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If you make over 300k a year in salary do get taxed up the a.ss. The way to build wealth is mostly through real estate mostly commercial and housing properties but also through the stock market. I know a few investors that made millions just through buying Apple and Microsoft over the years buying really low and selling high and tons of shares.
A single person earning 300k gross maxing their 401k would pay somewhere around 25% in fed taxes baring some amt issue
With really only a few triggers, high state and local taxes and cap gains being the two big drivers it doesn't really have to be a good chance they hit it
Yet government attacks and taxes the oblivion out of people who hasn't had time to build that kind of wealth. Then people complain that it's too hard for them to get rich (build wealth) ...Got to love it
Quote:
Originally Posted by petch751
Taxes don't prevent you from building wealth, it does make it harder which is what I said. But lets just ignore that part.
That's not exactly what you said
Quote:
Originally Posted by petch751
Yet government attacks and taxes the oblivion out of people who hasn't had time to build that kind of wealth. Then people complain that it's too hard for them to get rich (build wealth) ...Got to love it
Quote:
Originally Posted by Lowexpectations
It's hard for most people to build wealth because most are bad with money. It's not taxes that prevent most from building wealth
With really only a few triggers, high state and local taxes and cap gains being the two big drivers it doesn't really have to be a good chance they hit it
Triggers for AMT tax
State and local taxes. If you itemize, there’s a good chance you claim a deduction for state and local tax, including income tax or sales tax and, if you own a home, property tax. But those who don't pay state taxes rarely if at all have to worry about this trigger.
Personal exemptions. Believe it or not, personal exemptions contribute to AMT liability. The more exemptions you claim, the more likely it is that you’ll have AMT liability.
Long-term capital gains. The reasons are a little complicated, but mainly have to do with the fact that a large capital gain reduces or eliminates the AMT exemption amount
Tax-exempt interest. Interest that’s exempt from the regular income tax may or may not be exempt from the AMT.
Then there all the deductions that get phased out.
State and local taxes. If you itemize, there’s a good chance you claim a deduction for state and local tax, including income tax or sales tax and, if you own a home, property tax. But those who don't pay state taxes rarely if at all have to worry about this trigger.
Personal exemptions. Believe it or not, personal exemptions contribute to AMT liability. The more exemptions you claim, the more likely it is that you’ll have AMT liability.
Long-term capital gains. The reasons are a little complicated, but mainly have to do with the fact that a large capital gain reduces or eliminates the AMT exemption amount
Tax-exempt interest. Interest that’s exempt from the regular income tax may or may not be exempt from the AMT.
Then there all the deductions that get phased out.
No, re-read. You may be into paying taxes and sticking it to the so called rich. By the way, a 200k income, does not mean you are not rich by any sense of the imagination. but if you are into paying taxes then go ahead and pay more!
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