U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 06-04-2014, 01:07 PM
 
10,819 posts, read 8,075,211 times
Reputation: 17034

Advertisements

Our mortgage has been paid off for years, but due to some windfall income we wanted a substantial tax deduction for 2013.

We opened a donor-advised charitable fund account. This enabled us to contribute and write off one large lump sum in 2013. Through the years to come, we can direct Vanguard to use that money to make donations to nonprofits that we like to support.
It's not really costing us anything over the long run because we'd be donating to our favorite nonprofits anyway. We just went ahead and put all the money in the fund at once that we'd normally parcel out over the next several years.
Reply With Quote Quick reply to this message

 
Old 06-04-2014, 01:11 PM
 
3,682 posts, read 4,942,236 times
Reputation: 2422
Quote:
Originally Posted by biscuitmom View Post
Our mortgage has been paid off for years, but due to some windfall income we wanted a substantial tax deduction for 2013.

We opened a donor-advised charitable fund account. This enabled us to contribute and write off one large lump sum in 2013. Through the years to come, we can direct Vanguard to use that money to make donations to nonprofits that we like to support.
It's not really costing us anything over the long run because we'd be donating to our favorite nonprofits anyway. We just went ahead and put all the money in the fund at once that we'd normally parcel out over the next several years.
Interesting....If you're into donating your money.....
Any suggestions for those wanting to keep their money?
Reply With Quote Quick reply to this message
 
Old 06-04-2014, 01:19 PM
 
10,819 posts, read 8,075,211 times
Reputation: 17034
Quote:
Originally Posted by Thinking-man View Post
Interesting....If you're into donating your money.....
Any suggestions for those wanting to keep their money?
You're not keeping it now, you're donating it to your mortgage holder.
I think if you keep it and deduct it, it's called tax evasion.
Reply With Quote Quick reply to this message
 
Old 06-04-2014, 01:25 PM
 
3,682 posts, read 4,942,236 times
Reputation: 2422
Quote:
Originally Posted by biscuitmom View Post
You're not keeping it now, you're donating it to your mortgage holder.
I think if you keep it and deduct it, it's called tax evasion.
ughh......are you really that ignorant or are you just pretending to be that ignorant?
I'm not donating anything to anyone. i'm 'buying' something with the interest i pay the mortgage company. I'm buying the right to borrow lots of money from them.

As far as 'keep it and deduct it', who said anything about that? or are you just in the business of making things up because you don't want to spend two minutes to read the intent of the thread altogether?

this thread is not about 'tax evasion'. it's about finding ways to 'legally' lower your tax burden after paying off your mortgage. Similar to how the interest from your mortgage can be 'legally' lowering your tax burden, there are perhaps other ways of achieving this without that particular vehicle.....and that's what i'm trying to find out and understand.
Reply With Quote Quick reply to this message
 
Old 06-04-2014, 03:12 PM
 
Location: New England
1,239 posts, read 1,710,084 times
Reputation: 928
I've got just over eight years left on my mortgage so this will be interesting to read. I'll be 44 with kids about to start college so I know where my money is going for a few years.
Reply With Quote Quick reply to this message
 
Old 06-04-2014, 04:03 PM
 
Location: Copenhagen, Denmark
10,529 posts, read 8,778,692 times
Reputation: 12228
I divorced my wife and gave her my equity.
Reply With Quote Quick reply to this message
 
Old 06-04-2014, 04:24 PM
 
Location: SoCal desert
8,093 posts, read 13,244,051 times
Reputation: 14870
Quote:
Originally Posted by Thinking-man View Post
thanks for the response and i'm sorry if my question wasn't clear enough. I understand how mortgages work. I'll be mortgage free in a few months and i'm trying to find ways to take advantage of 'other' ways to reduce my tax burden.
I was thinking buying another rental property....but the mortgage interest of that is offset by the rent collected.....i'm already maxing out 401k/ira/etc, and taking advantage of deducting property taxes, tc.....I can't think of other ways, especially after i stop paying mortgage interest.....

i hope that's more clear.
Since you're that close to paying it off, I would think your tax burden will be close to what they were in 2013. So not that much difference in 2014?

In all honesty, the last three years of accelerating my own house payments ... I didn't see much difference in my taxes. Afterwards, I threw all my extra money into a non-retirement account. I'm not real big on charitable things either, I like to keep what's mine
Reply With Quote Quick reply to this message
 
Old 06-04-2014, 05:45 PM
 
Location: Wooster, Ohio
1,036 posts, read 789,217 times
Reputation: 1490
I paid off my 15 year mortgage in under 8 years. I then had an aging car, a depleted checking account, no IRA, and no Deferred Compensation. So I saved up until I could buy a new car with cash, and started contributing to Deferred Compensation and an IRA, which I later converted to a Roth IRA.

If you are able to contribute to a Deferred Compensation program, such as is offered to Ohio public employees, the tax benefits are substantial.
Reply With Quote Quick reply to this message
 
Old 06-04-2014, 11:29 PM
GLS
 
1,985 posts, read 4,849,660 times
Reputation: 2408
Quote:
Originally Posted by Thinking-man View Post
Since the interest paid on mortgages is presumably a big chunk of tax write off, i'm wondering what some of you folks did to offset that 'loss of tax benefits' once your mortgage was paid off!.....
I had a big frown on my face April 15th................but a big smile on my face the remaining 364 days.
Reply With Quote Quick reply to this message
 
Old 06-05-2014, 06:44 AM
 
3,682 posts, read 4,942,236 times
Reputation: 2422
Quote:
Originally Posted by GLS View Post
I had a big frown on my face April 15th................but a big smile on my face the remaining 364 days.
So you couldn't find anything to offset it?
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top