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The evil 5 letter word "TAXES"


General Business Discussions

A place to talk about general business discussions.
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  #21  
Old 12-23-2011, 08:11 PM
Chaz Chaz is offline
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now what if you invested this into a CD or a bond? would you still have to pay income taxes on it?
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  #22  
Old 12-24-2011, 12:25 PM
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now what if you invested this into a CD or a bond? would you still have to pay income taxes on it?
From what I know, if you buy a cd or a bond, you buy it with post taxed money. Meaning this is money you have already paid tax on.

I do believe there are some bonds that you don't have to pay an income tax on the interest but I don't know much about them.

On the other hand, with an 401k there is a type you can put money in that is pre-taxed. Then you pay tax on it after you pull it out when you are retired. With the goal being, you will be in a lower tax bracket at that point in life.

Ultimately, it is very important to not spend money on things you don't need. Running a streamlined operation and banking as much money as possible is your best bet for business longevity.
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