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What to buy at tax time to lower your income.

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What to buy at tax time to lower your income.

Old 01-08-2015, 11:23 PM
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Default What to buy

Well what?

Last edited by ProppedUp; 09-30-2016 at 04:08 AM.
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Old 01-09-2015, 04:36 AM
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Fortunately for me, I don't have that problem. You should just resolve to make less money.
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Old 01-09-2015, 06:34 AM
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Any legitimate business expense will do but here are some other ideas

Annual meeting of share holders.
Company holiday party
Stock up on X product. Good from toilet paper to widgets, coffee for the office. Whatever.
Computers, phones, tablets
Pre pay cell phone or Internet or other business utilities
Pay insurance bills for the entire term
Pre pay a consultant or a service contract.
Book and pay for business travel
Client gifts
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Old 01-09-2015, 06:53 AM
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What if you don't own a business - what options are there to lower your taxable income other than 401K and IRA?

Seems like if you don't have kids and work hard and save money you get penalized.....
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Old 01-09-2015, 08:00 AM
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Originally Posted by oceanfsh View Post
What if you don't own a business - what options are there to lower your taxable income other than 401K and IRA?

Seems like if you don't have kids and work hard and save money you get penalized.....
Start one. It can be nearly anything. If you want ideas, let me know.
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Old 01-09-2015, 08:04 AM
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If your really having those issues why not set up a SEP to stash away some money for retirement. Have you maxed out your IRA?
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Old 01-09-2015, 08:06 AM
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Originally Posted by crazybeard View Post
Start one. It can be nearly anything. If you want ideas, let me know.
Make sure it is actually a business and not a hobby.
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Old 01-09-2015, 08:10 AM
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Originally Posted by Trollin4Tuna View Post
Make sure it is actually a business and not a hobby.
Absolutely. It will need income. Almost anyone can have a legitimate side business of some sort if they just wanted to and are willing to put in the effort.

What is ironic to me, is the ones who have a side business (a lawn care guy I know comes to mind) and wants to keep everything off the books. He's missing the picture of being able to deduct a lot of stuff - mileage or auto expenses, trailer, tools, business phone, etc etc.
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Old 01-09-2015, 10:16 AM
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It always surprises me when business owners go buy a new truck and say, "I needed a tax write off for end of year" Why are you gonna go spend $50k to save $15K... doesn't make much sense to me
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Old 01-09-2015, 10:25 AM
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Originally Posted by amofgreenville View Post
It always surprises me when business owners go buy a new truck and say, "I needed a tax write off for end of year" Why are you gonna go spend $50k to save $15K... doesn't make much sense to me

If you were making a payment on a truck and swapping just extended your time making the payment but did not cost you any more over the course of that year or two, than you could be reducing your capital outlay over a short period of time with that truck purchase compared to continuing to make your regular payment and paying more in taxes. In the long run it still cost you money for sure but if you like new trucks and factor in the way they hold their value in recent years.......you can talk yourself into crazy stuff!!

It sure seems at times that it would be easier to go work for someone and have withholdings/refunds/etc. Trying to deal with the variations of taxes in a business/LLC drives me nuts sometimes!

Just my two cents worth.
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Old 01-09-2015, 10:32 AM
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Originally Posted by amofgreenville View Post
It always surprises me when business owners go buy a new truck and say, "I needed a tax write off for end of year" Why are you gonna go spend $50k to save $15K... doesn't make much sense to me
If you plan to do it anyway then waiting for the next year that truck would cost you 65k. Or more depending how your company is set up and how much you earn. S corp with individual in the top bracket in a state that charges income tax could be getting darn close to 45-50% taxation.
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Old 01-09-2015, 10:49 AM
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Originally Posted by ProppedUp View Post
Ok so my last thread about starting a truly world class charter boat company on a small lake sank faster than a Bayliner in a hurricane I figured I'd start another thread.

What did all you business owners buy at the end of the year as a tax write off?

I'm guessing trucks and equipment? What are some other interesting write offs?
I feel your pain as I see it with planes all the time.

I was wondering myself if I could sponsor a fishing team to write off gas, bait, supplies, etc. I could write my company name on the side for advertising.
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Old 01-09-2015, 11:06 AM
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Originally Posted by ndb8fxe View Post
I feel your pain as I see it with planes all the time.

I was wondering myself if I could sponsor a fishing team to write off gas, bait, supplies, etc. I could write my company name on the side for advertising.
Do you fish in tournaments where sponsorship are common? Do you have income from tournaments winnings? Then you *might* have a case but you'd need to talk to your accountant.
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Old 01-09-2015, 11:32 AM
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Originally Posted by crazybeard View Post
Absolutely. It will need income. Almost anyone can have a legitimate side business of some sort if they just wanted to and are willing to put in the effort.

What is ironic to me, is the ones who have a side business (a lawn care guy I know comes to mind) and wants to keep everything off the books. He's missing the picture of being able to deduct a lot of stuff - mileage or auto expenses, trailer, tools, business phone, etc etc.
The business can lose money, or reinvest money, and show no profit or a loss for a few years (especially if there's another source of revenue). Then you can close it down for a more substantial loss.

Then you can start a new business with a different name.
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Old 01-09-2015, 11:41 AM
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Originally Posted by Jus Teasin View Post
The business can lose money, or reinvest money, and show no profit or a loss for a few years (especially if there's another source of revenue). Then you can close it down for a more substantial loss.

Then you can start a new business with a different name.
Theoretically yes. But I wouldn't be trying that in a situation where someone isn't actually trying to create income with a boat and using it just for personal use. Could someone get away with it? I'm sure plenty already have. Would it be something that I think is worth the risk - not for me. Boats are a pretty big red flag on the deductions schedule according to my accountant.
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Old 01-09-2015, 03:06 PM
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I have a rental apartment and have been boringly conservative come tax time. Would be great if I could justify a truck purchase to maintain the unit. Tough to keep a straight face though.

where would one go to get a better understanding of the opportunities for a "business" like renting an apartment. I just a boring old salary guy when it comes to taxes.
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Old 01-09-2015, 03:15 PM
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Originally Posted by amofgreenville View Post
It always surprises me when business owners go buy a new truck and say, "I needed a tax write off for end of year" Why are you gonna go spend $50k to save $15K... doesn't make much sense to me
Cashflow. Truck can be financed, taxes cannot.
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Old 01-09-2015, 03:16 PM
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I went thru and prepaid as much stuff as I could. But, it's a double edged sword if we do good again in 2015. Uncle Sugar is going to eventually get your money.
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Old 01-09-2015, 03:21 PM
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I don't need a write off, I need a write on!!
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Old 01-09-2015, 04:31 PM
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Originally Posted by crazybeard View Post
Do you fish in tournaments where sponsorship are common? Do you have income from tournaments winnings? Then you *might* have a case but you'd need to talk to your accountant.
No, No, and No. I can barely catch a fish, but enjoy the hell out of trying. In order to be a team to you really need to enter contests? I likely will never enter a "real" tournament, maybe just a charity one here or there.
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