How to Kushner my taxes?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I retired four years ago, at 53, with about $5 million in investments. I haven't paid a dime in federal taxes since.

How do you do this? Invest in only fed tax free bonds? Never sell anything with cap gains that you don't have losses to put against?

Not the pp, but two easy ways retirees can pay no fed taxes: Roth IRA withdrawals and selling stocks with capital gains. Even if you dont have enough losses, you can still pull a pretty big chunk out with long term gains if you are a married couple. Playing around with taxcaster, if you are a married couple, no other sources of income, you can withdraw $96,000 of gains (so that is not cincluding the return of your capital) and not owe any fed tax.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I retired four years ago, at 53, with about $5 million in investments. I haven't paid a dime in federal taxes since.

How do you do this? Invest in only fed tax free bonds? Never sell anything with cap gains that you don't have losses to put against?

Losses on paper from real estate investments, for one thing. The Kushner way.

Tax free bond funds.

Zero percent tax bracket for capital gains.

Etc.

We live off of about 200k a year generated from a combination of the above, and pay no taxes.

but you still pay capital gains tax so you are paying some taxes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I retired four years ago, at 53, with about $5 million in investments. I haven't paid a dime in federal taxes since.

How do you do this? Invest in only fed tax free bonds? Never sell anything with cap gains that you don't have losses to put against?

Not the pp, but two easy ways retirees can pay no fed taxes: Roth IRA withdrawals and selling stocks with capital gains. Even if you dont have enough losses, you can still pull a pretty big chunk out with long term gains if you are a married couple. Playing around with taxcaster, if you are a married couple, no other sources of income, you can withdraw $96,000 of gains (so that is not cincluding the return of your capital) and not owe any fed tax.

I just went to TaxCaster and, in a very quick hypothetical scenario, it appears that the above info is accurate.
So here’s my question for the PP (above) or other tax return expert, how does $96K in Long Term Capital Gains not trigger a tax for a married couple filing jointly? That seems like an awful lot of gains for no tax due.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I retired four years ago, at 53, with about $5 million in investments. I haven't paid a dime in federal taxes since.

How do you do this? Invest in only fed tax free bonds? Never sell anything with cap gains that you don't have losses to put against?

Not the pp, but two easy ways retirees can pay no fed taxes: Roth IRA withdrawals and selling stocks with capital gains. Even if you dont have enough losses, you can still pull a pretty big chunk out with long term gains if you are a married couple. Playing around with taxcaster, if you are a married couple, no other sources of income, you can withdraw $96,000 of gains (so that is not cincluding the return of your capital) and not owe any fed tax.

I just went to TaxCaster and, in a very quick hypothetical scenario, it appears that the above info is accurate.
So here’s my question for the PP (above) or other tax return expert, how does $96K in Long Term Capital Gains not trigger a tax for a married couple filing jointly? That seems like an awful lot of gains for no tax due.

Because that is how long term gains are taxed. At 0% if married and income is under 77,200. So for 2018, if a couple has no other income, they pull gains of approximately $101k and then minus the standard deduction of $24k for married couple. Leaving all income under 77,200 so gains are taxed at 0%.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I retired four years ago, at 53, with about $5 million in investments. I haven't paid a dime in federal taxes since.

How do you do this? Invest in only fed tax free bonds? Never sell anything with cap gains that you don't have losses to put against?

Losses on paper from real estate investments, for one thing. The Kushner way.

Tax free bond funds.

Zero percent tax bracket for capital gains.

Etc.

We live off of about 200k a year generated from a combination of the above, and pay no taxes.

but you still pay capital gains tax so you are paying some taxes.

Nope. As I said, I’m in the zero percent bracket for cap gains.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I retired four years ago, at 53, with about $5 million in investments. I haven't paid a dime in federal taxes since.

How do you do this? Invest in only fed tax free bonds? Never sell anything with cap gains that you don't have losses to put against?

Not the pp, but two easy ways retirees can pay no fed taxes: Roth IRA withdrawals and selling stocks with capital gains. Even if you dont have enough losses, you can still pull a pretty big chunk out with long term gains if you are a married couple. Playing around with taxcaster, if you are a married couple, no other sources of income, you can withdraw $96,000 of gains (so that is not cincluding the return of your capital) and not owe any fed tax.

I just went to TaxCaster and, in a very quick hypothetical scenario, it appears that the above info is accurate.
So here’s my question for the PP (above) or other tax return expert, how does $96K in Long Term Capital Gains not trigger a tax for a married couple filing jointly? That seems like an awful lot of gains for no tax due.

Because that is how long term gains are taxed. At 0% if married and income is under 77,200. So for 2018, if a couple has no other income, they pull gains of approximately $101k and then minus the standard deduction of $24k for married couple. Leaving all income under 77,200 so gains are taxed at 0%.

Thank you for that clarification. Very interesting, very helpful.

[Anonymous]

Anonymous wrote:There was the big story this weekend that JK didn't pay anything in federal taxes. And there was a fight between those defending him for being smart and using the tax code to his advantage and those saying that those codes only help the rich.

I'm not rich. I'm barely making it. I make less than 100K. I'm a single parent. I have a fed job. What do I need to do to maximize how I do things so I'm not losing about a 1/3 of my salary to taxes every year. Help my Kushner my income.

Go.

You see a wage slave worker. You can only do magic with your taxes if you are an investor and fill out an 8949. I highly doubt you do tax loss harvesting.

Stop being a wage slave and become an investor and risk taker and you can reap the rewards. However if you constantly look to an employer as your meal ticket, you can't be helped.

People it is all very simple if you get off the payroll, stop working for the man and do some tax loss harvesting with your securities. This is not exactly rocket science.

[Anonymous]

Pricelsss...

[Anonymous]

You all are stupid. People like kushner are taking risks investing in the economy and creating many jobs, therefore you get deductions if you lose on an investment. You are all wage earners that do not invest so why would you offset profits with loses. Guys you could lose at gambling and deduct those if you think that's an equivalent. No wonder there see so many stupid people who don't understand taxes and loses...

[Anonymous]

Anonymous wrote:

Anonymous wrote:There was the big story this weekend that JK didn't pay anything in federal taxes. And there was a fight between those defending him for being smart and using the tax code to his advantage and those saying that those codes only help the rich.

I'm not rich. I'm barely making it. I make less than 100K. I'm a single parent. I have a fed job. What do I need to do to maximize how I do things so I'm not losing about a 1/3 of my salary to taxes every year. Help my Kushner my income.

Go.

You see a wage slave worker. You can only do magic with your taxes if you are an investor and fill out an 8949. I highly doubt you do tax loss harvesting.

Stop being a wage slave and become an investor and risk taker and you can reap the rewards. However if you constantly look to an employer as your meal ticket, you can't be helped.

People it is all very simple if you get off the payroll, stop working for the man and do some tax loss harvesting with your securities. This is not exactly rocket science.

But then who would work for the man? Who/what would do all those thing no one is doing?

[Anonymous]

Anonymous wrote:You all are stupid. People like kushner are taking risks investing in the economy and creating many jobs, therefore you get deductions if you lose on an investment. You are all wage earners that do not invest so why would you offset profits with loses. Guys you could lose at gambling and deduct those if you think that's an equivalent. No wonder there see so many stupid people who don't understand taxes and loses...

It’s real estate.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You all are stupid. People like kushner are taking risks investing in the economy and creating many jobs, therefore you get deductions if you lose on an investment. You are all wage earners that do not invest so why would you offset profits with loses. Guys you could lose at gambling and deduct those if you think that's an equivalent. No wonder there see so many stupid people who don't understand taxes and loses...

It’s real estate.

Yes, seriously, he just guys deal estate. What is he actually talking risks with or producing?

[Anonymous]

Op, but a multifamily house. Rent out a portion and take depreciation on that portion. Any repairs done.to the house or maintenance that effects that portion can be written off your taxes (depending on what it is). Heating oil or gas, electricity if shared, a portion written off. The rent is treated differently than W-2 income taxwise.

Fund your pretax retirement accounts and HSA to lower your taxes. Also, fund a Roth IRA. You pay taxes now but won't later when you withdraw the gains. Set up.a.529 for your kid for the state tax break. If your kid is 13 or under and needs childcare or camp, fund a dependent care flex spending account.

Lots of little ways to cut down on your taxes. Not Kushner level but normal MC or UMC level.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:There was the big story this weekend that JK didn't pay anything in federal taxes. And there was a fight between those defending him for being smart and using the tax code to his advantage and those saying that those codes only help the rich.

I'm not rich. I'm barely making it. I make less than 100K. I'm a single parent. I have a fed job. What do I need to do to maximize how I do things so I'm not losing about a 1/3 of my salary to taxes every year. Help my Kushner my income.

Go.

You see a wage slave worker. You can only do magic with your taxes if you are an investor and fill out an 8949. I highly doubt you do tax loss harvesting.

Stop being a wage slave and become an investor and risk taker and you can reap the rewards. However if you constantly look to an employer as your meal ticket, you can't be helped.

People it is all very simple if you get off the payroll, stop working for the man and do some tax loss harvesting with your securities. This is not exactly rocket science.

But then who would work for the man? Who/what would do all those thing no one is doing?

Lots and lots of people most are not smart enough, nor have the risk tolerance, or the discipline to become financially independent.

[Anonymous]

Legitimate answers have been suggested above.

Someone in OP's position can definitely invest in rental real estate and get automatic depreciation on the structures over the next 30 years (approximately, the schedule is very specific). At her income, adding real estate depreciation on top of the standard deduction, 401(k) contributions, HSA contributions, and the child tax credit, it would be totally feasible that she would have no net federal tax liability. In fact, she'd get money back from the govt for the child tax credit.