Page 2 of 3 FirstFirst 123 LastLast
Results 26 to 50 of 69

Thread: Happy tax day???

  1. #26
    Member No Pride's Avatar
    Join Date
    Nov 2012
    Location
    Chicago, IL, USA
    Posts
    137
    Quote Originally Posted by ronmac View Post
    But, there are also ways to save money in taxes if you have a good accountant and set up your business the right way. My wife and I formed an LLC and are the only two employees of our business. We have salaries that are low and, when we need money, we draw it from the business, thereby avoiding FICA taxes on that part (like 15%). This is a loophole in the code that the IRS is well aware of and currently have no plans to close it.

    We saved over five grand by filing as an LLC for 2012.

    That being said, if you're simply a fee-lancer, you might not have as many options. But there are still deductions to take, like mileage, equipment, Internet expenses, etc., to soften the blow.
    That's me... and I do take as many deductions as I can without waving a red flag, but I still got slammed. Though I work for a couple of companies (well, bands actually; I'm a musician), I'm considered to be an independant contracter and I have to pay self employment tax. It was fairly common for deductions to be taken out of my checks 10 years ago, but these days, nobody's doing that anymore. Between the federal and state, I owe $3,500, which is a big chunk for me. But seeing how badly some others on this thread were hit, I realize it could've been worse.

  2. #27
    ItalProgRules's Avatar
    Join Date
    Nov 2012
    Location
    Niagara County, NY
    Posts
    0
    I live very near - 5 minutes away - from an Indian Reservation (they hate the term "Native American" on the Rez,) and I buy every possible big-ticket item on the Rez.

    So I get my revenge all year long by buying tax-free. Gas especially. With the insane NYS taxes it's nice to get gas for the same price as peeps in other states. Same with cigs, for smokers.

    They sell all the big-ticket stuff, jewelry, gold, even a Donald Trump hat store. The biggest establishment takes up 2 entire airplane hangars (the big, jet kind) plus almost countless smaller buildings. Even phone cards. Just about everything you can think of.

    I love screwing Big Government.
    High Vibration Go On - R.I.P. Chris Squire

  3. #28
    Quote Originally Posted by ItalProgRules View Post
    I live very near - 5 minutes away - from an Indian Reservation (they hate the term "Native American" on the Rez,) and I buy every possible big-ticket item on the Rez.

    So I get my revenge all year long by buying tax-free. Gas especially. With the insane NYS taxes it's nice to get gas for the same price as peeps in other states. Same with cigs, for smokers.

    They sell all the big-ticket stuff, jewelry, gold, even a Donald Trump hat store. The biggest establishment takes up 2 entire airplane hangars (the big, jet kind) plus almost countless smaller buildings. Even phone cards. Just about everything you can think of.

    I love screwing Big Government.
    You're screwing the government, but not legally. You're cheating on your taxes every bit as much as the person who fakes charitable donations or claims thousands of dollars of medical bills, since you still are legally required to pay the sales taxes on most of those items, under the Use Tax portion of your NY State tax return. You still owe the sales tax, despite it not being collected at the point of sale.

    http://www.tax.ny.gov/pubs_and_bulls...ndividuals.htm

  4. #29
    Banned
    Join Date
    Mar 2013
    Location
    At your banquet
    Posts
    0
    Quote Originally Posted by Facelift View Post
    You're screwing the government, but not legally. You're cheating on your taxes every bit as much as the person who fakes charitable donations or claims thousands of dollars of medical bills, since you still are legally required to pay the sales taxes on most of those items, under the Use Tax portion of your NY State tax return.
    What if you're just leasing property to an organic farmer?

  5. #30
    Quote Originally Posted by Banquo View Post
    What if you're just leasing property to an organic farmer?
    Hey, I'm neither the taxman nor a paragon of virtue. But, I just wanted to help the dude understand that he didn't find a loophole, he just found an easier way to cheat. Maybe he wouldn't have wanted to make that information public if he knew, is all.

  6. #31
    Banned
    Join Date
    Mar 2013
    Location
    At your banquet
    Posts
    0
    Quote Originally Posted by Facelift View Post
    Hey, I'm neither the taxman nor a paragon of virtue. But, I just wanted to help the dude understand that he didn't find a loophole, he just found an easier way to cheat. Maybe he wouldn't have wanted to make that information public if he knew, is all.
    You misunderstood my post through no fault of your own. The "dude" is mad at Springsteen for using a legal loophole, which would seem contrary to his own personal mission of "screwing Big Government".

  7. #32
    Quote Originally Posted by Banquo View Post
    You misunderstood my post through no fault of your own. The "dude" is mad at Springsteen for using a legal loophole, which would seem contrary to his own personal mission of "screwing Big Government".
    Oh, OK. Sorry I misunderstood.

  8. #33
    Member
    Join Date
    Nov 2012
    Location
    near Chicago
    Posts
    0
    When the beatles song was written in the 60's, wasn't the top tax rate something like 90% ? Back in the day I recall reading of successful musicians and actors moving out of England due to its oppressive tax rates.

  9. #34
    Quote Originally Posted by ronmac View Post
    I used to estimate years ago and never bothered with paying the same amount each quarter. I simply paid what I owed, from the previous quarter. I never had any problems doing it that way. Granted, that was many years ago, so they may be stricter today, but how can they complain about you paying what you owe? My accountant didn't think it was anything to be concerned with.
    I think this is probably what we'll do from here on out -- just pay what we owe each quarter rather than focusing on paying the same amount each quarter and trying to play catch-up if we get behind. I've worked for someone else my entire working life up until the past two and a half years, so I'm still figuring things out as I go. I'm just glad I'm married to an accountant -- I'd be totally lost trying to deal with all this on my own. I'm a word guy, not a number guy.

    Quote Originally Posted by Facelift View Post
    ? Having a business is where you can really do a lot of tax avoidance. That's why business filings are much more likely to be audited. There's plenty of loopholes for you to "cheat" legally, and plenty more that won't get you caught. If you think you're really burdened, then you might be doing something "wrong."
    Oh, believe me, we've been very liberal with our deductions and exemptions! My wife's diligence has saved us several thousand dollars, actually. It's mostly just that I'm making more -- far more -- as a contractor than I ever did as someone else's employee, so my tax bill is higher -- and that, combined with the self-employment tax, is just really gutting.

  10. #35
    Studmuffin Scott Bails's Avatar
    Join Date
    Nov 2012
    Location
    Near Philly, PA
    Posts
    6,583
    Quote Originally Posted by Banquo View Post
    You misunderstood my post through no fault of your own. The "dude" is mad at Springsteen for using a legal loophole, which would seem contrary to his own personal mission of "screwing Big Government".
    I believe the term you're looking for is "hypocrisy."
    Music isn't about chops, or even about talent - it's about sound and the way that sound communicates to people. Mike Keneally

  11. #36
    cunning linguist 3LockBox's Avatar
    Join Date
    Nov 2012
    Location
    hiding out in treetops, shouting out rude names
    Posts
    3,657
    For a lot of people, a refund is all the saving they do throughout the year.
    Compact Disk brought high fidelity to the masses and audiophiles will never forgive it for that

  12. #37
    Member Casey's Avatar
    Join Date
    Nov 2012
    Location
    Newburyport, MA
    Posts
    334
    ^ And once received, I'm sure it's spent pretty quickly.

  13. #38
    Studmuffin Scott Bails's Avatar
    Join Date
    Nov 2012
    Location
    Near Philly, PA
    Posts
    6,583
    Quote Originally Posted by Casey View Post
    ^ And once received, I'm sure it's spent pretty quickly.
    Which is why tax breaks for the middle and lower classes are good for the economy - the money goes right back into the economy, not in off-shore accounts.
    Music isn't about chops, or even about talent - it's about sound and the way that sound communicates to people. Mike Keneally

  14. #39
    Geriatric Anomaly progeezer's Avatar
    Join Date
    Nov 2012
    Location
    Madison, WI
    Posts
    11,318
    Quote Originally Posted by Scott Bails View Post
    Which is why tax breaks for the middle and lower classes are good for the economy - the money goes right back into the economy, not in off-shore accounts.
    Amen!
    "My choice early in life was either to be a piano player in a whorehouse or a politician, and to tell the truth, there's hardly any difference"

    President Harry S. Truman

  15. #40
    Member Casey's Avatar
    Join Date
    Nov 2012
    Location
    Newburyport, MA
    Posts
    334
    Here's an idea: save it or invest it.

    I'm four-square middle class. I don't see money as an excuse to live beyond one's means or as an evil thing. I would recommend putting some away for your children's education, for when you retire, or should you or your spouse become disabled to an extent that requires extensive healthcare at home or in a nursing facility. Money going right back into the economy in the form of an even bigger TV set is irresponsible. And using the phrase "off shore accounts" is a cheap shot at people who either made smart decisions or were born into wealth. I'm sure we'd all be surprised if we found out who was squirreling money away from the federal tax coffers.

  16. #41
    Studmuffin Scott Bails's Avatar
    Join Date
    Nov 2012
    Location
    Near Philly, PA
    Posts
    6,583
    Quote Originally Posted by Casey View Post
    Money going right back into the economy in the form of an even bigger TV set is irresponsible.
    Well, that would depend on one's economic situation, wouldn't it?

    Quote Originally Posted by Casey View Post
    And using the phrase "off shore accounts" is a cheap shot at people who either made smart decisions or were born into wealth.
    That's exactly what it was meant to be. Directed at folks like Mitt Romney - you know, the guys who were born on third base and act like they've hit a triple.
    Music isn't about chops, or even about talent - it's about sound and the way that sound communicates to people. Mike Keneally

  17. #42
    Moderator Duncan Glenday's Avatar
    Join Date
    Apr 2003
    Location
    Frederick, MD
    Posts
    2,092




    3
    Regards,

    Duncan

  18. #43
    Studmuffin Scott Bails's Avatar
    Join Date
    Nov 2012
    Location
    Near Philly, PA
    Posts
    6,583
    Sorry - the topic is inherently political.

    Won't happen again, guv'nor.
    Music isn't about chops, or even about talent - it's about sound and the way that sound communicates to people. Mike Keneally

  19. #44
    Moderator Duncan Glenday's Avatar
    Join Date
    Apr 2003
    Location
    Frederick, MD
    Posts
    2,092
    Regards,

    Duncan

  20. #45
    Highly Evolved Orangutan JKL2000's Avatar
    Join Date
    Mar 2003
    Location
    Westchester, NY
    Posts
    16,529
    What are these "taxes" of which you speak?

  21. #46
    Saving is great. But, when people ONLY save money, it goes nowhere. When they spend it, it gets multiplied into economic activity. This demand leads to jobs that leads to more spending, more demand, more jobs and on and on. Economies trickle up, not down. Without money in the pockets of those who spend it, we don't have economic activity.

    I recall back in the '70s when the economy was tanking and Jimmy Carter advised people to save their money. Economists had coronaries hearing that. You need to spend. When the people can't spend, the government needs to step in and spend.

  22. #47
    Member Vic2012's Avatar
    Join Date
    Nov 2012
    Location
    La Florida
    Posts
    7,554
    I got a good refund this year. Last year my refund must've gotten lost in the mail because I never got the check. Yes I shoulda had it direct deposit. Lesson learned. But good news. The tax dude found my refund for 2011 and with 2012's refund I got about 2k.

  23. #48
    Member Casey's Avatar
    Join Date
    Nov 2012
    Location
    Newburyport, MA
    Posts
    334
    "Saved money" goes everywhere: into loans for home improvements, new housing construction, new business start ups, college loans. With all of these expenditures people will be the recipients of your "saved (i.e.: invested) money." Then these recipients will have money in their pockets to either spend or re-invest. Re-visit the "bank run" scene in "It's a Wonderful Life."

    My beef with spending your "refund" is that too many people who are drowning in debt take this fleeting gift & buy something new rather than try to dissipate some of that debt.

    Now, if you bury your money in the backyard that's another story.

    I will do my best to remain apolitical. There's plenty of assholiness demonstrated in our political system for me to want to contribute my share.

  24. #49
    Studmuffin Scott Bails's Avatar
    Join Date
    Nov 2012
    Location
    Near Philly, PA
    Posts
    6,583
    Quote Originally Posted by Casey View Post
    "Saved money" goes everywhere: into loans for home improvements, new housing construction, new business start ups, college loans. With all of these expenditures people will be the recipients of your "saved (i.e.: invested) money." Then these recipients will have money in their pockets to either spend or re-invest. Re-visit the "bank run" scene in "It's a Wonderful Life."

    My beef with spending your "refund" is that too many people who are drowning in debt take this fleeting gift & buy something new rather than try to dissipate some of that debt.
    But you're talking about two different things here.

    Someone with crazy debt shouldn't be saving - they should be paying off their debt. That would help their situation and would take debt out of the economy - it would remove risk from their creditor. All good.

    Spending is better than saving from a national economy standpoint, as long as people aren't spending beyond their means. This doesn't mean that all debt is bad, but debt that can't be paid off, folks that are over-leveraged, is bad.
    Music isn't about chops, or even about talent - it's about sound and the way that sound communicates to people. Mike Keneally

  25. #50
    Quote Originally Posted by Casey View Post
    "Saved money" goes everywhere: into loans for home improvements, new housing construction, new business start ups, college loans. With all of these expenditures people will be the recipients of your "saved (i.e.: invested) money." Then these recipients will have money in their pockets to either spend or re-invest. Re-visit the "bank run" scene in "It's a Wonderful Life."
    Have you been following the news for the last few years? The banks have been sitting on TRILLIONS and not loaning them to small businesses.

    Now, I do agree with your comment about people spending irresponsibly while in debt. But that's not what we were talking about. We were discussing the economic benefits of money being hoarded (my word), which has little to no broad economic benefit, versus being spent (responsibly, of course), which is what fuels the economy.

    Debt -- responsible debt -- is also a huge part of the machine we call our economy, as well. I know nobody who hasn't incurred some debt (mortgages, car loans, student loans, etc.). Most businesses cannot run without taking on debt.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •