Minimizing tax consequences...

I think there was a general discussion a while back but I can't seem to find it, so....

 

For those folks getting significant signing bonuses, how have you dealt with the tax consequences of being pushed into a higher tax bracket for the year you get the signing bonus? What about Alternative Mimimum Tax (AMT)? What other issues have you run into?

 

Same sorts of questions for royalty payments.

 

The reason I'm asking is that this gets into some specialized stuff and at least one accountant I spoke with was blowing smoke and clearly didn't have a clue about O&G income (signing bonus, royalty treatment, etc).

 

Mike

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Permalink Reply by scott peterson on February 26, 2012 at 3:19am

Beth my comment about" hard to believe" in regards to your earlier post was not doubting that your program can reduce tax liability but was doubting that it can "eliminate" all tax liability in respect to the landowner you cited who "saved $240,000 on over $600,000 in bonus" which is about a 40% savings which to me says zero tax liability.

Permalink Reply by Nelson Roe on February 26, 2012 at 6:34am

Scott,

With you & I both dealing with numbers as we do on a daily basis, I think you would find a more detailed explanation of this pretty interesting.  It may be worth the call.  Same deal as with KWGD & the landgroup, the more questions we asked the more interesting it became to me.  They can only discuss to a certain point in public forum.  The one-on-one is where you can see the detail.

Permalink Reply by Chartist on February 26, 2012 at 2:45am

I've been receiving royalty streams for 20 years.  They've been large, as in millions of dollars.  There's nothing you can really do to decrease your taxes.  Of course there's the obvious situations like IRA contributions.  But I don't think that's the gist of the original post.  You folks are looking for write-offs for a passive income stream.  There just aren't any unless YOU are involved in the drilling you can't write anything off.

Permalink Reply by LMS on February 26, 2012 at 2:50am

Does anyone know if there will be an Ameriprise Tax Seminar in Susquehanna Co. PA? 

Permalink Reply by Frank Walker on February 26, 2012 at 8:41am

You are correct, JOANN.  Ameriprise is a large company dealing in a wide range of financial products and services.  You can learn more about the company at this website:

Link to class actions

But wait.  There's more!

Do folks here believe Ameriprise would treat them with greater fairness and respect than it reserves for its own employees?  Do you want in your life a company accused of forging clients' signatures?

Read this. Then decide for yourself.

The line in there I enjoyed most, referring to Ameriprise employees, is this one:

"If you work for the dog food makers, they are probably going to serve you some dog food." 

If (when) their tax scheme comes apart at the seams, does Ameriprise sound to you like the kind of company that will have your back in the face of an IRS onslaught?  Good luck with that, brothers and sisters!

When it comes to Ameriprise, discard immediately your ten foot poles.  Go out to the barn and root around in the hayloft until you find your old twenty foot pole.  That's the one you need at the ready for this outfit.

These unlucky folks used only the ten foot pole:

Shouldda used the twenty footer

Permalink Reply by Frank Walker on February 26, 2012 at 10:12am

Beth wrote:

"I'm sorry, I am not permitted to comment in any way on behalf of thousands of employees, advisors, our brand and over 2,000,000 clients."

I, OTOH, am completely free to comment.  Let it be known that in my earlier post, above, I linked to only a tiny fraction of the negative internet material pertaining to Amerprise.  There are literally hundreds (thousands?) of such articles, readily available for the $0 price of a Google search.

Ameriprise, it would appear, is no prize.  When something appears too good to be true, it most likely is not true.

Ameriprise is Minnesota based.  MN is not exactly a hotbed of oil and gas drilling.  The ArkLaTex, however, is such a hotbed, and folks there have YEARS of experience in these matters.  If there were some hot, new, legal tax scheme to benefit oil and gas Lessors, it much more likely would have emerged from the ArkLaTex than from MN.  The Ameriprise folks in MN (or wherever) strike me as hustlers, out to make a buck at our expense.  Do not be drawn in by their swagger and feigned tax knowledge.

Straight up, this deal does not pass the smell test.  And it's not even a close call.

 

Permalink Reply by Dave on February 26, 2012 at 2:42pm

sounds like I should use my upfront money and become a double diamond distributor for amway.......

they have black tie events also...

Permalink Reply by grayhairedgrandpa on February 26, 2012 at 2:11pm

I feel that this thread has developed into a solicitation for financial services and have brought it to the attention of the admin.

Permalink Reply by Chartist on February 26, 2012 at 9:59am

Ameriprise, like all investment companies, wants to get your money invested with them so they can collect the 1% fees...Or more.....exchange traded funds are going to put mutual funds out of business....ETFs are squeezing the profit margins of all the major wall st. companies.

Permalink Reply by JOANN JAMES on February 26, 2012 at 10:06am

This is a site to share information so we all can learn from each other.  I hope we can continue to use it that way.

Permalink Reply by time will tell on February 26, 2012 at 10:22am

WOW Frank , that's quit a list of unhappy customers . Thanks for sharing this info you found .

0bcf9pzz1iuakPermalink Reply by 0bcf9pzz1iuak on February 27, 2012 at 1:42am

There are ways to substantially lower taxes on ogm bonus money and on going royalties.  Every landowner is in a different situation so it is not appropriate to discuss in a general discussion.

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