Had a year that turned out better than expected. Ill probably lose all my Obama Care Tax credits for me and the wife that will be about $23K to pay in just for the premium s.. My AGI number is pretty high and i can spend /purchase to lower that but I don't want to be wasteful . I would prepay next years crop needs. and maybe by 1 piece of equipment . I was wondering how hard you work to get your income tax down or do you just bite the bullet .
Posted Yesterday, 06:13 AM
I do all I can to legally get my tax liability manageable. Pre-purchase inputs is a very good way to reduce your liability as you stated. As poorly and reckless as our government spends money, I am not going to give them more to waste than I must.
Equipment/buildings is another way to reduce liability.....and hopefully make your life more enjoyable by reducing your work load.
- endrow, stack em up and Uphayman like this
Posted Yesterday, 07:15 AM
- Vol and endrow like this
Posted Yesterday, 09:29 AM
My CPA has me keep income close to same every yr.Also maximize a tax bracket.
Do a pretax Dec 1 so can decide how to juggle income/expense into what yr.
If the dems get there way they will want more taxes to pay for free stuff for others so maybe better off keeping income in this yr??
- Vol, endrow, stack em up and 1 other like this
Posted Yesterday, 07:58 PM
IMHO, there's more than a couple of things to keep in mind.
The tax law change that happened just a couple of years ago, will expire soon (2026 or sooner). As Cy mentions utilizing the complete existing tax brackets is a very good strategy. The only thing that might have a negative impact to that strategy is IF tax rates are reduced (which I think will have a snowball's chance in h... of happening). The downside is naturally your insurance cost could increase.
I would set down and run a 'what if', using several scenarios, looking at what your individual bottom-line looks like, not just now but in the future. Eg, lowing income now, paying less for insurance verses higher income, higher insurance costs AND higher taxes in the near future. IIRC, you're heading towards the SS FRA (Full Retirement Age, maybe age 67). Deferring income until then can change the amount of SS that is taxable income (along with possibly paying more for Medicare, starting at age 65).
Even things like increasing the corporate income taxation rate, IS going to effect things (cost of goods). So buying 'things' now, could be cheaper, should be included in your analysis. For those folks who don't think the corporations are going to pass increased taxes on, I got a bridge in the middle of the desert to sell you.
There isn't a one size fits all in this case, unfortunately.
- endrow likes this
Posted Yesterday, 09:03 PM
My favorite is depreciation/resale. Depreciate the devil out of equipment, then trade up. Rquipment has been holding value a lot lately.
Posted Today, 08:07 PM
As always your CPA will know your situation and give good advice hopefully. And on that front I’d find one that knows how to have a balanced approach of minimizing taxes while looking out for your overall long term financial goals. Some CPAs focus on one thing, their clients paying $0 tax liability no matter what the cost.
Posted Today, 09:02 PM
0 user(s) are reading this topic
0 members, 0 guests, 0 anonymous users