Need tax advice

[kostask]

Hello.

I am in a difficult situation. I have made a good amount of money this year and was advised by my tax advisor to invest some of my liquid assets to a new business that requires a lot of startup costs. This way I can spend money on the business and justify it and not have to pay a lot to uncle Sam at the end of the year.

Your advice is appreciated.

Thanks

[jIM_Ohio]

Not enough info, please be more specific.

[responduser]

I have made a good amount of money this year and was advised by my tax advisor to invest some of my liquid assets to a new business that requires a lot of startup costs. This way I can spend money on the business and justify it and not have to pay a lot to uncle Sam at the end of the year.

Ask your tax advisor if there is any alternative available or not. Try to understand the logic behind his/her suggestion and do accordingly which is suitable for you.

[maat55]

I think it is poor advice to recommend something you do not understand. You should be fully aware of the decissions you make with your money. I would pay the tax and prepare better for the next windfall.

[kostask]

Thanks for your response

Some more info:

1. I am at the highest tax bracket?
2. I've saved enough to make an investment in a franchising business or commercial property
3. I've got a 4 month old
4. Wife taking care off the little one

Is there any other way to avoid paying uncle SAM a hefty (tens of thousands) amount?

Thanks,

Kostas

[scfr]

On the surface, this sounds like an odd suggestion by your tax advisor. Starting a business simply for to save on taxes does not sound like a good plan. If you invest your time and money in a business venture, presumably you want it to be successful. If your business is successful, you will make more money and wind up owing even more taxes.

However, is investing in a franchise or a commercial property something you have thought about for a long time, have investigated and found that it is a good business opportunity, and you have to desire to commit your time and money to? If so, then perhaps your advisor is suggesting that this is the year you go ahead and take the plunge because you have the resources and tax-wise now would be a good time. If that is the case, then it makes sense.

[maat55]

Some more info:

1. I am at the highest tax bracket?
2. I've saved enough to make an investment in a franchising business or commercial property
3. I've got a 4 month old
4. Wife taking care off the little one

Is there any other way to avoid paying uncle SAM a hefty (tens of thousands) amount?

Thanks,

Kostas

You have some time to decide. If I were looking for a quick shelter, it would be in Real Estate. But I'm not sure you can just make a lot of income in one area and invest it in another to advoid tax. You need to go on an tax related forum for this question.