What can i do to keep more of my sales comission from tax?

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Discussion Overview

The discussion revolves around strategies for minimizing tax liabilities on sales commissions. Participants explore various approaches and considerations related to tax planning, including employment status and investment options.

Discussion Character

  • Debate/contested
  • Technical explanation
  • Exploratory

Main Points Raised

  • One participant inquires about the employment status of the original poster (independent contractor vs. regular employee) and the type of retirement contributions being made.
  • Another suggests that the topic may be more appropriate for a financial forum.
  • A participant humorously proposes illegal methods for avoiding taxes, mentioning offshore accounts and complex money transfers.
  • One suggestion is to convert commissions into contributions to a 401(k) or IRA as a way to reduce taxable income.
  • Another participant notes that if the original poster is salaried, taxes are deducted at source, limiting options for tax minimization.
  • Buying rental property and deducting mortgage interest is proposed as a potential strategy for tax reduction.
  • A follow-up on the rental property suggestion humorously includes the idea of deducting personal expenses as rental expenses, while cautioning against tax cheating.

Areas of Agreement / Disagreement

Participants express a range of opinions on effective tax strategies, with no consensus reached on the best approach. Some suggestions are serious, while others are humorous or questionable.

Contextual Notes

Participants have not fully explored the implications of different employment statuses on tax strategies, and there are unresolved assumptions regarding the original poster's financial situation and goals.

Who May Find This Useful

Individuals seeking to understand tax strategies related to sales commissions, especially those considering different employment arrangements or investment options.

rody084
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hi,

i am going to be getting sales commission on our projects at my company and I want to know what kind of tax strategy will be best for me. My employer is willing to pay that commission in whatever way I prefer...so I am wondering if anyone has any advice for me as to how I can avoid having a huge chunk of my commissions taken by taxes.

near $30k every year is getting taken out of my paychecks...im fine contributing for worthy causes and helping the underpriviledged...but come on! most of this money is going to the "war" on iraq anyway. :(

i would greatly appreciate any help!

thank you!

Rody
 
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Are you being paid as an independent contractor (1099) or as a regular employee? What type of contributions (pre-tax/post-tax) are you making to an IRA or 401K?
 
This is probably better suited for a financial forum.
 
What you could do is to transfer the money through some off-shore cayman accounts, re-route it through the coruptive parts of northern siberia. The more transfers you make, the harder it is to follow the money trail, especially if it is via unofficial channels. Your best bet is to do it via a computer.
 
Last edited:
If the commission isn't money you're going to miss (judging from what you say is taken out of your paycheck, I'd guess this is the case), I'd turn the commission into a 401(k) contribution or stick it into an IRA. Otherwise I think you'll probably get better answers consulting with a financial planner.
 
If you are on sallary you will be taxed at source (AFAIK), so u can't do anything. If you are Independent or have your own Company then you can minimise the amount of tax you pay legally... So what are you?
 
Buy rental property and deduct the mortgage interest.
 
loseyourname said:
Buy rental property and deduct the mortgage interest.

And use all your personal expenses as "rental expenses" :smile: :smile: :smile: Within reason of course...

I mean... don't cheat on your taxes
 

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