That dreaded tax day is coming up on everyone.

2023 was a far better year than my 2022 tax year. It was my first year getting hit with six figure income tax bill. But I had a few 1031's that didn't work out completely. So where I had to claim the income, at least I had plenty of cash on hand. Just the same, it hurts to write out those checks.

I am finding that if I can't buy someone's house outright when I meet with them, I will then shift gears to plan B - purchasing an option to purchase the place within the next 12 months. I tell the folks that they have nothing to loose as long as I have the right of first refusal.

So for others who would like to share - how did 2023 compare to 2022. What are you doing differently than the previous year and how did it change things for you

RayRay,

Congrats on a big tax bill!! That means you made some MUN-A!

Here, each year is getting better. Rents are unbelievably high, and every month another prop is paid off.

I finally did something I should have done years ago - got a second opinion. I paid a CPA to review my tax returns from the last few years. Found him on Dave Ramsey's website Endorsed Local Provider. The guy is giving me top service because he wants a good review on Ramsey.

He made a few suggestions which reduced the tax bill for each year by $27,000 each.

Tip: 2021's filing deadline was in May (pandemic) so you can file an amended '21 return until May. One opinion thinks it's Oct because our extension was not filed until Oct.

Planning on writing $75K to Uncle.

It's the most I've ever paid and it hurts.

CPA says - it means you made money.

Debating with myself on a 1031 or cash out finance.

Also considering hard money lending - I'll be the bank.

Prices of new investments I've been looking at do not make sense to me. Even off market stuff is crazy.

Owed as well. Sold some property so we knew it was coming. Tricky..you get money for awhile and then have to pay back depreciation, and cap gains. Isn't right because you buy low and sell high. Like those who play the system. I pay for thier housing, etc because I did well. Most of them are able to work at least PT but benefits are better if they don't.

Sigh. So I have to file an extension and had to send 2023 fed and state estimated owed and 2024 fed and state 1st quarter estimated for a total of close to $60K.

Sent the biggest checks ever, due to selling 2 last year & no 1031.

What is extra irritating is that I need to send 1/4-ly's to match it for next year, knowing I won't sell anything this year, but will hold what I have. Therefore I'll have a big refund next year.

Also writing some good-sized checks this year, but at least they are smaller than last year. The 1031 really helped! Wish I could've tied the sale of my mini-storage into it from 2022...but that one came up suddenly and wanted to close quickly. That one was ouch-o. Still, as Brad says, this means we are succeeding!

I look at it more from the percentage side vs raw dollars. We went down from effective tax rate of 14% to 10%. Means we made some wise decisions. Need to get wiser. I'd like to see that number drop as close to 0% as possible.

I hear ya DJ.

Ended up accidentally selling two houses in a year. Got hit with a big bill and put on quarterly for a long while after.

Didn't sell anything for years but was still paying quarterly and getting money back. I prefer net zero, but it never happens. Second is for me to pay a small amount.

Well I sold one place last year and bought and sold a house to my kid. I guess because it was not over a year from purchase I still got hit with taxes on it.

That stinks, but she got a great deal from me gifting equity. Just should have held the house for a few more months I guess.

You guys with the huge tax bills amaze me. I know I am in a small, low income area but wow!

Easy come easy go.

Would you have rather made a lot less money and paid nothing in taxes?

Perhaps we need DJT's accountant?

Or, perhaps we need to learn accounting?

Maybe both?

Brad,

What were some of the suggestions from the Ramsey ELP that saved you on taxes?

BillW, in my case I sold two houses, which is not typical of me in a year.

We had estimated what we needed to hold back from the one place but the other dinged us and we were under the impression it was all clear.

Thanks Jim!