Author Topic: Taxes: Big Money...?  (Read 6074 times)

Offline BoBangall

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Taxes: Big Money...?
« on: February 25, 2019, 02:03:53 AM »


Had a huge windfall and owe 400,000 in Fed taxes. Just incredibly fortunate.

Do you think the following is possible to maximize point earning potential?

I think I am eligible to apply for Freedom unlimited.  Might be close on 5 of the5/ 24.

I have csr, club, marriott luxury.

If I get the unlimited I would ask to consolidate all credit limits to it.  Have almost 80k in cl.  

Then charge and pay taxes atc1.87% processor with the Unlimited 3 times or whatever processing will allow.

If I move quick I can get the card charged and paid 2 or 3 times.  Pay any remaining balance with check.

Does this sound doable?

How would you proceed?

Thanks for your comments.

Offline S209

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Re: Taxes: Big Money...?
« Reply #1 on: February 25, 2019, 01:09:17 PM »

Had a huge windfall and owe 400,000 in Fed taxes. Just incredibly fortunate.

Do you think the following is possible to maximize point earning potential?

I think I am eligible to apply for Freedom unlimited.  Might be close on 5 of the5/ 24.

I have csr, club, marriott luxury.

If I get the unlimited I would ask to consolidate all credit limits to it.  Have almost 80k in cl. 

Then charge and pay taxes atc1.87% processor with the Unlimited 3 times or whatever processing will allow.

If I move quick I can get the card charged and paid 2 or 3 times.  Pay any remaining balance with check.

Does this sound doable?

How would you proceed?

Thanks for your comments.
You’re going to be paying a steep price for UR points. You have a plan to use them? Now that you’re rich..  ;)
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Offline Dan

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Re: Taxes: Big Money...?
« Reply #2 on: February 25, 2019, 01:17:30 PM »
You’re going to be paying a steep price for UR points.
Why is that a steep rate?
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Offline aygart

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Re: Taxes: Big Money...?
« Reply #3 on: February 25, 2019, 01:27:32 PM »

Had a huge windfall and owe 400,000 in Fed taxes. Just incredibly fortunate.

My grandfather used to say "I give you a brocha (blessing) that you should pay a lot of taxes"
Feelings don't care about your facts

Offline PlatinumGuy

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Re: Taxes: Big Money...?
« Reply #4 on: February 25, 2019, 01:28:20 PM »
Why can't you pay the balance early and make it through the full 400k?
״וזה כלל גדול: שישנא אדם כל דבר שקר. וכל מה שיוסיף שנאה לדרכי השקר – יוסיף אהבה לתורה.״ - אורחות צדיקים

Offline Mordyk

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Re: Taxes: Big Money...?
« Reply #5 on: February 25, 2019, 01:42:53 PM »

Had a huge windfall and owe 400,000 in Fed taxes. Just incredibly fortunate.

I'm your missing brother. i miss you soooo much! feel free to PM where to pickup my share.

Offline jj1000

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Re: Taxes: Big Money...?
« Reply #6 on: February 25, 2019, 01:49:41 PM »
I'm your missing brother. i miss you soooo much! feel free to PM where to pickup my share.
Never realized we were related!
See my 5 step program to your left <--

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Offline gingyguy

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Re: Taxes: Big Money...?
« Reply #7 on: February 25, 2019, 02:38:34 PM »

Had a huge windfall and owe 400,000 in Fed taxes. Just incredibly fortunate.

Do you think the following is possible to maximize point earning potential?

I think I am eligible to apply for Freedom unlimited.  Might be close on 5 of the5/ 24.

I have csr, club, marriott luxury.

If I get the unlimited I would ask to consolidate all credit limits to it.  Have almost 80k in cl. 

Then charge and pay taxes atc1.87% processor with the Unlimited 3 times or whatever processing will allow.

If I move quick I can get the card charged and paid 2 or 3 times.  Pay any remaining balance with check.

Does this sound doable?

How would you proceed?

Thanks for your comments.
this is not the place to make a new user name! thats only in the thread where you lost tons of $ not where you gained !
May you slide down the banister of happiness & get many splinters of success up your career.

Offline Emkay

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Re: Taxes: Big Money...?
« Reply #8 on: February 25, 2019, 02:44:10 PM »

Had a huge windfall and owe 400,000 in Fed taxes. Just incredibly fortunate.

Do you think the following is possible to maximize point earning potential?

I think I am eligible to apply for Freedom unlimited.  Might be close on 5 of the5/ 24.

I have csr, club, marriott luxury.

If I get the unlimited I would ask to consolidate all credit limits to it.  Have almost 80k in cl. 

Then charge and pay taxes atc1.87% processor with the Unlimited 3 times or whatever processing will allow.

If I move quick I can get the card charged and paid 2 or 3 times.  Pay any remaining balance with check.

Does this sound doable?

How would you proceed?

Thanks for your comments.
Streicher? Is that you?

Offline gingyguy

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Re: Taxes: Big Money...?
« Reply #9 on: February 25, 2019, 02:48:56 PM »
May you slide down the banister of happiness & get many splinters of success up your career.

Online TimT

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Re: Taxes: Big Money...?
« Reply #10 on: February 25, 2019, 02:59:40 PM »
this is not the place to make a new user name! thats only in the thread where you lost tons of $ not where you gained !
You're right. My apologies🤑🤑

Offline mercaz1

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Re: Taxes: Big Money...?
« Reply #11 on: February 25, 2019, 03:59:24 PM »
My grandfather used to say "I give you a brocha (blessing) that you should pay a lot of taxes"

not a great bracha
haven't you heard the wealthier you are the less in taxes you pay

Offline aygart

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Re: Taxes: Big Money...?
« Reply #12 on: February 25, 2019, 05:24:02 PM »
not a great bracha
haven't you heard the wealthier you are the less in taxes you pay
Don't you know that it is untrue?
Feelings don't care about your facts

Offline Mordyk

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Re: Taxes: Big Money...?
« Reply #13 on: February 25, 2019, 05:48:36 PM »
not a great bracha
haven't you heard the wealthier you are the less in taxes you pay
how poor can you be with a $400k tax bill??

Offline S209

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Re: Taxes: Big Money...?
« Reply #14 on: February 25, 2019, 11:17:33 PM »
Why is that a steep rate?
Not steep, it’s a good price, but keep in mind you’re basically buying points for below market. It’s not like getting 2+ ppc, where it would be an actual no brainer. There are ways to do this that make it much more lucrative.
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Online shapsam

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Re: Taxes: Big Money...?
« Reply #15 on: February 25, 2019, 11:20:51 PM »
Not steep, it’s a good price, but keep in mind you’re basically buying points for below market. It’s not like getting 2+ ppc, where it would be an actual no brainer. There are ways to do this that make it much more lucrative.
Visa GCs?

Offline gozalim

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Re: Taxes: Big Money...?
« Reply #16 on: February 25, 2019, 11:21:08 PM »
how poor can you be with a $400k tax bill??
in NY, about $1M
hardly justifies the the 'relative finding' upthread.

Offline EJB

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Re: Taxes: Big Money...?
« Reply #17 on: February 26, 2019, 12:12:30 AM »
in NY, about $1M
hardly justifies the the 'relative finding' upthread.

Federal taxes, not state.

And assuming income, none of it has been paid so far, married, no deductions, and no tax planning, ~$1.3M. More likely capital gains, which is closer to $1.9M.

Offline BoBangall

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Re: Taxes: Big Money...?
« Reply #18 on: February 26, 2019, 12:47:49 AM »
Thank you all for the great comments.

It was a collectible at 1.3 that was gifted to me with no cost basis.  I'm seeing if I can determine cost basis at time of gift to try to help lower the cost but not sure that will fly with my CPA.

In order to keep things feeling fair with my siblings I am gifting/paying for their kid’s college for the next year which is adding up and has not left as much as you might think.  I’m really happy to do that and not having kids myself I’m amazed at what parents sacrifice to educate their children!

I’m paying the whole tax as a result and happy to do it (it's a good problem to have as was mentioned above). Well....sort of.....

Here’s my math.

400 x 1.87 = $7,480.

$400k x 1.5 Freedom unlimited should equal 600,000 Ultimate Reward points.

It seems it’s worth doing but.....is there a better way which is why I posted.

Since I’ll be traveling with my wife I’d be betting I can find 2 or 4 business class or better flights via the chase portal that will cost more than $7,500.

We’ll see if I get the Unlimited card and if they will work with me on the CL.
As soon as the charges post I’ll pay it.  A week at a time and some delays and I should be able to clear by tax day.

There is the processing that they say will only allow 2 or 3 charges.  So I might be out of luck there.

What would be a good second card to use?  Club Card? but them I’m limited to United and don’t get to accrue points.

If there is a better strategy someone might like to share I’m all ears.

VGC but I don’t have an easy way to liquidate.
I'm still living in wallyworld.

Thanks again all.

Offline Dan

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Re: Taxes: Big Money...?
« Reply #19 on: February 26, 2019, 12:51:05 AM »
No reason to use UA Club over Freedom or Ink Unlimited.
AMEX Blue Biz earns 2ppd, but that's capped at $50K/year.
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.