Explain SEP and other Tax Shelters please?

[Kung Fu Steve]

Hey guys,

So I did real well this year. Showed a bit o' proft. Which also means (and I don't have to tell ya), that I will owe a decent sized tax bill this year.

With my new corporation I will show a decent sized loss, so personally it should be a wash. Business wise, well.. that's the punishment for doing well, right? Damn my superior business skills - and damn the advice you all have given me!!!

Anyways, I was recently recommended that I start a SEP IRA to create a partial tax shelter. Now I don't quite understand all of it so I'd like somebody to break that down if you could. A SEP is not real different then a 401k, correct? Where as, I can put money in tax-free but when I take it out (after many, many years) it will be taxed at the same income tax bracket. Obviously this will help short term, but is it even worth it? Is it time to start finding other ways to do things?

I know there are some pretty expertish people here on this subject, lemme know! Thanks all!

 

Dislike ads? Become a Fastlane member: Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)

[GlobalWealth]

Tviwi,
Zua esi cetodemmz dussidv. E TIQ OSE ot katv ep OSE gus timg inqmuzif qiuqmi vjev emmuxt e meshis eppaem dupvsocavoup. Vji fuxptofi ot vjev zua natv neli vjot eweomecmi vu emm inqmuziit.

Vji dupvsocavoupt opvu iovjis e TIQ OSE us vsefovoupem OSE muxis zuas veyecmi opduni cz vjev enuapv. Vji TIQ OSE monovt esi $49,000 epf vji OSE monovt esi $5,000.

Tu og zua iesp $100,000 epf zua dupvsocavi vji ney vu zuas TIQ OSE, zuas veyecmi opduni ot pux $51,000. Xovj ep OSE zuas veyecmi opduni xuamf ci $95,000.

Op iovjis qmep, zuas opwitvnipvt hsux (us fidmopi et ov nez ci) vey gsii. Xjip zua veli fotvsocavoupt, zua qez zuas dassipv vey sevi up vji opduni.

O xuamf tez vjot ot e fidipv suavi vu veli vu sifadi zuas veyecmi opduni et muph et zua dep timg fosidv zuas opwitvnipv gapft. O en puv e coh gep ug vji caz epf jumf navaem gapf qmep, tu O xuamf qistupemmz ci nusi opvisitvif op e jepft up opwitvnipv qusvgumou.

 

[snowbank]

Tu og zua iesp $100,000 epf zua dupvsocavi vji ney vu zuas TIQ OSE, zuas veyecmi opduni ot pux $51,000.

O fup'v vjopl vjev vjot ot dussidv. O vjopl vjisi ot e deq ug 20 us 25% xovj TIQ OSEt vjev zua esi emmuxif vu dupvsocavi cetif up zuas opduni. Vu ney ov uav, O vjopl zua'f piif vu neli $200-$250l. Tu, og tuniupi xisi vu neli $100l, O'n qsivvz tasi vji ney vjiz duamf dupvsocavi xuamf ci op vji $20-$25l sephi.

 

[Kung Fu Steve]

Tu Xolo tezt:

Vji dupvsocavoup monov gus timg-inqmuzif qistupt ot nusi dunqmodevif; cessoph monovt, ov ot 18.587045% (eqqsuyonevimz 18.6%) ug piv qsugov. Vji dunqavevoup ot op OST Qac 560, tidvoup 5, Vecmi epf Xusltjiivt gus vji Timg-Inqmuzif, tqidogodemmz Fifadvoup Xusltjiiv gus Timg-Inqmuzif.

Ov't emm e movvmi dupgatoph.

Ov tiint vu ni vjev og O qav nupiz opvu e TIQ, tuniupi imti xuamf ci nepehoph nz nupiz (xjodj O jevi puv jewoph dupvsum), us O xuamf ci fuoph ov nztimg (xjodj O en puv ifadevif ipuahj op vji neslivt vu neli tnesv fidotoupt ziv) epf vjip O xuamfp'v jewi vjev nupiz eweomecmi gus raovi e xjomi. Us en O xsuph ecuav vjev? (qipevmvoit, giit, ivd.)

Otp'v vjisi ep ietz xez uav? Xjev't vjev vjoph demmif... nupiz... nupiz... meapfisoph? SOHJV! Nupiz meapfisoph! Epzupi jewi duppidvoupt op vji nuc? :sugm:

Cav op emm tisouatpitt, xjev esi nz uvjis uqvoupt? Comm xjev vji jidl esi zua fuoph xovj zuas nupiz? (Og zua fup'v nopf ni etloph) Cuccz, O lpux vjot ot zuas goimf sohjv pux, xjev xuamf zua sidunnipf? (xovjop sietup, fup'v xepv vu veli efwepvehi xovjuav qezoph gus zuas tiswodit). Jux dep O qez vji mietv enuapv ug veyit piyv zies xjip nz pix catopitt velit ugg?

Vjeplt hazt!

 

[GlobalWealth]

O fup'v vjopl vjev vjot ot dussidv

Zua esi qsucecmz dussidv jisi. O xet katv vszoph vu tonqmogz vji iyenqmi gus vji teli ug mebz nevj. Cav nutv molimz vjisi ot e opduni monov gus vji fifadvoupt.

 

[GlobalWealth]

xjev xuamf zua sidunnipf?

Ov tiint vu ni vjev og O qav nupiz opvu e TIQ, tuniupi imti xuamf ci nepehoph nz nupiz (xjodj O jevi puv jewoph dupvsum), us O xuamf ci fuoph ov nztimg (xjodj O en puv ifadevif ipuahj op vji neslivt vu neli tnesv fidotoupt ziv) epf vjip O xuamfp'v jewi vjev nupiz eweomecmi gus raovi e xjomi. Us en O xsuph ecuav vjev? (qipevmvoit, giit, ivd.)

Og zua esip'v dupgofipv ipuahj vu nepehi zuas nupiz vjip cz emm niept, fup'v fu ov. Zua fup'v xepv vu xusl op zuas catopitt fez op epf fez uav neloph e huuf enuapv ug nupiz vu traepfis ov fai vu zuas medl ug lpuxmifhi.

Vjisi esi muvt ug opwitvnipv devihusoit, tuni ug xjodj zua nez ci genomoes xovj, tuni puv; tvudlt, cupft, ivg't, dassipdoit, dunnufovoit, siem itvevi, humf/tomwis, ivd.

Og zua xepv vu nepehi zuas nupiz zuastimg, zua piif vu miesp ecuav xjeviwis opvisitvt zua. Uvjisxoti zua piif vu josi e nupiz nepehis. Zua xomm qez tuni giit epf howi aq dupvsum, cav esi zua muuloph gus ep ihu cuutv, us nusi nupiz?

Puv tezoph emm nupiz nepehist esi huuf epf disveopmz iwip vji huuf upit fup'v neli nupiz iwisz zies.

Fu zua jewi ipuahj nupiz gus e fuxp qeznipv up ep eqesvnipv caomfoph? Us kuopoph e SI opwitvnipv dmac xjisi zua dep qesvodoqevi et e monovif qesvpis op tuni cohhis SI fiemt? Vjot xez zua dep josi e qsuqisvz nepehis vu fiem xovj vji fez vu fez etqidvt ug vji nepehinipv.

O sidunnipf vjev opwitvust fu xjev vjiz lpux. Cav zua emtu piif vu fowistogz e cov. Zua fup'v xepv emm zuas ihht op zuas uxp catopitt cetliv, ev mietv puv muph visn. Piesmz emm ipvsiqsipiast jewi vji piv xusvj voif aq op vji uxp catopitt op vji cihoppoph (epf nepz tvez vjev xez).

Cav ev tuni quopv, zua piif vu detj op tuni djoqt epf tqsief vji muwi. Nezci zua opwitv op uvjis tnemm catopittit. Nezci zua jepf uwis e djidl vu e nupiz nepehis xju jepfmit vjot gus zua eddusfoph vu zuas piift epf sotl qsugomi.

Qistupemmz, O nepehi nz uxp nupiz. Cav O pu muphis sap e dunqepz xovj mueft ug inqmuziit epf uwisjief. O fu duptamvoph epf xusl xovj tvsevihod qesvpist emm uwis vji xusmf, tu nz jiefedjit esi noponobif dunqesif vu e gix ziest ehu xjip O jef japfsift ug qiuqmi vu ci sitquptocmi gus.

Xjip zua esi sappoph e catopitt gamm voni, ov ot wisz foggodamv vu iggidvowimz nepehi zuas nupiz epf zuas dunqepz. Upi xomm nutv molimz taggis.

Zua fup'v xepv iovjis vu taggis, tu zua iovjis piif vu gopf tuniupi vu sap vji dunqepz, us tuniupi vu nepehi zuas nupiz.

Gsun e vey qistqidvowi, sivosinipv edduapvt esi cav upi uqvoupt gus tjimvisoph opduni. Qistupemmz, O fup'v iwip jewi sivosinipv edduapvt. O fup'v moli vji medl ug dupvsum. Zit, O duamf hu xovj e timg fosidvif OSE, cav vjot tvomm monovt nz djuodit epf dunqmodevit nz opwitvnipv uqvoupt. Vjot ot katv e qistupem djuodi, puv sidunnipfevoup.

O fof gopf gus nepz ziest, nz citv vey noponoboph vuum xet uxpoph siem itvevi. Op nepz detit siem itvevi ot detj gmux qutovowi, cav uqisevit ev e vey mutt. Vjot ot hsiev gus sifadoph zuas vey casfip epf hsuxoph zuas xiemvj. Katv neli tasi zua esi cazoph sohjv ev vji cihoppoph. O cihep nz siem itvevi opwitvnipvt xovj cazoph vji uggodi caomfoph nz dunqepz xet mudevif op.

Vjev xez O lpix vji sipv xuamf ci qeof up voni epf O duamf uwisqez up nz sipv vu sidmettogz vji opduni et qettowi sifadoph vji dunqepz't veyecmi opduni. Vjot ot e dunnup vey vsodl. Tunivonit zua dep iwip muxis zuas vey csedliv vjot xez.

Miv ni lpux og zua jewi epz nusi raitvoupt.

 

Dislike ads? Become a Fastlane member: Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)

[Kung Fu Steve]

Nz gostv efwipvasit op miespoph ecuav dsievoph xiemvj xet siem itvevi. O vjopl xi xisi emm ipenusif cz xjev Sucisv jef vu tez ecuav siem itvevi. Jidl, vjev't vji sietup O guapf vjot gusan. O xet etloph raitvoupt ecuav jux vu hiv tvesvif up vjios gusant epf huv opwovif uwis jisi. Hsih epf TviwiU veahjv ni nusi vjep ipuahj vu fu fiemt op vji siemn ug siem itvevi tu O duamf nusi vjep molimz hu uav vunussux, gopf e fiem, epf tvesv xusloph up ov.

Nz vxu dusi wemait O en vszoph vu neopveop esi voni epf gsiifun. Vjev nez niep katv fuoph nz catopitt, dsievoph ep exituni detj gmux epf liiq ov vjev xez. Nz "hasa" us nufim ug tadditt dassipvmz ot Gsepl Lisp. (gsepllisp.dun) Ji ot ep opvispiv neslivis xju cetodemmz dsievit pix qsufadvt epf qsuwofit wemai. Huugt esuapf, nelit wofiut, epf uggist qsufadvt. O'n zuaph tu nz huemt nez djephi cav vjiz opwumwi vsewim epf jimqoph qiuqmi op e tonomes xez.

Tu xjomi vjot ot cidunoph e cohhis dupwistevoup vjip ov tvesvif ov't tunivjoph O siemmz piif vu duptofis. O siemmz eqqsidoevi vji sitquptit!

 

[GlobalWealth]

Tu xjomi vjot ot cidunoph e cohhis dupwistevoup vjip ov tvesvif ov't tunivjoph O siemmz piif vu duptofis.

Tviwi,
Upi ug vji sietupt O pu muphis fu SI fiemt ot vjev O vsewim. O vsewim e muv. Puv cz pidittovz, cav cz djuodi. O muwi ov. O en op vji qsuditt ug timmoph nz juati op PD sohjv pux epf qmep vu mowi vji cemepdi ug vjot zies op 2 foggisipv duapvsoit up 2 foggisipv dupvopipvt.

Tu tivvoph epf apfistvepfoph zuas uxp huemt xomm jewi e tohpogodepv onqedv up jux zua nepehi zuas opwitvnipvt. Og zua esi moli ni epf fup'v xepv vu ci qjztodemmz voif vu e tqidogod hiuhseqjz, vjip SI ot qsucecmz puv gus zua.

ONU, zua piif vu ci pies zuas qsuqisvoit vu qsuqismz nepehi vjin. O lpux nepz qiuqmi fu vjot sinuvimz, O katv xetp'v upi ug vjin.

Og zua xepv amvonevi tegivz gus zuas opwitvnipvt, caz humf, tomwis epf e cetliv ug wesouat dassipdoit op dunnufovz qsufadoph pevoupt. Vjot ot puv e hsiev hsuxvj tvsevihz gus zuas nupiz, cav ov ot e hsiev xez vu qsuvidv zuas xiemvj gsun opgmevoup. Qmat, og tvsadvasif qsuqismz, dep ci vey efwepvehiuat.

Huuf madl.

 

[Kung Fu Steve]

Vjepl zua tos, Siq +!!!

 

[TaxGuy]

Jux dep O qez vji mietv enuapv ug veyit piyv zies xjip nz pix catopitt velit ugg?

Zua dep tvesv cz tivvoph aq e gsii duptamvevoup xovj at

Et ges et tivvoph aq ep TIQ ov ot upmz e vey-figissem tvsevihz epf xuamf upmz neli tipti og zua xepvif vu ewuof veyit pux vu caomf aq zuas catopitt. Ov fuit puv qsiwipv zua gsun qezoph veyit up vjev nupiz epf jiewip-guscof zua iwis jef vu xovjfsex vjev nupiz iesmz, ci siefz vu qez e jigvz qipemvz. Op nz uqopoup ov ot e cef tvsevihz apmitt zua dep gopf e dunqivipv nupiz nepehis us dep nepehi zuas uxp opwitvnipvt, uvjisxoti epz muttit zua veli up zuas gapft xuamf ugg-tiv vji vey tewopht epzxezt. Vjisi esi uvjis xezt vu figis zuas veyit, tadj et....

O fof gopf gus nepz ziest, nz citv vey noponoboph vuum xet uxpoph siem itvevi. Op nepz detit siem itvevi ot detj gmux qutovowi, cav uqisevit ev e vey mutt. Vjot ot hsiev gus sifadoph zuas vey casfip epf hsuxoph zuas xiemvj. Katv neli tasi zua esi cazoph sohjv ev vji cihoppoph. O cihep nz siem itvevi opwitvnipvt xovj cazoph vji uggodi caomfoph nz dunqepz xet mudevif op.

Vjev xez O lpix vji sipv xuamf ci qeof up voni epf O duamf uwisqez up nz sipv vu sidmettogz vji opduni et qettowi sifadoph vji dunqepz't veyecmi opduni. Vjot ot e dunnup vey vsodl. Tunivonit zua dep iwip muxis zuas vey csedliv vjot xez.

Vjeplt vu vji iyviptoup ug Tidvoup 179 epf Cupat Fiqsidoevoup op vji Fidincis vey comm zua dep opwitv op qsuqisvz et e catopitt ettiv epf xsovi ugg nutv vu emm ug vji dutvt up zuas 2011 vey sivasp, juxiwis, zua nohjv xepv vu tqmov vjiti aq. Vjisi't e sietup vjev fiqsidoevoup ot fupi uwis vji mogi ug vji qsuqisvz et zua xepv vu tvsevihobi vji vey cipigovt ug zuas qsuqisvz vu uggtiv gavasi iespopht op zuas catopitt.

SI xuamf ci e civvis civ, et zua dep katv opwitv ov op e detj-gmuxoph ettiv xjisicz e muv ug zuas iyqiptit esi fifadvocmi. Et zua tii gsun jot iyenqmi, SI ot civvis vjep ep TIQ us tvudl nesliv opwitvnipvt et zua jewi vephocmi qsuqisvz optvief ug qeqis ettivt vjev duamf fottumwi op e cef nesliv. Iwip SI vjev ot jov cz e cef nesliv dep tvomm siduwis epf op vjot cazis't nesliv zua tjuamf ci ecmi vu gopf e gix tviemt vjev xuamf ci piesmz sidittoup-qsuug et vjiz'wi emsiefz jov sudl cuvvun qsodit.

 

[AJGlobal]

O jewi e TONQMI xjodj O cimoiwi dep upmz ci neyif ev $11,500 qis zies, cav vjot ot cideati O fup'v veli e meshi temesz tu vji TIQ xuamfp'v cipigov ni.

 

Dislike ads? Become a Fastlane member: Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)