Question : What are some additional tax shelters I can use when my 401k and ira donations are up to their limits.?
I'm about to receive $100K from an investment and I want to pay the least amount of taxes on this money. I've already maximized my 401K and IRA contributions. What are some other options?
- asked by vaughnw3
All Answers:
Answer #1
If you own your property and its in an area whereyou have some wildlifecontactwildlifelandtrust.orgthey can arrange foryou to have huge tax breaks on your property andhome if you leave it as a reserve for wildlifewhen you pass on
- answered by tricia r
Answer #2
Tricia I think he wants to keep the money notdonate it.Check int trust funds for your children.At least keep it in the family. College tuitionsin some states can be paid in advance at todaysrate
- answered by OWC M
Answer #3
Hold on, you may have a problem with your IRA. Ifyou are receiving this money in 2007 you have toomuch income to deduct your contribution to atraditional IRA. If your adjusted gross income isover $85,000 no deduction is allowed. Yourtraditional IRA will not result in any deductionfor you. If you have a spousal IRA, you will notget any deduction for that either.You may alsohave too much income to invest in a Roth IRA. Ifyour adjusted gross income is over $110K ($160 ifmarried) then no contribution to a Roth IRA isallowed.By the time you receive income, it is toolate to tax-shelter it. The investment itselfwould need to be tax-sheltered in order to reducethe tax on its income. You could try to receivethe money part in 2007 and part in 2008 andperhaps retain deductibility of your traditionalIRA or be able to invest in a Roth IRA. After youreceive the money, if you want to shelter theincome from this money, you can invest in tax-freemunicipal bonds. You could defer taxes on theincome if you invest in certain treasurysecurities or purchase a tax-sheltered annuity. You could establish 529 plans to save for highereducation expenses. Income from these plans aretax free to the recipient. However there is nocurrent tax deduction.You can switch your healthinsurance to a high deductible policy and makecontributions to a health savings account.
- answered by ninasgramma
Answer #4
invest in real estate - you don't pay tax on gainsuntil you sell - plus you make money on therentals - or tax free municipal bonds/mutual funds
- answered by Dr. Deth
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measure and fulfill your financial needs
