I hate Hate Paying Taxes - Get your Write-offs in line



After paying about 35k in estimated taxes, I'm getting 5k back :) Love my sheisty little Indian CPA!
 
I'm so bookmarking this. Good info.

I've used the solo 401k for the past few years and saved a load, but you have to pay taxes on it when you withdraw.
 
yo i made 30k, i got back $500. FML. getting it double checked, thats pretty much CPA theft/neglect..something..
 
If you park it in a 401(k), you cannot touch it until the age of 59.5.
If you withdraw anytime before that, you have to pay taxes AND a penalty of 10% (unless exceptions apply).

Just food for thought.
 
zxcvb said:
If you park it in a 401(k), you cannot touch it until the age of 59.5.
If you withdraw anytime before that, you have to pay taxes AND a penalty of 10% (unless exceptions apply).

Just food for thought.
Click to expand...

You can use it for medical, first time home purchase, school, few other things before then. Penalty free

edit: not sure if that applies to 401k as I use a sep ira
 
just got mine done.. that was seriously painful.. i love how i work so hard just to give a huge chunk of it away
 
zxcvb said:
If you park it in a 401(k), you cannot touch it until the age of 59.5.
If you withdraw anytime before that, you have to pay taxes AND a penalty of 10% (unless exceptions apply).

Just food for thought.
Click to expand...

Agreed. Basically, if you sock away half your income every year, you can get away with not paying taxes. Isn't necessarily a bad thing, but if you're looking to spend that money on business improvements, then you're kind of screwed for the above mentioned penalties.
 
My country (Belgium) sucks when it comes to taxes. 34% on your profit when you leave it in your company and 60% or more if you take it out as a loan. There are other options, but those are either for small amounts only or you have to wait until you're old (and then still have to pay a big amount). Luckily, there's something called business expenses.
 
Eh, while paying taxes sucks if you business expense everything you're going to be reporting some shitty income. now most probably don't care but if you ever intend to buy a house, sell your business, bring on a partner, get VC funding.....they look at this stuff. I had fun with deductions a few years ago and it f'd me in the a.

dreamache, thats about right on especially if you're paying self employment taxes (15% of net).
 
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