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Thread: Lump Sum Advice
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Old 09-02-2015, 08:08 PM
Admirals Club Admiral's Club Member
Join Date: Jul 2015
Location: TX and Louisiana
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ah , the bad news , is that you need to decide how to take the money, before you sign the agreement.

If as you said, it is on a paycheck, it is ordinary income, and that's hard to tax shelter, as you have no basis or expenses to deduct against it, no ongoing enterprise to depreciate it against.

If however, you had had a business that lost money every year ( on paper anyway ), you could be accumulating losses for a couple years and lowering the sting of the tax bite.