I received $200k compensation on losing my job last week…the pay was outright and taxes took about 50%. Some details…I just brought a home last year…I am currently a full time student…unemployed otherwise…single…no dependants…how can I get most of that $100k back? Investing in real estate, a business, IRA, etc? I can be very flexible…anyway, thank you for any advice you can give me.
2006-08-22 07:58:07 · 5 answers · asked by James T 3 in Business & Finance ➔ Taxes ➔ United States
Go to a good CPA. I found mine and he saved me sooo much money! You do have write offs with your home and being a student, and a CPA can direct you to other investments and write off stragities. Do it soon though, as you may not have much time to get it done! Although, our country could use the extra tax dollars.......;-)
2006-08-22 08:29:03 · answer #1 · answered by jazzzame 4 · 0⤊ 0⤋
I highly recommend seeing a CPA for this tax year and speaking to a financial advisor would also be a good idea. They may be able to get you into some tax-deferred investments.
Be sure to mention 'Income Averaging' to your CPA due to this unusually high one-time payment. It may or may not work for you, but is certainly worth investigating.
Save all receipts for EVERYTHING.
An IRA can help you depending upon your age, but only to a certain dollar amount.
If you are looking for a job, save all receipts applicable to your new job search (those could be deductible).
Check the IRS website www.irs.gov and print out Schedule A (Itemized Deductions) as well as information from Publication #17 that explains Schedule A. Look for areas that you may not have thought of for deductions.
2006-08-22 16:53:22 · answer #2 · answered by nova_queen_28 7 · 0⤊ 0⤋
Invest in real estate if you have not immediate requirement of funds in near future, because the price of lreal estate/ lend plot allways go up or keep steady but never go down.
And also it will give you better returns in the form of rent if you lease the property. and simaltenausly increase the value of your investment.
For any consultation log on to www.freemankpo.com
2006-08-22 15:10:45 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Do you travel a lot? I have my own travel agency and write off all my travel expenses. Watch this presentation www.travelproinsider.com. My site is www.danestravel.com. It uses the same booking engine as travelocity. Let me know if it interests you or if you would like more information.
2006-08-23 07:09:15 · answer #4 · answered by danestravel 2 · 0⤊ 0⤋
Get married, have (adopt) kids, IRA.
2006-08-22 15:06:40 · answer #5 · answered by cherox 3 · 0⤊ 0⤋