What is a legal and best way to minimize my taxes?

Question

My wife and I make around 160K to 200K a year. we have 85K in student loan, 185K primary mtg, 160K rental property mtg. Our net worth is around 210K. This is the first year our income is above above 105K since my wife just graduate for school. I am looking for ways to reduce my taxes in addition to maxing out our retirement and ira's,

Answer 1

Truthfully, the only legal way to reduce your income taxes by a substantial amount is to get paid less. Be thankful that you make enough money that you have a big tax bill.

Answer 2

without going into IRa and annuities

follow these simple guidelines

If you use your vehicle for business purposes(not just commutting to work) Keep track of all mileage, expenses related to vehicle, parking, tolls ect ect

also mileage drivebn for a charitable purpose can be claimed

keep track of charitable donations

If you buy any vehicles, boats airplanes or home building materials keep track of sales tax as it is deductible

You have a student loan ? keep track of interest paid

Any tuition you may have paid is deductible

business losses as deductible and reduce your taxable income(hehe a got a websitre I guarantee you can lose money on sell it to ya cheapLOL :) )

Any expenses related to your job

contributions to your IRa up to a certain point are deductible

any repairs or expenses for the rental property can be deductible
depreciation on the rental property can also be used

Answer 3

The only legal way to lower your taxes is to lower your taxable income.
Some people start businesses (sole props or "S" corps) for that purpose because in the first couple of years you will probably lose money and that pass-through loss will reduce your other income. Then, when you are making more money, it will probably hurt less to again have a tax liability.

Answer 4

When possible postpone income receipt & escalate payment of deductible expenses. Example of income postponement: waiting to cash in savings bonds until after 12/31.

Answer 5

I would suggest you consult an accountant, who prepares taxes on a regular basis. They would know better than anyone the best way to minimize your taxes.

Answer 6

What about a tax sheltered annuity?

http://www.directannuities.com/tax-sheltered-annuities.shtml

Answer 7

Max out your contributions to 401(k) - really, max it out.