| Iowaluck - 8/25/2023 07:48 My way of thinking is make as much money as possible and let my tax man figure out the taxes. I pay him to get my taxes as low as possible. I hear farmers talk all the time about how they try and make as little as possible to avoid taxes. If I had to pay a million dollars in taxes I would be happy because that means I made a lot of money. If you make decision based on lowering your income tax you are probably your your actual income.
If you pay a million in taxes every year, your strategy is sound.
If you pay a million in taxes one year and then pay none or minimal taxes the next 2-3-5 years your strategy is terrible.
That is why guys talk about doing pre tax planning with an accountant. My goal is never to lower my income, my goal is to minimize the amount of tax that I pay on the money I make over a period of time that includes several years. Sometimes that means deferring income into the next year to level out the income levels, sometimes it might mean trying to pull income forward to make sure we fill up a lower tax bracket.
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If you have 250k of cash
