B
bob175
Guest
What is the name of your state? Virginia
Hello,
I am seeking advice of the best way to receive a $500,000 windfall. Here's the situation:
My father is selling the company business. All stock in the corportation is owned 50-50 by he and my mother. After the sale is complete, I will be receiving the above amount, either from him, or the company.
Since I will no longer be employed, what is the best way for him to "bonus" me this money, to reduce the taxes? My accountant is estimating take home will be around $267,000.00 after taxes, which is alot lower than what I expected. (My yearly tax bracket is currently based on $110,000.00 income per year. )
The following ways have been suggested to me, as a way to "get the money to me", and reduce my tax burden:
1 - Have my father set up two college fund accounts from the new educational law that came into effect last year for my children, with $100,000 each, which would go in, tax free. After their college is paid for (their currently 8 and 10 yrs old), which I would have to do anyway, I can then withdrawal or keep the overage, for retirement, and there is no tax fee. I could just roll it into another investment (? - correct?).
2 - After the above $200,000 has "gotten to us", have my parents gift, me, my wife, and two children, $21,000 each. That removes another $84,000, that just goes in our bank account, then transferred to a money market, or mutual fund.
That brings me down to a taxable income amount received of $216,000.00 left, which would reduce my taxes. Is there anything else that can be done to lower this amount?
Other than an initial $40,000 needed right away from the total $500,000, the rest ($460,000) was meant to be put away for retirement, since my 401K is very low. With that said, can anyone think of a legal way, I can get this $500,000, to me and my wife, with very little tax?
Thanks!
Bob
Hello,
I am seeking advice of the best way to receive a $500,000 windfall. Here's the situation:
My father is selling the company business. All stock in the corportation is owned 50-50 by he and my mother. After the sale is complete, I will be receiving the above amount, either from him, or the company.
Since I will no longer be employed, what is the best way for him to "bonus" me this money, to reduce the taxes? My accountant is estimating take home will be around $267,000.00 after taxes, which is alot lower than what I expected. (My yearly tax bracket is currently based on $110,000.00 income per year. )
The following ways have been suggested to me, as a way to "get the money to me", and reduce my tax burden:
1 - Have my father set up two college fund accounts from the new educational law that came into effect last year for my children, with $100,000 each, which would go in, tax free. After their college is paid for (their currently 8 and 10 yrs old), which I would have to do anyway, I can then withdrawal or keep the overage, for retirement, and there is no tax fee. I could just roll it into another investment (? - correct?).
2 - After the above $200,000 has "gotten to us", have my parents gift, me, my wife, and two children, $21,000 each. That removes another $84,000, that just goes in our bank account, then transferred to a money market, or mutual fund.
That brings me down to a taxable income amount received of $216,000.00 left, which would reduce my taxes. Is there anything else that can be done to lower this amount?
Other than an initial $40,000 needed right away from the total $500,000, the rest ($460,000) was meant to be put away for retirement, since my 401K is very low. With that said, can anyone think of a legal way, I can get this $500,000, to me and my wife, with very little tax?
Thanks!
Bob