1/3 Of My Income To Taxes If I Don't Do Something!

[Ashan D]

Guys,

I have been thinking about taxes lately and have come to realize that they will hit me very hard if I do not proactively find a solution. I trade the markets with with few expenses to deduct and will be in the 28% bracket. California tax is another 9.3%. This means that if I don't do something about 1/3 of my account is going to taxes

My initial plan was to wait a couple years and start straight by going into a good sized property, either a 15+ unit apartment or even better, a small strip center or office building.

But taxes will severely diminish this plan. I need to do something different to save my money for now.

I have less than a year of trading history so getting a residential loan will be difficult.

I live in Long Beach, CA so buying a house around here, at this time, is not a good option. I can not move for 2 years due to school.

I am considering buying a SFR for tax shelter purposes.

The closest areas that have cash flowing SFRs are about 70-100 miles away and these areas are not ideal (Lancaster has a high homeownership rate due to high average income, but also is a high crime city for some reason. Moreno valley is an outskirt area and also somewhat lower class)

DO you guys think going this route is even worth it in this climate, or should I just take the hit and pay full taxes for now?