Recently came into some substantial $$ because of RE sale. After paying off bills, where should I put $$ to avoid paying huge income tax next year? Husband is self-employed & I am not employed.
2007-06-28 12:39:22 · 3 answers · asked by Julie P 1 in Business & Finance ➔ Taxes ➔ United States
Have your husband's accountant start him a retirement plan for his business like a SEP IRA and fund that with your money. Fund a ROTH IRA for each of you.
Invest the rest in the stock market or equity mutual funds. The growth will be tax deferred until you sell and if you die before you sell it gets a stepped up basis for your heirs. The dividends and long term gains you might get will be taxed less than earned income.
2007-06-28 14:22:30 · answer #1 · answered by shipwreck 7 · 0⤊ 0⤋
Did your tax counsel consider a 1031 tax deferred exchange prior to the sale of your real estate? The tax liability occured when you received the money. Watch out for tax shelters as the government may come after you as they have other tax payers.
2007-07-02 11:56:27 · answer #2 · answered by William H 5 · 0⤊ 0⤋
File jointly. Invest dollars in his business. Start your OWN business!
2007-06-28 12:45:12 · answer #3 · answered by Anonymous · 0⤊ 0⤋