economy may look like. Two different topics.

 

[Blue Collar Guy]

Don't worry. Be happy.

I'll never be lower than the 25% tax bracket and will move to the 28% bracket some time after RMDs. That's OK. I didn't pay taxes on that income all the time I was working. I like to look at it as a problem a lot of people would like to have.

Thank you i feel a bit better.

 

[evilanne]

The ROTH funds will never appear on an IRS return

You should get 1099R when you take any distribution from the Roth--the brokerage will report to IRS so it should be included on your return even if it is not taxable..

 

[ESRwannabe]

Quick question maybe...

i know that if you buy savings bonds, they only show up on your income tax when you cash them in. What other investments could you store assets in that don't create paper trails for tax forms until they are sold?

Physical gold... bury it in your yard, and make a secret treasure map for bonus points.

 

[Alan]

You should get 1099R when you take any distribution from the Roth--the brokerage will report to IRS so it should be included on your return even if it is not taxable..

Correct. It shows up on line 15 I believe with any other IRA distributions, 15a shows all IRA distributions and 15b shows the taxable amount.

 

[sengsational]

Quick question maybe...

i know that if you buy savings bonds, they only show up on your income tax when you cash them in. What other investments could you store assets in that don't create paper trails for tax forms until they are sold?

Thanks. That is what I thought Gold, other "hard assets", I hadn't considered the annuity. I was trying to help someone through some discovery documentation, where he thinks money was taken by his brother from the estate.

From the last 3 years tax returns and mothers bank records, I see no asset transfers, and nor anything on the brothers taxes that couldn't be explained.

Thanks again for all the ideas. My advice was to forget about it if he did it you will have a hard time proving it.

"Money" taken from the estate should show up as a debit on the mother's bank or brokerage statements. But do you presume that the "money" was not held at an institution?

If the mother had something of value not held at an institution and the brother cashed it in, well, like you say, hard to prove. He'd be an idiot to make a big purchase that showed on his taxes. But as seen here in this thread, there are lots of great options for investment that don't get reflected on a tax form. There are even some that don't have a paper trail (for instance, just leaving whatever he stole in whatever form he found it...i.e. if that "something of value" was a mattress stuffed with money).

 

[Winemaker]

As far as ideas for hiding assets, I know of folks buying antiques or buying jewelry at yard sales or estate auctions. Don't know if they are making a lot of money, but a bag of diamond rings is a bag of diamonds and gold rings....

 

[calico1597]

It's my understanding that zero-coupon municipal bondsare not taxable. Guess we'll find out this next year. I sold some to purchase our new winter home.

 

[RE2Boys]

It's my understanding that zero-coupon municipal bondsare not taxable. Guess we'll find out this next year. I sold some to purchase our new winter home.

I believe the sale of the zero coupon bonds is a capital gain transaction, you may have a gain or loss on the sale.

Of course, your basis would need to be adjusted by the accrued, non-taxable, interest earned over the period of ownership.

 

[pb4uski]

RE2Boys is correct. You may have a capital gain or loss for the difference been the proceeds and your basis. See https://www.thestreet.com/story/910564/2/do-zero-coupon-muni-bonds-ever-generate-tax-bills.html