Anyone else planning to pull as much income into 2009 tax year?

[Swing low, sweet chariot. Comin' for to carry me home.]

I usually don't invoice the last 2-4 months of the year until the first week of the new year in order to defer until next year as much income as possible.  But, this year I am not going to push any 2009 income into 2010 because the Dems will probably be raising taxes in 2010.

Anyone else planning to do the same?

[Torie]

It make sense for certain folks with certain incomes in 2009 versus 2010 as an expectation, say folks who expect to have in excess of 200K-250K in taxable income or so in each year. Also there is a one year window to switch to a Roth ira from a traditional one in 2010 without the 100K limit, which complicates matters further.

[Richard]

Damn that is some hot-shot tax planning there!

[Swing low, sweet chariot. Comin' for to carry me home.]

Damn that is some hot-shot tax planning there!

what makes you think that?

[I spent the winter writing songs about getting better]

I can't control when my paychecks come in, so no, and even if I could I wouldn't because I'm not a stupid paranoid teabagger.

[opebo]

It seems the unavoidable observation is this - what sort of person thinks about 'tax' when they have an income in excess of 200,000 dollars?

The answer is, of course, the sort of person upon which the money is wasted.  Funny how often it is thus wasted.  Almost the norm.

[Swing low, sweet chariot. Comin' for to carry me home.]

It seems the unavoidable observation is this - what sort of person thinks about 'tax' when they have an income in excess of 200,000 dollars?

a smart person

[opebo]

It seems the unavoidable observation is this - what sort of person thinks about 'tax' when they have an income in excess of 200,000 dollars?

a smart person

But, the point is you only live a very brief time and if your incomes are in the $200-250,000 range, why not just enjoy rather than worry about the tax.

Now, my parents only gross in that range, not net taxable, but sheesh, they don't obsess about the tax - they leave that to the accountant.  Though I have to admit my dad steals hundreds in cash out of the free money box every month.

[Swing low, sweet chariot. Comin' for to carry me home.]

It seems the unavoidable observation is this - what sort of person thinks about 'tax' when they have an income in excess of 200,000 dollars?

a smart person

But, the point is you only live a very brief time and if your incomes are in the $200-250,000 range, why not just enjoy rather than worry about the tax.

it's not like it took more than a couple of minutes for me to decide not to defer 2009 income until 2010

though I will order and install a tankless hot water heater before the end of this year in order to get the 30% tax credit...then I hit the energy tax credit again in 2010 with some upgrades to keep my attic cool so that the air turbulence is minimal if an object I want to view with my telescope forces me to view through the air above the roof of my house.

[Bo]

I usually don't invoice the last 2-4 months of the year until the first week of the new year in order to defer until next year as much income as possible.  But, this year I am not going to push any 2009 income into 2010 because the Dems will probably be raising taxes in 2010.

Anyone else planning to do the same?

On whom do you think the Democrats will raise taxes on, and in what way?

[opebo]

...though I will order and install a tankless hot water heater before the end of this year in order to get the 30% tax credit...then I hit the energy tax credit again in 2010 with some upgrades to keep my attic cool so that the air turbulence is minimal if an object I want to view with my telescope forces me to view through the air above the roof of my house.

Well that last thing does sound like the extravagance of a true aristocrat, jmfcst, and not a social climber.  Admirable impracticality, and in the service of a truely absurd hobby.

But I would be careful with the tankless water heater - no amount of 'energy saving' is worth feeling cold water on your skin.  Remember the low-flow toilet!

[Swing low, sweet chariot. Comin' for to carry me home.]

...though I will order and install a tankless hot water heater before the end of this year in order to get the 30% tax credit...then I hit the energy tax credit again in 2010 with some upgrades to keep my attic cool so that the air turbulence is minimal if an object I want to view with my telescope forces me to view through the air above the roof of my house.

Well that last thing does sound like the extravagance of a true aristocrat, jmfcst, and not a social climber.  Admirable impracticality, and in the service of a truely absurd hobby.

I never intended to be a "social climber" - I drive a 97 Corolla, remember?

---

But I would be careful with the tankless water heater - no amount of 'energy saving' is worth feeling cold water on your skin.  Remember the low-flow toilet!

the one I am looking at has >7 gallon per minute flow...and we only have 2 bathrooms in our house and a dishwasher and washing machine....so I think that should be plenty.

Our water heater is ~12 years old and rumbles like a volcano and would cost $600 to replace, and we're always running out of hot water.  So I might was well spend $1400 (2000-600 tax credit) and get a tankless one.  At the same time, I'm also going to install a centralized water softener that I bought off a buddy that was moving.

[Sam Spade]

What do you think I've been doing (and/or advising my parents to be doing) for the entire year?  That's another reason why said year has been best year ever (income-wise).

That being said, I don't know exactly when major tax increases (other than the health-care stealth stuff) are coming exactly, but I do know that we'd better bet on it being sooner rather than later.

[bullmoose88]

Jmfcst,

Is it only the tankless water heaters that are eligible for the credit?  My father just ditched his 50+ year old heater for a new one about a month ago...(works great and is more efficient) just trying to see if there's an extra bonus in store.  No big deal if not.

[opebo]

...though I will order and install a tankless hot water heater before the end of this year in order to get the 30% tax credit...then I hit the energy tax credit again in 2010 with some upgrades to keep my attic cool so that the air turbulence is minimal if an object I want to view with my telescope forces me to view through the air above the roof of my house.

Well that last thing does sound like the extravagance of a true aristocrat, jmfcst, and not a social climber.  Admirable impracticality, and in the service of a truely absurd hobby.

I never intended to be a "social climber" - I drive a 97 Corolla, remember?

Yeah, sorry I was unclear.  I was thinking more along the lines of calling you a grind, a toiler, that sort of thing.  Not so much a social climber as focused on acquisitive behaviors - something for which the bizarre obsession with astronomy might be a saving grace (though not if you're pursuing it in the way I suspect you are...)

... My father just ditched his 50+ year old heater for a new one about a month ago...(works great and is more efficient) ...

Oh, it makes me sad to think of old water heaters and toilets being replaced.  Doesn't anyone appreciate the patina of age anymore?

I remember in one section of one of my father's warehouses we once had great racks full of '70s toilets - the wonderful high-flow kind, and all in rich hues of avacado and suchlike.  All lost now, long lost.  Who knows what happened.  I couldn't be around - had to be off chasing tail.

[Swing low, sweet chariot. Comin' for to carry me home.]

Jmfcst,

Is it only the tankless water heaters that are eligible for the credit?  My father just ditched his 50+ year old heater for a new one about a month ago...(works great and is more efficient) just trying to see if there's an extra bonus in store.  No big deal if not.

don't quote me on this because I could be wrong, but I believe the credit applies to the following:  "Energy Factor >0.82 OR a thermal efficiency of at least 90%."...which I think rules out electric water heaters and gas tank heaters with gravity exhaust.

...so it sounds like if it has a tank and is gas (or propane), it has to have a fancy exhaust system.  And it also has to be an upgrade to an existing home - credit doesn't apply to new homes.

[bullmoose88]

Jmfcst,

Is it only the tankless water heaters that are eligible for the credit?  My father just ditched his 50+ year old heater for a new one about a month ago...(works great and is more efficient) just trying to see if there's an extra bonus in store.  No big deal if not.

don't quote me on this because I could be wrong, but I believe the credit applies to the following:  "Energy Factor >0.82 OR a thermal efficiency of at least 90%."...which I think rules out electric water heaters and gas tank heaters with gravity exhaust.

...so it sounds like if it has a tank and is gas (or propane), it has to have a fancy exhaust system.  And it also has to be an upgrade to an existing home - credit doesn't apply to new homes.

Thanks.

As far as I know, this house uses oil heat...I will have to look at the accompaning documents to the heater for its specs.

[Richard]

Damn that is some hot-shot tax planning there!

what makes you think that?

Sarcasm.  I do taxes for a living, and pulling income into the current year from the next is a rather simple exercise.

I don't know what you do, but we go with more involved setups... of course, all of our clients make more than a million per year and they all work either for themselves or are in high management positions that will allow for offshore SPEs.

[Swing low, sweet chariot. Comin' for to carry me home.]

Jmfcst,

Is it only the tankless water heaters that are eligible for the credit?  My father just ditched his 50+ year old heater for a new one about a month ago...(works great and is more efficient) just trying to see if there's an extra bonus in store.  No big deal if not.

don't quote me on this because I could be wrong, but I believe the credit applies to the following:  "Energy Factor >0.82 OR a thermal efficiency of at least 90%."...which I think rules out electric water heaters and gas tank heaters with gravity exhaust.

...so it sounds like if it has a tank and is gas (or propane), it has to have a fancy exhaust system.  And it also has to be an upgrade to an existing home - credit doesn't apply to new homes.

Thanks.

As far as I know, this house uses oil heat...I will have to look at the accompaning documents to the heater for its specs.

oil water heaters are on the credit list...but I didn't mention it because an oil water heater doesn't mean anything to me, being from the south