If you have a child in college, then contribute $7,500 to the Indiana College Choice 529 Plan, and then turn around and put that money back into your checking account. You don’t need to leave the 529 funds in the 529 to get the $1,500 Indiana tax credit (i.e., save $1,500 of Indiana tax each year you do this).
Want to Flip Houses Tax Free?
Want to Build Tax-Free Wealth and Leave it to your Children?
A Roth IRA is one of the best wealth transfer vehicles available: You contribute money, that money grows, you never have to take the money out while you are alive, you die and your spouse doesn’t have to take money out and the money continues to grow, then your kids have 10 years to drain the account after your spouse dies. This means that the $7K you contributed this year might be able to grow 50 years AND all of the growth is tax-free.
Do You Have a Rental Loss this Year?
Rental losses are passive losses and are not typically able to be used to reduce your ordinary income. But if your AGI is under $100,000, you can deduct up to $25,000 of your rental loss. If you are a real estate professional you can deduct all of your rental loss no matter what your income is. Using cost-segregation strategies, we can make sure that your rental shows a loss on your tax return, even if it produces positive cash-flow.