Advice on business startup to defer taxes

**edlmontero** · 01-02-2011 08:26 PM

I'd appreciate any legal ideas from forum members.

My situation, in short, is this; I'll be leaving my current job in June of next year and will be given a check for deferred compensation within 90 days after that. It should be for about $300k and my tax liability from it will be about $100k, round numbers. What I would like to do is invest these proceeds in a business that will result in a paper loss in 2011 that will offset these proceeds, or more, if possible, to reduce my AGI. Then sell (whatever I bought) in 2012 or beyond, thereby reducing my tax liability as I'll be in a much lower tax bracket.

I don't need to make a lot of profit, or actually any at all. My desired outcome is to reduce (or eliminate) my tax liability.

Whatever the business/investment is should be relatively safe. Don't mind a bit of risk.

I don't want to do anything illegal or even doubtful.

Some thoughts I've had for example (which I've later discarded) is to buy some wholesale diamonds, have them in inventory at the end of 2011 and then sell then during 2012 or beyond.

Anyway, any ideas would be appreciated.

Ed Montero