taxes

[Muse600]

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out here in CA where there's a hefty state income tax, I bring home 53-58% of my paycheck (with 8% going to 401k)...I'm looking to keep more in my pocket for this year, and future years

anybody else know the best way to optimize my taxable income so I'm not paying as much?

 

[wpierce118]

So tax evasion is cool now because your friends are doing it? Okay. /sarcasm

What makes you think it's fine for you to cheat the system and pay less than everyone else?

 

[Muse600]

I'm not interested in making this an ethics thread...let's stay on topic and focus on how to achieve affective tax deductions.

 

[BMBiology]

If you want to pay less tax, you need capital. In the mean time, you can:

(1) Max out your 401k to 17 k a year
(2) Buy a house. For example, $550,000 at 3.5% interest rate will save you 4 k a year for the first year if you put 20% down. However, you would need to pay >5.5 k in property tax per year in CA
(3) Pay back your student loan ASAP. This is guaranteed return.

 

[wpierce118]

Do you really think that being able to start a sham real estate business for deductions is a feature of the system?

Other people aren't finding things that aren't really business expenses to mark as such. They are paying their fair share, and to pay less than yours is unfair to them.

Edit: There are of course legal ways to pay less taxes, and you shouldn't have to pay more than your fair share. Counting your cell phone use as a business expense when it isn't, is not only unfair, it's illegal

 

[Its Z]

I would gladly pay more taxes than everyone combined.

If I'm paying a cool 7 figure taxes every year, I'd be doing pretty well.

 

[Muse600]

401k - check...I also believe roth contributions are tax deductible, and I make a 10% tithing to church

property - I don't have enough of a down payment, or closing costs to hop into anything just yet...

but how does paying off your student loans help your taxable income? yeah, it keeps more in your pocket by not having to make a monthly payment, and you avoid all the interest you would've paid.

 

[GodsSon2011]

lol this guy bragging about doing tax loopholes

 

[21PharmD]

along the same lines, is there a way for floater pharmacists to write fuel costs off their taxes? Aside from rent my biggest expense at the moment is fuel costs. Does anyone have any experience in terms of being able to write off fuel costs on taxes? If so what would records would i need to keep in order to do so?

 

[BenJammin]

If you want to pay less tax, you need capital. In the mean time, you can:

(1) Max out your 401k to 17 k a year
(2) Buy a house. For example, $550,000 at 3.5% interest rate will save you 4 k a year for the first year if you put 20% down. However, you would need to pay >5.5 k in property tax per year in CA
(3) Pay back your student loan ASAP. This is guaranteed return.

Easily the worst advice you could give to someone on this forum. Please do not buy a house just so you can play less in taxes. Might as well smash your face in with a hammer...probably more productive in the long run.

 

[Doctor M]

You are gonna pay taxes up the ass. Evening owning a business nowadays, the obama policies are gonna cut what we can deduct. You are fuked.

 

[All4MyDaughter]

You are gonna pay taxes up the ass. Evening owning a business nowadays, the obama policies are gonna cut what we can deduct. You are fuked.

You've been drinking too much Rmoney Koolaid. Most (if not all) small business owners will do better with "obama policies" than the alternative.

 

[Doctor M]

You've been drinking too much Rmoney Koolaid. Most (if not all) small business owners will do better with "obama policies" than the alternative.

So you think 🙂 So far here is what i have read; maximum amount expenses allowed for 2013 = $25,000, down from $139,000. Equipment and machinery allowances are being reduced from $560,000 to $200,000. And since we are taxed as an LLC, or marginal taxes are increasing from 35% to $39.6. I think you have a serious case of obamasitis

If Congress does not act, i will be paying more. As for the tax relief, it seems positive for start ups. I am not a start up.

 

[Doctor M]

http://www.treasury.gov/resource-center/tax-policy/Documents/General-Explanations-FY2013.pdf

 

[All4MyDaughter]

So you think 🙂 So far here is what i have read; maximum amount expenses allowed for 2013 = $25,000, down from $139,000. Equipment and machinery allowances are being reduced from $560,000 to $200,000. And since we are taxed as an LLC, or marginal taxes are increasing from 35% to $39.6. I think you have a serious case of obamasitis

If Congress does not act, i will be paying more. As for the tax relief, it seems positive for start ups. I am not a start up.

Are you talking about whether Congress will allow the Bush tax cuts to expire or not? You do realize that that's up to Congress, and not dependent upon whether we have President Obama or (gag) President Romney?

Also, there is a lot of confusion about what the tax issues really are. Check this out for starters: http://www.slate.com/articles/busin...are_not_affected_by_obama_tax_proposals_.html

 

[Doctor M]

Are you talking about whether Congress will allow the Bush tax cuts to expire or not? You do realize that that's up to Congress, and not dependent upon whether we have President Obama or (gag) President Romney?

Also, there is a lot of confusion about what the tax issues really are. Check this out for starters: http://www.slate.com/articles/busin...are_not_affected_by_obama_tax_proposals_.html

The Rich must pay!!!!! The wealthy must pay. Obama wil tax us more no matter. Look, i have discussed this Romney vs Obama (Barf) crap for soooooo long and am so tired. Yes, doesnt matter who is in office, either one would have increased taxes. Besides, The President does not really run the country. So doesnt really matter who is it was.

 

[All4MyDaughter]

The Rich must pay!!!!! The wealthy must pay. Obama wil tax us more no matter. Look, i have discussed this Romney vs Obama (Barf) crap for soooooo long and am so tired. Yes, doesnt matter who is in office, either one would have increased taxes. Besides, The President does not really run the country. So doesnt really matter who is it was.

Exactly.

And the document you posted was really long. I skimmed it, but couldn't find the section on "Screwing over small business owners." Do you have a page number? 😀

 

[Doctor M]

Exactly.

And the document you posted was really long. I skimmed it, but couldn't find the section on "Screwing over small business owners." Do you have a page number? 😀

Pages 1-ifinity 🙂 Let me put it to you like this. That document is for small businesses, which they must define as 50 or more employees. We are a small small small business. A middle class business you could say. My taxes will not benefit that document. All i see is my taxes increasing and the few benefits we did have will be almost gone.

 

[Doctor M]

I have never really complained about paying taxes. I love this country we live in. But after awhile, as your paycheck gets smaller and smaller, you start to say, WTF. But hey, it is what it is. I voted for the Candidate whom i thought would benefit us as a whole. Not as an individual agenda. Hispanics voted for him for immigration reform. Women voted for Women issues etc etc etc. I voted for where i thought he could take us. But hey, 52% of the nation disagreed. SO be it. To say either of these candidates is for small business and they care what we think is BS. They have their agendas and I hope to GOD Obama succeeds even though i did not vote for him. I want him to do well, i am behind what he does, cause i have NO choice. Having said that, everyone has their opinions and the posting of biased articles is just asinine. And A4MD, not saying anything about you at all!!! just venting a little 🙂

 

[Doctor M]

Are you talking about whether Congress will allow the Bush tax cuts to expire or not? You do realize that that's up to Congress, and not dependent upon whether we have President Obama or (gag) President Romney?

Also, there is a lot of confusion about what the tax issues really are. Check this out for starters: http://www.slate.com/articles/busin...are_not_affected_by_obama_tax_proposals_.html

Read the article. Simple yet quaint . The author implies that business owners do not know what is being taxed. i find it absurd that business owners do not know how the tax works on their own company. Revenue versus Gross profit, Gross profit versus Net profit. Yes, I know i will be tax on a marginal basis. I know my salary is not all taxed at 35%. We are an LLC, and we are taxed as individual tax payers. we make a high standard salary each and the profits AFTER our deductions of payroll, expenses are taxed. We are high earners which will push us well beyond the 200k for single filers. Any way you look at it, if President Obama is set to let the tax cuts expire, my taxes are going up. I do realize that congress and the President will decide this matter for us. The average amount that my tax bracket fellow payers will pay is i believe $15000 more tax per year. I hope they put it to good use.

 

[All4MyDaughter]

Read the article. Simple yet quaint . The author implies that business owners do not know what is being taxed. i find it absurd that business owners do not know how the tax works on their own company. Revenue versus Gross profit, Gross profit versus Net profit. Yes, I know i will be tax on a marginal basis. I know my salary is not all taxed at 35%. We are an LLC, and we are taxed as individual tax payers. we make a high standard salary each and the profits AFTER our deductions of payroll, expenses are taxed. We are high earners which will push us well beyond the 200k for single filers. Any way you look at it, if President Obama is set to let the tax cuts expire, my taxes are going up. I do realize that congress and the President will decide this matter for us. The average amount that my tax bracket fellow payers will pay is i believe $15000 more tax per year. I hope they put it to good use.

Right, but your "salary" from the LLC (my accountant calls it "taking a draw") and the money left over is all taxed at individual taxpayer rates. Including payroll taxes. My accountant says it is often more favorable to reorganize as S-corp because you can truly pay yourself a set salary (has to be reasonable by industry standards) and only that is taxed at individual rates and subject to payroll taxes. The rest that is left over after salaries and expenses is taxed at the corporate tax rate, and is excluded from payroll taxes. Accountant swears that doing it that way is often more favorable. Have an appointment in a few weeks to look at hard numbers for our business.

 

[Doctor M]

Right, but your "salary" from the LLC (my accountant calls it "taking a draw") and the money left over is all taxed at individual taxpayer rates. Including payroll taxes. My accountant says it is often more favorable to reorganize as S-corp because you can truly pay yourself a set salary (has to be reasonable by industry standards) and only that is taxed at individual rates and subject to payroll taxes. The rest that is left over after salaries and expenses is taxed at the corporate tax rate, and is excluded from payroll taxes. Accountant swears that doing it that way is often more favorable. Have an appointment in a few weeks to look at hard numbers for our business.

Let me know what they say! Fill me in! Always good discussing wit you!

 

[Momus]

Yes, business owner is ****ed + people who make significantly more than >$250k are ****ed.

Like I said I am a democrat until I am a republican. Sadly, there are more people in US who can benefit from Obama's policy than Romney's, that's why he is popular. In the end, it boils down to It's every man for himself.

 

[rxlea]

Yes, business owner is ****ed + people who make significantly more than >$250k are ****ed.

Like I said I am a democrat until I am a republican. Sadly, there are more people in US who can benefit from Obama's policy than Romney's, that's why he is popular. In the end, it boils down to It's every man for himself.

Why is it sad that the majority of people benefit? Isn't that the goal?

 

[Momus]

Why is it sad that the majority of people benefit? Isn't that the goal?

It's an irony. People have to pick Obama because they are poor - middle class and don't make enough to begin with, thus they can't afford to pick Romney.

 

[rxlea]

It's an irony. People have to pick Obama because they are poor - middle class and don't make enough to begin with, thus they can't afford to pick Romney.

I guess if everyone valued money the same and that's what their sole motivation for voting one way or the other that would make sense. But there are other issues like foreign policy and social issues that people consider. It is very sad that people are poor or working class but it doesn't explain the millions of upper middle class and upper class that pick Obama. Money isn't everything. I don't believe that everyone has this "every man for himself" mentality. I certainly don't and that won't change regardless of my income.

The people that picked Romney because it may have spared them some tax dollars are not that different from people that picked Obama because they think it'll give them an entitlement. In either case, it's about what the government gives or takes away from them. I guess some people do think about the individual over the collective. It's not necessarily a bad thing but it's important to remember that not everyone is on equal footing. The idea is to give everyone a fair chance. I don't believe the Republican Party (from what I've seen) holds that value.

 

[BenJammin]

It's an irony. People have to pick Obama because they are poor - middle class and don't make enough to begin with, thus they can't afford to pick Romney.

The real irony is that in the small Texas town I grew up, only the poor to middle class voters were Republicans.

 

[Doctor M]

I guess if everyone valued money the same and that's what their sole motivation for voting one way or the other that would make sense. But there are other issues like foreign policy and social issues that people consider. It is very sad that people are poor or working class but it doesn't explain the millions of upper middle class and upper class that pick Obama. Money isn't everything. I don't believe that everyone has this "every man for himself" mentality. I certainly don't and that won't change regardless of my income.

The people that picked Romney because it may have spared them some tax dollars are not that different from people that picked Obama because they think it'll give them an entitlement. In either case, it's about what the government gives or takes away from them. I guess some people do think about the individual over the collective. It's not necessarily a bad thing but it's important to remember that not everyone is on equal footing. The idea is to give everyone a fair chance. I don't believe the Republican Party (from what I've seen) holds that value.

Foreign policy and social policy all require money. You are right, people value money differently. People work differently, some more than others. Some do not work at all, either by choice or by some disability. I value money and am proud what i have earned. I do not mind helping someone in need for a specific amount of time. We help our own. I pay my share, and for the amount of time i work, i def pay my share. It is not about black, hispanic, woman, blah blah blah. It is about everyone having a chance and having said that, those who do not wish to participate fairly should not be able to benefit from societies hard work whether it be any sort of government aide. Those who cannot fend for themselves should be helped. The rest who are able to work who do not when work is available, well, let them fend for themselves. Our economy is dry, yes, but please, there are jobs out there. Our society is obsessed with taxes, economy and what is in it for ME. That is the American way, and that is the status quo.

 

[Aznfarmerboi]

I picked Obama.

 

[rxlea]

Foreign policy and social policy all require money. You are right, people value money differently. People work differently, some more than others. Some do not work at all, either by choice or by some disability. I value money and am proud what i have earned. I do not mind helping someone in need for a specific amount of time. We help our own. I pay my share, and for the amount of time i work, i def pay my share. It is not about black, hispanic, woman, blah blah blah. It is about everyone having a chance and having said that, those who do not wish to participate fairly should not be able to benefit from societies hard work whether it be any sort of government aide. Those who cannot fend for themselves should be helped. The rest who are able to work who do not when work is available, well, let them fend for themselves. Our economy is dry, yes, but please, there are jobs out there. Our society is obsessed with taxes, economy and what is in it for ME. That is the American way, and that is the status quo.

This is the talking point I hear over and over. It's what people say when they live in a bubble. It's much more complicated than that.

Money and being obsessed with what is in it for whomever doesn't have to be theAmerican way. Other countries make fun of that mentality.

 

[Doctor M]

This is the talking point I hear over and over. It's what people say when they live in a bubble. It's much more complicated than that.

Money and being obsessed with what is in it for whomever doesn't have to be theAmerican way. Other countries make fun of that mentality.

Ok, i must be the bubble boy. I do not see it that complicated. We obviously have huge differences in opinion and discussing it would just be waste of time. Back it up with facts and i will discuss, but to say i live in a bubble is, well, dumb.

 

[rxlea]

Ok, i must be the bubble boy. I do not see it that complicated. We obviously have huge differences in opinion and discussing it would just be waste of time. Back it up with facts and i will discuss, but to say i live in a bubble is, well, dumb.

Yep we do. I'm not dumb though. And yes, I don't have time to discuss right now. Maybe later 😀 I have a kinetics exam to study for.

 

[Doctor M]

Yep we do. I'm not dumb though. And yes, I don't have time to discuss right now. Maybe later 😀 I have a kinetics exam to study for.

Your argument was dumb, NOT you 😀 study hard!

 

[rxlea]

Your argument was dumb, NOT you 😀 study hard!

😉 but really, we should discuss. With facts. You're right on that. I'd be happy to....after my test 😀

 

[npage148]

This is like in Office Space when they looked up "money laundering" in the dictionary.

My advice: don't be a scumbag and pay your fair share. Romney is a scumbag and so is everyone that uses creative accounting to skip out on their taxes.

If you want to pay less taxes get a different job, work less or move to a different country.

 

[Doctor M]

This is like in Office Space when they looked up "money laundering" in the dictionary.

My advice: don't be a scumbag and pay your fair share. Romney is a scumbag and so is everyone that uses creative accounting to skip out on their taxes.

If you want to pay less taxes get a different job, work less or move to a different country.

I never said anything about paying less taxes. Like i said, fair is fair. My advice: Dont be a scum bag and steal from paul to pay peter. If you are able to work, get a job and make some money. Need a little help, i would be happy to assist. Want your bills paid for, go to Canada. Your argument can go both ways. Again, we have differences in opinion. The fact that we spend THE Least ON EDUCATION and more on social welfare is scary. Talk about balancing the budget. Anyway, this argument is dead as i can see. We could argue and go back and forth all day, and the fact is is that we have different views. And that is ok.