Tips on avoiding paying taxes

[Anonymous 11]

@op:

I know a few cash only guys. The contractors they work for have recently become hyper aggressive in giving them all 1099 forms. I’m left wondering what the IRS did to instill this fear in them.

One idiot I know got 1099s in his name containing the funds for cash only guys for after he received checks for four men plus himself. He would cash the check and dispense the cash.

He got a 1099 for all of the money. He is now responsible for their taxes too. The s~~~ty contractor was too cheap to write separate checks for each and send separate 1099s. I warned him about taking checks meant for himself plus four other guys.

I’ve gotten my accounting so streamlined that I spend very little time doing it. Today is an accounting day because I have money flying into and out of multiple accounts for various reasons.

[BeerParticipant 11832]

Beer wrote:

A lot of people focus on maximizing deductions, but if you are a bit of a minimalist the opposite advice is true…maximize your standard deduction and have as few write offs as possible. You basically get gifted a 6,300 dollar write off if you don’t itemize. If you have nothing to write off and donate 5,000 dollars to charity for the write off, it won’t save you a dime in taxes. If you have nothing to write off and donate 7,000 to charity for the tax write off you’ll only see the effect of 700 dollars of it…for probably about an extra 200 bucks in your tax return. I’m not saying don’t donate to charity if you want to donate because you believe in a cause…just chasing deductions to “save” on taxes ends up costing you more overall.

I think this concept is lost on a lot of people. I’ve had so many guys tell me to buy a house…I’ll get so much more back in my tax return! Yeah…I want to pay 10,000+ a year in property taxes and mortgage interest than I do now just to get back an extra 1,000 bucks a year in my tax return…great plan!

[Anonymous 3]

Darth Peter wrote:

I do not know the US tax system, i do not live there, but in my country there are very strict rules and audits:
-Monthly salary is not an envelope full of cash, but always through bank transfer, income tax and the money for welfare state gets subtracted, you do not even get it.
-For entrepreneurs and grocery shops etc, who work for or use lot of cash, there are a lot of audits, and the auditors do pretend to be a corrupt buyer to trap the entrepreneurs and so on.
-grocery shops (and many other shops in future) are connected to the tax authority online.(they were putting cash in there own pocket for a long time)
-If you look wealthy, and the authority thinks that you do not have enough legal income to do it, and you post your expensive whatever on social media, or have a hateful neighbor or acquaintance, you WILL get an audit.
-I think, money movements in the bank are also reported to authorities.
-And you automatically pay 27% Value Added Tax after any purchase anyway. ( between 18 to 27% across Europe)

1. So you cannot “avoid” taxes, or if you try, the risk will not be worth it.
2. Earning less is not an option here, everyone has the same tax percent, and one cannot get a good life from 250-300$ monthly (typical minimal net wage)

3. BUT: Being an MGTOW, you need to rent a smaller 1-room apartment, need only to feed and care yourself, and not having a car (huge tax content on petrol, it’s like 4.34 $/gallon here, if I convert units, and lot of tax for ownership, and insurance costs) you spend a lot less money (and so, pay less VAT) anyway.

4. Doing stuff yourself includes no taxes. The two big box of wrenches and tools will pay off on the long run. Fix your bike and things yourself, cook, wash, clean for yourself, do the paint job or gardening yourself if it is needed, etc.

5. Do not post anywhere how rich you are, or you will get an audit. You wont waste the time even if you are full legal.

[narwhalParticipant]

narwhal wrote:

I think this concept is lost on a lot of people. I’ve had so many guys tell me to buy a house…I’ll get so much more back in my tax return! Yeah…I want to pay 10,000+ a year in property taxes and mortgage interest than I do now just to get back an extra 1,000 bucks a year in my tax return…great plan!

It really depends on what kind of home you want to live in and what your financial situation is. I agree that buying a home for tax reasons alone is a poor decision, but renting a house instead of buying can be a poor decision as well depend on all the factors involved.

Ok. Then do it.

[RockmaninoffParticipant 1641]

Rockmaninoff wrote:

Keymaster wrote:

Would never recommend anything illegal under any circumstance

OP isn’t asking for advice on tax evasion (which is illegal). He’s asking for tips on tax AVOIDANCE, which is totally legal and is, as you say, “above the table.”

". . . elle, suivant l’usage des femmes et des chats qui ne viennent pas quand on les appelle et qui viennent quand on ne les appelle pas, s’arrêta devant moi et m’adressa la parole"—Prosper Mérimée

[BeerParticipant 11832]

Beer wrote:

Spank The Misandrists wrote:

It really depends on what kind of home you want to live in and what your financial situation is. I agree that buying a home for tax reasons alone is a poor decision, but renting a house instead of buying can be a poor decision as well depend on all the factors involved.

Oh yeah…financially it still generally works out cheaper to own than rent something similar…considering your land lord will be paying the same amount of taxes out of your rent as you would if you owned it.

I should have been more specific but what I was suggesting was downsize your life to avoid taxes. Instead of buying a house, a second car, and a boat…just own a condo or a trailer and one car. I live an expensive state but for me that means I pay about 2,000 a year in property taxes instead of 8,000-10,000 without factoring in any of the other ownership costs of the extra toys and property. Since those taxes are pretty much my only write off it means I get a “free” 4,300 dollar write off from the balance of the standard deduction.

Of course this doesn’t work for everyone. If you really want a nice house and a second car just because you really enjoy those things, or maybe you have some rental property or other things going on that push you over the standard deduction anyhow, this strategy won’t work, but for people who want to live cheaply the standard deduction is your friend.

[OldBillParticipant]

OldBill wrote:

Nomadg wrote:

OP isn’t asking for advice on tax evasion (which is illegal). He’s asking for tips on tax AVOIDANCE, which is totally legal and is, as you say, “above the table.”

A very good point.

Also remember the OP lives in western Canada and adjust your advice accordingly.

Regarding houses. It’s good to own a house, it’s not good to own a mortgage, and you can own the former while limiting your exposure to the latter.

With duplexes, for example, someone’s rent pay your mortgage.

Do not date. Do not impregnate. Do not co-habitate. Above all, do not marry. Reclaim and never again surrender your personal sovereignty.

[Author]

Posts