How do you NOT get fucked in the ass by taxes? (Those making >$500,000 a year)

So what you're trying to say is that you make over half a million bucks a year. I guess I'm impressed, that's for sure.

But really, with that kind of money why don't you just buy a village in Romania? That's what I would do. I would also create a law which forces all families in said village to hand over their daughter(s) when they reach 18. I would keep them all in a stable made of 1000 dollar bills behind my mansion made out of gold bars. When I'm not getting gangbanged by 20 or so young Romanian slave girls, I would skeet shoot naked from my front porch while smoking a foot long joint rolled between the thighs of the most supple slave girl.

Cry me a river.

Just a thought but...

Couldn't you set up an offshore company. Have all monies earned paid to that company. Collect a salary from that company, pay taxes on that salary and leave the rest of the money in the offshore corp which is presumably in a tax free or low tax country?

Just a thought but...

Couldn't you set up an offshore company. Have all monies earned paid to that company. Collect a salary from that company, pay taxes on that salary and leave the rest of the money in the offshore corp which is presumably in a tax free or low tax country?

I remember when I used to think that same thing. Now I don't think a million a year is jack shit. And there definitely isn't any buying villages and spending your whole day getting laid....I always thought when I made a lot of money that I would be lying in a room full of naked whores and drugs and decadence...but instead it turns out that I'm working 7 days a week at 12 to 14 hours a day and always worried and tense. I definitely had a lot more fun and free time when I was making a couple hundred bucks a week touring in bands. And no, I ain't whining. I love my life. It's just a lot different when you make money than what you imagine it will be beforehand. And when you pay those taxes...it really hurts. If it weren't for taxes, then yeah! You could buy a village in Romania and fuck young girls all day long. But when you spend most of your money on shit that you really don't want (so you can write it off, how many goddamn computers and office desks and gadgets do I need every year? ), and then some more on your accountant, and then still hand off a HUGE chunk to the govt. of YOUR money. Well, it doesn't leave you a whole lot to play with. I find myself pretty much tapped out at the end of every month no matter how much I make. And then paying those big quarterly checks to the govt. for taxes just makes it that much worse.
I think the payroll tax was probably the most evil and ingenius thing the U.S. govt. ever did. Nobody actually sees what they are paying. It's all taken out before they get their check. And then when they get a "refund', they don't realize that it's because the govt. took too much of THEIR money. They all look at it as a "gift" from the govt.! LOL
Believe me, if the average American had to actually write a check for all of their income taxes...their would be a huge revolt.

Im Canadian, and I am sick and fucking tired of losing close to half my income on taxes. I know that there are a lot of similarities between the Canadian and American system, so I think Americans are in the same boat.

Since I do not have a regular job, taxes arent automatically taken out of my paycheck. That means that I need to do taxes myself, and it also means that I need to keep track of every single freaking purchase and its receipt or else I cannot claim them as deductables, and I have to pay taxes on these purchases.

Everyone told me I need to setup a corporation or else I am going to get owned on taxes. So I set one up, and honestly I do not see how setting up a corporation saves you much on taxes (if at all). First you have to pay your 22% or so corporate tax, and then when you want to actually use your money for yourself (instead of it sitting in a corporate bank account) you need to give yourself a salary - and then pay tax on that again. So realistically, there is a damn good chance youll actually be paying more on taxes with a corporation. See some math below.

Say you make $500,000 a year - and you designate a salary of $200,000 for yourself. So you pay 22% corporate tax on $300,000 ($66,000) and an additional $65,565 on your salary personal income tax, for a total of $131,565. But of course, that $300,000 still in your corporate bank account is not YOUR money yet - so in the future, if you want to buy a house or a car or something with that money, you need to give it to yourself first (that means you pay income tax) and then you can spend it. Someone please tell me how having a corporation saves you any money? Unless you plan on making nothing for a few years, you can give yourself a salary of $30,000 or something and not pay any income tax (or very little).. but if you continue making money, youre gonna get fucked with a high tax rate on your 'income' withdrawal from your corporation. Say I stop working and bring in no money, and the next year I give myself $200,000 and the year later $100,000 - that means I pay another $65,565 and $27,261 - for a total of $224,391. Instead, if I didnt have a corporation, and paid income tax on that $500k, Id pay only $182,565 in income tax.

So what do you guys do?

Even if you setup an offshore corporation - the same problem occurs.. that money is not your money yet (its your businesses) and therefore you cant spend it on your house, groceries, etc until you give yourself a salary and pay income tax on that.

Am I missing something?

So what you're trying to say is that you make over half a million bucks a year. I guess I'm impressed, that's for sure.

But really, with that kind of money why don't you just buy a village in Romania? That's what I would do. I would also create a law which forces all families in said village to hand over their daughter(s) when they reach 18. I would keep them all in a stable made of 1000 dollar bills behind my mansion made out of gold bars. When I'm not getting gangbanged by 20 or so young Romanian slave girls, I would skeet shoot naked from my front porch while smoking a foot long joint rolled between the thighs of the most supple slave girl.

Cry me a river.

Myst, your missing allot, at least from the stand point of someone who lives in the US.
First, I have a s-corp (sub-chapter S corporation) in Nevada
there are a few states where you can incorporate where the corporation does not pay taxes on its profits. Nevada is one of them. So when tax times comes around,for my federal tax, I just send in my stuff to my accountant and he sends it back, I sign it and send it to the IRS. Nothing is ever owed on the corp return.

to keep track of expenses is easy, simply get a business account and a debit card for it and use it for all business related expenses, then use quicken or quick books and your set.

my personal return is different tho, I pay taxes on that, but then thats where owning your own home comes in, having an IRA account, and some other stuff.

you sound like you set your corp up on your own, if your making 500k a year, you can afford to get an accountant to set it all up for you and to give you advice. Do it right and sleep good at night. Do it wrong, get boinked in the bung.

I feel your pain. I paid 150K in federal taxes and another 40K in state and local taxes in 2007. Not to mention the fact that I pay tax everytime I buy anything. It's freakin' ridiculous. And "no", even though I paid all these taxes....I make too much money to get ANY back in this big "tax refund" gimmick that's coming...yet people who paid NO taxes are gonna get checks and they are calling them "rebates". How the HELL do you get a "rebate" check when you paid NOTHING? Fucking crazy.

Las Vegas would be the best place to live then, no franchise taxes, no state taxes and no corporation taxes.
http://en.wikipedia.org/wiki/Nevada_corporation
Venus, how about we go for a drink and talk about this some more?

It's funny how people like you take everything for granted, i.e. infrastructure, public transportation, police etc. but are not willing to pay for those benefits.
Obviously nobody likes to pay taxes but think about it this way. If you really make 500k per annum you probably have still about 10 times more money after taxes than the average person in the USA, not even talking about the majority of the world's population that lives in 3rd world countries.

oh nice

what about just setting up a corporation in nevada? is that possible?

"Just" setting up a corporation in Nevada is NOT enough. Nevada is a state and as such it can only relieve you of state income tax. A corporation domiciled in Nevada is still 100% liable for any federal corporate income tax it may incur. Of course, one benefit is that corporations, LLCs and other legal fictions are only liable to pay taxes on PROFITS. Unlike individuals who make themselves subject to income tax which must pay taxes on revenues (pre-tax, pre-expenes income).

Venus, how about we go for a drink and talk about this some more?

So what you're trying to say is that you make over half a million bucks a year. I guess I'm impressed, that's for sure.

But really, with that kind of money why don't you just buy a village in Romania? That's what I would do. I would also create a law which forces all families in said village to hand over their daughter(s) when they reach 18. I would keep them all in a stable made of 1000 dollar bills behind my mansion made out of gold bars. When I'm not getting gangbanged by 20 or so young Romanian slave girls, I would skeet shoot naked from my front porch while smoking a foot long joint rolled between the thighs of the most supple slave girl.

Cry me a river.

I remember when I used to think that same thing. Now I don't think a million a year is jack shit. And there definitely isn't any buying villages and spending your whole day getting laid....I always thought when I made a lot of money that I would be lying in a room full of naked whores and drugs and decadence...but instead it turns out that I'm working 7 days a week at 12 to 14 hours a day and always worried and tense. I definitely had a lot more fun and free time when I was making a couple hundred bucks a week touring in bands. And no, I ain't whining. I love my life. It's just a lot different when you make money than what you imagine it will be beforehand. And when you pay those taxes...it really hurts. If it weren't for taxes, then yeah! You could buy a village in Romania and fuck young girls all day long. But when you spend most of your money on shit that you really don't want (so you can write it off, how many goddamn computers and office desks and gadgets do I need every year? ), and then some more on your accountant, and then still hand off a HUGE chunk to the govt. of YOUR money. Well, it doesn't leave you a whole lot to play with. I find myself pretty much tapped out at the end of every month no matter how much I make. And then paying those big quarterly checks to the govt. for taxes just makes it that much worse.
I think the payroll tax was probably the most evil and ingenius thing the U.S. govt. ever did. Nobody actually sees what they are paying. It's all taken out before they get their check. And then when they get a "refund', they don't realize that it's because the govt. took too much of THEIR money. They all look at it as a "gift" from the govt.! LOL
Believe me, if the average American had to actually write a check for all of their income taxes...their would be a huge revolt.

Do you actually have a corporation registered in Nevada?

I do, and I can tell you, your wrong.

Even if you setup an offshore corporation - the same problem occurs.. that money is not your money yet (its your businesses) and therefore you cant spend it on your house, groceries, etc until you give yourself a salary and pay income tax on that.

Am I missing something?

how the fuck you do a million per year...

do you own a sponsor?

the key is tax-fraud.

Let me make this very simple...

Paying taxes is a GOOD thing!

the key is tax-avoidance.

Tax Planning

Well the government has to pay professors a competetive wage to the industry. Most professors could make way more money by not working for the government but most of them want to teach students and then they just accept the opportunity cost. One of my professors wrote a famous book about economics and he told us that he does not make very much money from it. If he had worked the time he needed to write that book he would have made more money. But he got ethos and credibility from that book and that is worth more to him than money.
Moreover you cannot compare your lazy friend doing a summer job with people working for the government every day. When I was young I used to work for a government insurance company too. 10 hours paid per day and I was only working 4 hours maybe. They do not expect summer employees to work as much as the other workers.

would you want me to bring my 8 month old baby with me (BTW I am almost 2 months pregnant also)

I remember when I used to think that same thing. Now I don't think a million a year is jack shit. And there definitely isn't any buying villages and spending your whole day getting laid....I always thought when I made a lot of money that I would be lying in a room full of naked whores and drugs and decadence...but instead it turns out that I'm working 7 days a week at 12 to 14 hours a day and always worried and tense. I definitely had a lot more fun and free time when I was making a couple hundred bucks a week touring in bands.

Um not to criticize... But it sounds like you're doing something wrong

Why are you working 100 hour work weeks?!?!? Relax FFS