Now that the tax laws have changed, anyone have suggestions on how to set up a business so that blackjack earnings can be applied to a KEOGH? What issues should be considered on what type (legal structure) of business to establish?
Thanks,
Bruce
You might want to consider how you claim your income. The IRS does not care where it comes from as long as they can tax it.
On your tax forms you have a place for misc income that they do not ask much about. This contributes to your overall gross income which is where you figure your contribution amount from.
After you have the income, a good tax attorney can advise you on the best form to keep it safe.
You might also set up a "None Revocable Trust" so that in no way form or manner can anyone take the assets within it from you.
Nerny nerny ner, ner!!!!
Thanks, Raven. Do you mean the unearned income line (where the IRS usually advises putting gaming earnings)? I'm not sure that is allowed to be applied to a KEOGH, but then, the reason I'm asking the question is I'm not sure. The pamphlet I got on opening a KEOGH account said that any earnings from self-employment could be applied.
For those of you who don't know, with the recent tax changes that went into effect January 1st, you may now put up to 100% of self-employment income into a tax deferred KEOGH account (there are certain limits, but from my perspective they are irrelevant). Up until now, you've only been able to put up to 25%. Since over the past 6 years I've been making from $3500 to $10,000 off BJ as a "weekend warrior", I never felt the 25% was worth the paperwork. But now if I can put in 100%, well, that's another kettle of fish.
