What to do to get the most tax benefits.....? (IRAs, 401k, mortgage)

[Thinking-man]

Let's assume a situation where the person doesn't have a mortgage or any other debt. A rental place where the interest is a tax write-off (but unfortunately offset by the rent collected 'income'). also maxing 401k and ira. (wife is self employed and does not contribute to a 401k, but does so to an ira)

what can the person in this situation do to lower tax liabilities (if any)?

[reed303]

Do you have children ?? If not, get some.

[Thinking-man]

Originally Posted by reed303

Do you have children ?? If not, get some.

haha
yes. got two little ones.

[Lowexpectations]

Children aren't the answer. I added one to my return and it only changed what I owed by 400.00 that included plugging in daycare cost etc.


What kind of Ira does your wife have? Sep iras I believe you can contribute 51k or 25% of comp whichever is less and I think that's deductible

[Thinking-man]

We both have a roth, but i'm thinking of changing both to traditional for 2014. we're contributing 5500 a piece. The problem is that she only makes about 10k right now, working only part time, given two toddlers...

[Lowexpectations]

Originally Posted by Thinking-man

We both have a roth, but i'm thinking of changing both to traditional for 2014. we're contributing 5500 a piece. The problem is that she only makes about 10k right now, working only part time, given two toddlers...

You cant have a traditional, make deductible contributions and be covered by a 401k. Starting an Ira for her with deductible contributions would lower your income

[LordSquidworth]

What's your age and tax bracket?

[Thinking-man]

Originally Posted by Lowexpectations

You cant have a traditional, make deductible contributions and be covered by a 401k. Starting an Ira for her with deductible contributions would lower your income

I'm not sure i understand the above. can you please explain?

Originally Posted by LordSquidworth

What's your age and tax bracket?

33 and 35. not sure about the bracket........probably 25%

[jtur88]

Isn't "tax benefit" an oxymoron?

[Thinking-man]

Originally Posted by jtur88

Isn't "tax benefit" an oxymoron?

maybe it is.
i'm trying to find ways of legally lowering my tax obligations, if that makes more sense.