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Re: pension ideas for high income individual
Posted: Sat Oct 03, 2020 11:36 am
by Kanto
kenosecon wrote: ↑Sat Oct 03, 2020 3:12 am
thanks for all the replies.
I maxed out Nisa, didn't do the ideco.
I filled as an individual business reducing my tax break intensely.
It's easy to do, I used the white form but if you use the blue one you get more deductions.
You need to create a side business that gives you a recurrent income.
I put consulting. So I'm my own consultant managing the stocks portfolio lol...
As well as any other consulting I can think off.
I put a lot of losses and my tax bracket went down.
I also did the furusato nozei and got nice beef out of my taxes.
anything else we can do?
Can I ask why you did not go with iDeco? Do you plan to retire outside of Japan?
Re: pension ideas for high income individual
Posted: Sat Oct 03, 2020 12:55 pm
by fools_gold
kenosecon wrote: ↑Sat Oct 03, 2020 3:12 am
You need to create a side business that gives you a recurrent income.
I put consulting. So I'm my own consultant managing the stocks portfolio lol...
As well as any other consulting I can think off.
Isn't this just tax fraud?
Re: pension ideas for high income individual
Posted: Sat Oct 03, 2020 1:03 pm
by adamu
kenosecon wrote: ↑Sat Oct 03, 2020 3:12 am
I filled as an individual business reducing my tax break intensely.
It's easy to do, I used the white form but if you use the blue one you get more deductions.
You need to create a side business that gives you a recurrent income.
I put consulting. So I'm my own consultant managing the stocks portfolio lol...
Adding to the questions...
Can you do that even though you're a salaried employee? Do you actually have to register a business, or just say you're running one? What sort of losses did you put?
Re: pension ideas for high income individual
Posted: Sat Oct 03, 2020 1:04 pm
by Beaglehound
fools_gold wrote: ↑Sat Oct 03, 2020 12:55 pm
kenosecon wrote: ↑Sat Oct 03, 2020 3:12 am
You need to create a side business that gives you a recurrent income.
I put consulting. So I'm my own consultant managing the stocks portfolio lol...
As well as any other consulting I can think off.
Isn't this just tax fraud?
There is a reason the rich keep getting richer
Re: pension ideas for high income individual
Posted: Mon Oct 05, 2020 9:25 am
by kenosecon
No, of course it's not tax fraud since it's the truth. It's a proper business with continuity and perpetual/long term earning.
I also consult for other friends. Same would be if you buy a property and rent it.
If you use the white sheet you don't need to register anything. If you want to use the blue sheet you need to send two documents to the tax office.
pretty easy but they have to be sent before march each year.
I deducted all I could deduct. Rents, travel, restaurant, marketing, investigation, etc. Just the usual suspects.
My tax bracket was lowered considerably. (-5 million)
I didn't do the ideco since it doesn't let you take out money until 60. So I put all in the NISA instead.
Also I didn't have the time.
hope this help other folks.
Re: pension ideas for high income individual
Posted: Mon Oct 05, 2020 9:49 am
by Kanto
kenosecon wrote: ↑Mon Oct 05, 2020 9:25 am
No, of course it's not tax fraud since it's the truth. It's a proper business with continuity and perpetual/long term earning.
I also consult for other friends. Same would be if you buy a property and rent it.
If you use the white sheet you don't need to register anything. If you want to use the blue sheet you need to send two documents to the tax office.
pretty easy but they have to be sent before march each year.
I deducted all I could deduct. Rents, travel, restaurant, marketing, investigation, etc. Just the usual suspects.
My tax bracket was lowered considerably. (-5 million)
I didn't do the ideco since it doesn't let you take out money until 60. So I put all in the NISA instead.
Also I didn't have the time.
hope this help other folks.
If those truly are business expenses, of course, that makes sense. However, you phrased it to seem like you were setting up a business to writeoff your own personal expenses. Which would be fraud.
Ideco allows you to invest tax-free and withdrawal tax-free. You might want to set it up when you have more time. There is no better way to reduce your taxable income.
Re: pension ideas for high income individual
Posted: Mon Oct 05, 2020 2:13 pm
by fools_gold
kenosecon wrote: ↑Mon Oct 05, 2020 9:25 am
No, of course it's not tax fraud since it's the truth. It's a proper business with continuity and perpetual/long term earning.
I also consult for other friends. Same would be if you buy a property and rent it.
If you use the white sheet you don't need to register anything. If you want to use the blue sheet you need to send two documents to the tax office.
pretty easy but they have to be sent before march each year.
I deducted all I could deduct. Rents, travel, restaurant, marketing, investigation, etc. Just the usual suspects.
My tax bracket was lowered considerably. (-5 million)
I didn't do the ideco since it doesn't let you take out money until 60. So I put all in the NISA instead.
Also I didn't have the time.
hope this help other folks.
I'd be very surprised if the tax office considered investing in a NISA as a "proper business".
Re: pension ideas for high income individual
Posted: Wed Oct 07, 2020 9:35 am
by kenosecon
Sure, tax office accepted it without problem.
Re: pension ideas for high income individual
Posted: Wed Oct 07, 2020 10:49 am
by Kanto
kenosecon wrote: ↑Wed Oct 07, 2020 9:35 am
Sure, tax office accepted it without problem.
The tax office does not audit every single application. That would be burdensome. Audits are selective by nature, and my understanding is they are a bit more frequent in Japan.
Did you hear the recent news about the government coming down hard on tax-cheats who fudged their finances to apply for the Corona subsidy?
Please make very sure you did not set yourself up to fail here.
Re: pension ideas for high income individual
Posted: Thu Oct 08, 2020 12:31 am
by fools_gold
kenosecon wrote: ↑Wed Oct 07, 2020 9:35 am
Sure, tax office accepted it without problem.
Have you actually checked into whether you can do this? From what I understand, capital gains are taxed separately from other income. Also you actually have to sell something for it to be classified as income.
