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Posted: 1/18/2006 12:46:49 PM EDT
[Last Edit: 1/18/2006 12:49:11 PM EDT by NSFJojo]
Should I just buy a big place so I don't feel ass fucked all the time?

They changed the tax rates at my work, up 12 dollars an hour.

rent is <$800
Link Posted: 1/18/2006 12:47:47 PM EDT
how much do you pay in rent, potty mouth?
Link Posted: 1/18/2006 12:49:20 PM EDT
get a better accountant. There are multi million dollar companies that pay nothing in taxes because they can write off wisely.
Link Posted: 1/18/2006 12:52:36 PM EDT

Originally Posted By gaspain:
get a better accountant. There are multi million dollar companies that pay nothing in taxes because they can write off wisely.



If you're a wage slave, there's not a whole lot you can write off, no matter how creative your accountant.
Link Posted: 1/18/2006 12:54:40 PM EDT
Why rent? if you buy a place there are some tax breaks.
Link Posted: 1/18/2006 12:58:20 PM EDT
Thanks I never relized that!!!!!
Link Posted: 1/18/2006 12:59:13 PM EDT

Originally Posted By JohnTheTexican:
If you're a wage slave, there's not a whole lot you can write off, no matter how creative your accountant.



negative. Totaly false.

I estimate 90% of accountants are wage slaves that are just in it to file your 1040ez for you.

If you cant find someone to do it right, do it yourself. Start reading tax laws, publications, and take a class or two on it. All of the above by the way are tax deductable.

ITEMIZE!
Link Posted: 1/18/2006 1:00:07 PM EDT
I do too. I love America .Just go out and make more money !
Link Posted: 1/18/2006 1:01:20 PM EDT
Don't like American taxes? Easy solution! Move!

Link Posted: 1/18/2006 1:03:40 PM EDT
Yeah, that's life once you start making the money. Sucks.
Link Posted: 1/18/2006 1:07:01 PM EDT
[Last Edit: 1/18/2006 1:08:00 PM EDT by quijanos]
Between my wife and myself.......we could pay on 2 more houses/mortgages (yes we own/buying) and do not rent.

We have no accountant. Do our taxes ourselves and do itemize.
But shit how much more can you do?
Gaspain? Any suggestions ? Do I have to document ever penny, keep receipts on every stick of gum?
Link Posted: 1/18/2006 1:08:58 PM EDT

Originally Posted By NSFJojo:
Should I just buy a big place so I don't feel ass fucked all the time?

They changed the tax rates at my work, up 12 dollars an hour.

rent is <$800



Did you add in all the hidden taxes that you also pay? It should come up to just a little over 50% of everything you make. More if you have some habits that "they" think you shouldn't have.
Link Posted: 1/18/2006 1:20:25 PM EDT
If you make a lot of money there are many dedcutions you cannot take. IRAs, Roth IRAs, student loan interest, tuition expenses, etc may all be deductions you cannot take, and if you do have a fair amount of deductions you will probably fall under the AMT. Itemized deductions may also be limited. IOW, they have far more ways to screw you than you do to get over on them. For most people, I think accountants for taxes are a big, big waste of time and money.

In any event, my house payment is way, way less than what I pay in taxes(withholding). Add in all the hidden taxes and damn....just damn.
Link Posted: 1/18/2006 1:22:42 PM EDT
[Last Edit: 1/18/2006 1:24:38 PM EDT by gaspain]

Originally Posted By quijanos:
Gaspain? Any suggestions ? Do I have to document ever penny, keep receipts on every stick of gum?



Use a program like Turbo Tax. Donate an old car, you can donate it and guarantee a cash advantage -- a tax deduction. Move to state that doesnt do state tax. Have a home office, you can deduct the PC you are typing on as long as its not used for personal stuff....also, deduct the Accountant should you choose to use him, decduct your turbo tax program under the "tax preparation" deduction....you get the picture google "tax tips"...a million ideas will flood your screen.
Link Posted: 1/18/2006 1:31:17 PM EDT
FWIW, I don't think buying an expensive home is a very good deal tax wise. Everyone says that kind of bullshit but if you only save a percentage of your mortgage interest and you still have property taxes which will be higher. Every year.

IOW, even if you are in a high tax bracket, say 28%, you will only save the 28% of that mortgage interest. So if you buy a 250,000 home vs a 150,000 home at 6.5% say, you will pay out :\

$16,500 in interest vs $9750 fist year--approx
so you pay out an addt'l $6,750 in interest and save an add'l $1890 in taxes. Still a net loss of almost $5,000.

There is no free lunch.
Link Posted: 1/18/2006 1:34:48 PM EDT

Originally Posted By gaspain:

Originally Posted By quijanos:
Gaspain? Any suggestions ? Do I have to document ever penny, keep receipts on every stick of gum?



Use a program like Turbo Tax. Donate an old car, you can donate it and guarantee a cash advantage -- a tax deduction. Move to state that doesnt do state tax. Have a home office, you can deduct the PC you are typing on as long as its not used for personal stuff....also, deduct the Accountant should you choose to use him, decduct your turbo tax program under the "tax preparation" deduction....you get the picture google "tax tips"...a million ideas will flood your screen.



Be careful about donating a car. The rule has changed; if the charity you give it to is just going to sell it then the donation amount is the gross proceeds from the sale.

Link Posted: 1/18/2006 1:36:19 PM EDT

Originally Posted By drjarhead:
FWIW, I don't think buying an expensive home is a very good deal tax wise. Everyone says that kind of bullshit but if you only save a percentage of your mortgage interest and you still have property taxes which will be higher. Every year.

IOW, even if you are in a high tax bracket, say 28%, you will only save the 28% of that mortgage interest. So if you buy a 250,000 home vs a 150,000 home at 6.5% say, you will pay out :\

$16,500 in interest vs $9750 fist year--approx
so you pay out an addt'l $6,750 in interest and save an add'l $1890 in taxes. Still a net loss of almost $5,000.

There is no free lunch.



Thanks for clearing it up.......we have essentially done exactly what you have proposed here.
We bought a house around 150K and think we've made the right choice. The per square foot dollar also goes alotttttttt further here in the Lone Star State.
Link Posted: 1/18/2006 1:36:28 PM EDT

Nigeria, which is arguably the most mismanaged economy in Africa


blah blah blah...


Nigeria is getting $165,000,000.00 of US Tax Dollars





Link Posted: 1/18/2006 1:37:36 PM EDT
Join the club! I could already have my dream ranch in Texas if it was not for taxes!
Link Posted: 1/18/2006 1:38:38 PM EDT
Too bad we can't do jack shit about it.


51% of the people can vote away over half of your life/income and there's nothing you can do about it.

Link Posted: 1/18/2006 1:39:44 PM EDT
Link Posted: 1/18/2006 1:40:22 PM EDT
Just be happy next time you see some damn pos welfare leech buying frozen pizzas and candy bars with a free government food card.

Link Posted: 1/18/2006 1:42:34 PM EDT

Originally Posted By gaspain:

Originally Posted By quijanos:
Gaspain? Any suggestions ? Do I have to document ever penny, keep receipts on every stick of gum?



Use a program like Turbo Tax. Donate an old car, you can donate it and guarantee a cash advantage -- a tax deduction. Move to state that doesnt do state tax. Have a home office, you can deduct the PC you are typing on as long as its not used for personal stuff....also, deduct the Accountant should you choose to use him, decduct your turbo tax program under the "tax preparation" deduction....you get the picture google "tax tips"...a million ideas will flood your screen.



I disagree. Again it depends on what your income is. For instance I have never been able to deduct the tax prep fees due to income level.

Home office?
Sure you can dedcut it if you actually have a home office used ONLY for official business and the computer you just bought can be used only for business also. How is that a net tax benefit? It isn't.

You just have to go through the form and see what you can take. For most, it is only the standard stuff, no big surprises. I have scoured the tax codes for ways to get over. I have used wseveral different accountants with no benefit. Hell they all made mistakes that created hassles for me and cost me money. Had to file amended returns one year after their screw up. There screw up was on my capital gainsand losses, and carry over, no less. What a PITA.

I have done my own taxes since I was 17, now 30 years.
If you are one of the working poor you can really make out, other than that forget it.

I would recommend an IRA and/or Roth IRA.
Itemize if you can and remember to deduct your state taxes, mortgage interest, and real estate taxes.
Child day care credit
Earned income credit
You can also deduct your state sales tax. They give you a set amount based on income or if you keep track you can use that as it will likely be higher. However, you can only take your state tax deduction OR sales tax deduction, so take whichever is greater if you itemize.

If you are not investing in an 401k you should be.
And if you have helath expenses such as glasses, out of pocket expenses you can set that up to be tax deductible if it is taken out before taxes.
Link Posted: 1/18/2006 1:44:30 PM EDT

Originally Posted By drjarhead:
FWIW, I don't think buying an expensive home is a very good deal tax wise. Everyone says that kind of bullshit but if you only save a percentage of your mortgage interest and you still have property taxes which will be higher. Every year.

IOW, even if you are in a high tax bracket, say 28%, you will only save the 28% of that mortgage interest. So if you buy a 250,000 home vs a 150,000 home at 6.5% say, you will pay out :\

$16,500 in interest vs $9750 fist year--approx
so you pay out an addt'l $6,750 in interest and save an add'l $1890 in taxes. Still a net loss of almost $5,000.

There is no free lunch.



Unless you have a justified need for a bigger home. Just try to avoid the mistakes of looking in areas that are high-rent for 'social' reasons (snobbery).
Link Posted: 1/18/2006 1:54:50 PM EDT

Originally Posted By Jame_Retief:

Originally Posted By drjarhead:
FWIW, I don't think buying an expensive home is a very good deal tax wise. Everyone says that kind of bullshit but if you only save a percentage of your mortgage interest and you still have property taxes which will be higher. Every year.

IOW, even if you are in a high tax bracket, say 28%, you will only save the 28% of that mortgage interest. So if you buy a 250,000 home vs a 150,000 home at 6.5% say, you will pay out :\

$16,500 in interest vs $9750 fist year--approx
so you pay out an addt'l $6,750 in interest and save an add'l $1890 in taxes. Still a net loss of almost $5,000.

There is no free lunch.



Unless you have a justified need for a bigger home. Just try to avoid the mistakes of looking in areas that are high-rent for 'social' reasons (snobbery).



Sure, if you need to move, move.
But don't expect any tax savings. You will only get a fraction, while paying higher mortgage payments, higher real estate taxes.

Also remember that the higher the value of your hopme the more limited a buying pool there is.
Further, the housing bubble seems tenuous at best, at this point. We'll see.

But the idea that buying shit or giving things away will get you free cash is You will only get a fraction of these in your taxes. And beware lest you fall into the AMT.

As for tax prep fees, any dimiwit can do short form or EZ. If you are unable to itemize or are better off taking the standard deduction then you cannot take it anyhow. If your income is high, you cannot take it.
And if you can, again, you only get a fraction of it back.

One thing you can do: You do have until April to take out an IRA. That is money in the bank and IS a net savings, but you give up the money for now.
Link Posted: 1/18/2006 5:03:09 PM EDT
1. you should move this to the business forum, you might get better answers.
2. There is darn little you can do as a wage slave
HOWEVER, there is a super fix it inside the tax code.
Start a small business.
You have to make money every 2 out of 5 years but the other years you can "lose" ridiculous sums of money. You have to do it above board, actually do a business and watch your books, but then almost everything becomes a business expense. Buy a new tractor for your home, total after tax expense. Buy a new one for the business and it's all a tax loss (i.e. pre-tax money)

oh, home office deductions suck, they get audited all the time, not worth the stress

Brian
Link Posted: 1/19/2006 1:07:30 PM EDT

Originally Posted By NSFJojo:
Should I just buy a big place so I don't feel ass fucked all the time?

They changed the tax rates at my work, up 12 dollars an hour.

rent is <$800



It's been like that for me since I got a real job 15 years ago. Just wait until you buy a house, I bet your Fed + State taxes plus property taxes will be more than your yearly Principal + interest on the house.

GunLvr
Link Posted: 1/20/2006 6:26:07 AM EDT

Originally Posted By GunLvrPHD:

Originally Posted By NSFJojo:
Should I just buy a big place so I don't feel ass fucked all the time?

They changed the tax rates at my work, up 12 dollars an hour.

rent is <$800



It's been like that for me since I got a real job 15 years ago. Just wait until you buy a house, I bet your Fed + State taxes plus property taxes will be more than your yearly Principal + interest on the house.

GunLvr



I live in Texas where we don't even have state income tax, but my federal income tax plus state property tax still comes to about seven times the principal plus interest on my house.
Link Posted: 1/20/2006 6:32:12 AM EDT
I don't wanna hear about you people's bullshit tax problems. Even with the deductions on my house (which I get taxed out the ass for too) I still pay more in income taxes than some of you make in a year. The government calls me "meal ticket".
Link Posted: 1/20/2006 6:42:54 AM EDT
Wow! Since so many of you hate my profession........I think I will let you pay higher taxes instead of trying to helping you.


Blame the govt and not the messenger!

Accountant
Link Posted: 1/20/2006 6:49:25 AM EDT
3 words, NSFJojo... Fair Tax Plan.


Repeal the 16th Amendment!
Link Posted: 1/20/2006 7:03:54 AM EDT

Originally Posted By motown_steve:
I don't wanna hear about you people's bullshit tax problems. Even with the deductions on my house (which I get taxed out the ass for too) I still pay more in income taxes than some of you make in a year. The government calls me "meal ticket".




Hell, I give out more in tips that you pay in taxes.
Link Posted: 1/20/2006 9:31:29 AM EDT
[Last Edit: 1/20/2006 9:31:44 AM EDT by motown_steve]

Originally Posted By JohnTheTexican:

Originally Posted By motown_steve:
I don't wanna hear about you people's bullshit tax problems. Even with the deductions on my house (which I get taxed out the ass for too) I still pay more in income taxes than some of you make in a year. The government calls me "meal ticket".




Hell, I give out more in tips that you pay in taxes.



Do you want to be friends? I'll hang out with you and you can buy me things!
Link Posted: 1/20/2006 9:46:00 AM EDT

Originally Posted By JohnTheTexican:

Originally Posted By motown_steve:
I don't wanna hear about you people's bullshit tax problems. Even with the deductions on my house (which I get taxed out the ass for too) I still pay more in income taxes than some of you make in a year. The government calls me "meal ticket".




Hell, I give out more in tips that you pay in taxes.



I think either one of you should buy my condo in Panama City that I have listed in the EE.

I am keeping the one in Hilton Head.

Link Posted: 1/20/2006 9:47:51 AM EDT
Jojo! Where are you? RENO?
Link Posted: 1/20/2006 10:08:01 AM EDT
Hey, someone has to pay for my military retirement....


... and my Dad's!


Link Posted: 1/20/2006 10:11:06 AM EDT

Originally Posted By motown_steve:

Originally Posted By JohnTheTexican:

Originally Posted By motown_steve:
I don't wanna hear about you people's bullshit tax problems. Even with the deductions on my house (which I get taxed out the ass for too) I still pay more in income taxes than some of you make in a year. The government calls me "meal ticket".




Hell, I give out more in tips that you pay in taxes.



Do you want to be friends? I'll hang out with you and you can buy me things!



I don't really. I just always wanted to say that.
Link Posted: 1/20/2006 10:12:25 AM EDT
Taxes and home ownership are not all they are cracked up to be. When you factor in repairs and maintenence as well as your personal time you are in the hole. The only benefit of owning a home is the increase in value over time. When my kids move out I am going to rent a nice apartment for the wife and I.
Link Posted: 1/20/2006 10:18:22 AM EDT
[Last Edit: 1/20/2006 10:22:08 AM EDT by fight4yourrights]
My Federal income tax is greater than my mortgage AND a car payment

Deductions are now meaningless, thanks to the Alternative Minimum Tax - I can't take but a fraction of my legit write-offs

Social InSecurity per week - $264.23

Medicare - $61.79




Originally Posted By motown_steve:

I don't wanna hear about you people's bullshit tax problems. Even with the deductions on my house (which I get taxed out the ass for too) I still pay more in income taxes than some of you make in a year. The government calls me "meal ticket".




Me too. Good thing we can carry the load, eh?
Link Posted: 1/20/2006 10:27:35 AM EDT
I think a house makes sense but only if it is your primary residence... Otherwise you can get about the same return by investing in an index fund, and with much more liquidity. Only drawback is you can't live in an index fund.
Link Posted: 1/20/2006 11:14:27 AM EDT
[Last Edit: 1/20/2006 11:29:52 AM EDT by Sauce]


Social InSecurity per week - $264.23

Medicare - $61.79



Everyone over $90k this year pays the same total to insecutiry so don't bitch too much about your weekly. It was a royal bitch to never be able to take the interest deduction on all those student loans I racked up though. I also pay more in fed taxes than to my mortgage/property taxes, thanks for pointing that out he
Sauce (just getting started meal ticket)
Link Posted: 1/20/2006 11:20:17 AM EDT

Originally Posted By JeromeAvers:
Taxes and home ownership are not all they are cracked up to be. When you factor in repairs and maintenence as well as your personal time you are in the hole. The only benefit of owning a home is the increase in value over time. When my kids move out I am going to rent a nice apartment for the wife and I.



stop buying shitbox houses.

Link Posted: 1/20/2006 11:28:35 AM EDT

Originally Posted By Sauce:


Social InSecurity per week - $264.23

Medicare - $61.79



Everyone over $90k pays the same total to insecutiry so don't bitch too much about your weekly. .




+1 - I always like the "raise" in pay after the 6.2% FICA is maxed out.

Link Posted: 1/20/2006 11:34:17 AM EDT

Originally Posted By gaspain:

Originally Posted By JohnTheTexican:
If you're a wage slave, there's not a whole lot you can write off, no matter how creative your accountant.



negative. Totaly false.

I estimate 90% of accountants are wage slaves that are just in it to file your 1040ez for you.

If you cant find someone to do it right, do it yourself. Start reading tax laws, publications, and take a class or two on it. All of the above by the way are tax deductable.

ITEMIZE!





Don't take advice from a high school kid.
Link Posted: 1/20/2006 12:07:02 PM EDT

Originally Posted By ar15_rifleman:

Originally Posted By gaspain:

Originally Posted By JohnTheTexican:
If you're a wage slave, there's not a whole lot you can write off, no matter how creative your accountant.



negative. Totaly false.

I estimate 90% of accountants are wage slaves that are just in it to file your 1040ez for you.

If you cant find someone to do it right, do it yourself. Start reading tax laws, publications, and take a class or two on it. All of the above by the way are tax deductable.

ITEMIZE!





Don't take advice from a high school kid.




Indeed. I tend to put more stock in the stuff I learned in the tax classes I took in law school, and failing that, the IRS pubs.
Link Posted: 1/20/2006 12:22:10 PM EDT
Just imagine what it'll be like in 10 years when all the debts racked up over the past 30 years collide with the fact that no foreign country will buy US dollars.

Guess where the Feds will get their money then...
Link Posted: 1/20/2006 12:23:54 PM EDT
But hey, you and I pay no state income tax.
Link Posted: 1/20/2006 12:28:55 PM EDT
Actually, Americans have about the smallest tax rate in the industrialized world.

For example, the tax rate for Germany starts about 50%, and goes down from there.. Thats just income tax, not the 16% sales tax, 100% gas tax, TV tax, etc.

Link Posted: 1/20/2006 12:30:25 PM EDT
When you add my Federal and State witholding together, it almost equals my house payment (after my last refinance for remodeling the house.) Add in FICA and the witholding exceeds my house payment.

So, what's your point?
Link Posted: 1/20/2006 12:30:29 PM EDT
I don't, but only because my rent is $2050 a month.....yes, that's for a 1900 square foot 4br/2.5 bath.

Welcome to the Bay Area.
Link Posted: 1/20/2006 12:37:15 PM EDT

Originally Posted By 1Andy2:
Just imagine what it'll be like in 10 years when all the debts racked up over the past 30 years collide with the fact that no foreign country will buy US dollars.

Guess where the Feds will get their money then...



Yeah, it is going to get ugly.

They will print more money though with resulting high inflation and a fiscal crisis.
The impression I get these days is that there are a lot of people who just run up debt actually planning for this. I think the collapse is virtually unavoidable at this point. The chinese got it figured out and planned for, not sure why we can't seem to get it.

_______________________________________________________

Onward with regards to the tax situation, the answer really is a major overhaul of the tax code or a Fair Tax. I oppose the latter as I believe it regressive. In any event, neither are going to happen.
The special interests and socialists won't stand for it. Not to mention how many gov't bureacrats would lose their worthless jobs. They'll just move all the IRS agents to ATF or some such thing. When they cahnged what the IRS was doing in the 90's plenty of them moved into medicare fraud. Real PITA and there are very few docs commiting fraud. Very few. But they cost everyone a shit load of money doing their audits. Long story. Anyhow imagine all the gov't assholes who aren't worth anything in the real world trying to justify their existence by screwing over the citizenry.

Just one more thing that ain't going to change thru the political system.
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