Replies to This Discussion

Permalink Reply by Cathaus on July 30, 2008 at 5:16

I just heard a commercial on the radio. It was a banker from one of our local banks. He said if you haven't already negotiated and received a bonus payment, there is a way to avoid paying 41% in taxes. I will be looking into it and letting others know what I find out.

• ▶ Reply

Permalink Reply by Renee S Cd1 on July 30, 2008 at 5:42

There is an excellent article in the Times by Tommy Williams, certified financial planner, who also mentions 41%. He explains in layman's terms the neatest trust, where if you had $1M (dream on), you would be in a position to receive income on the full million rather than the remaining $590.000. Think of all the people who will sqander their money.

• ▶ Reply

Permalink Reply by kfly on July 30, 2008 at 5:37

Put some money away, you'll be paying taxes on bonus and royalties. If the income amounts to much, you'll be paying taxes quarterly.

• ▶ Reply

Permalink Reply by ez on July 30, 2008 at 6:11

the goverment just cant figure out why the economy is so bad! lets see ? because they take half our money and what the dont get the o/g com. get the rest when we fill up at the pump. heck maybe i should call bush and fill him in....lol

• ▶ Reply

Permalink Reply by insomniacnla on August 3, 2008 at 13:29

Hey Shalegold,

You must have visited Ms. Fraizer? If so, she was more than patient with me and did not just tell me what I needed to do, she explained WHY I would need to do those things, including an LLC PRIOR to any well being drilled. I really liked her. I do not need to set-up an LLC when I receive my bonus money because it may take a few years for a well to be drilled, if ever. But, when the company is close to finalizing the drilling plans and before the well is drilled, then I set-up the LLC.

I heard Tommy Williams speak of his plan and how to put the money into a Trust. He said that the Trust would go to my heirs and I could take out a life insurance policy and my heirs could use the insurance money to pay off any inheritance taxes. His plan had a lot of variables and too many "ifs" for me. It still ended up that the money would be taxed at some point so I decided to get it over with and to go ahead and pay what I may owe so my children will not have to.

• ▶ Reply

Permalink Reply by Donna Thornton on July 30, 2008 at 7:07

You will receive a 1099 MISC for the bonus lease money. The amount you were paid and will claim on your return will be in box 1. You will file this on you 1040, Schedule E. You will owe federal income tax on it by the percentage of whatever tax bracket you fall into. Likewise, any royalties you receive will on a 1099 MISC. It will be posted in box 2. This money is also claimed on the 1040, Schedule E.

• ▶ Reply

Permalink Reply by network administrator on July 30, 2008 at 8:30

Best thing to do is a charitable trust ... 100% of the bonus money goes into the trust with 100% tax credit for the income received. Money can then be drawn out based on life expectancy; all but 10% may be drawn out. Only catch is, u die early then everything left will go to charity. Can be supplemented with life insurance to protect love ones.

• ▶ Reply

Permalink Reply by smith1 on August 3, 2008 at 13:06

Went to see CPA, Steve Roberts on Olive Street, Shreveport, this past Friday (initial consult is free). Very informative on bonus money, royalties, taxes, planning, etc.
Might want to consult him and their wealth advisors.

• ▶ Reply

Permalink Reply by Two Dogs, Pirate on August 3, 2008 at 13:27

You have to pay the full amount of social security, your employer is not paying half of it for you.

• ▶ Reply

Permalink Reply by Cherrie Groves on August 26, 2008 at 8:26

This is ordinary rental and royalty income. There is no social security (or self-employment tax) burden on these payments.
Cherrie Groves, EA

• ▶ Reply

Permalink Reply by mike wilson on August 3, 2008 at 13:33

You can invest some back into the haynesville shale play also and get a little richer thats what I am doing...Good luck.

• ▶ Reply

Permalink Reply by Snake Stewart on August 3, 2008 at 13:44

If you would be so kind as too give a fello a little bit more advice ..... Where do you feel would be a good spot for a small time investment like myself ? Haven't signed yet but would still like to capitalize on it. Will probably send a huge chunk ( - taxes anyway ) into something somewhat safe but with a good chance for growth. I am not a gambler but I know the risks involved with prospects for good returns.

• ▶ Reply

• ‹ Previous
• 1
• 2
• Next ›
• Page