Who do you support for U.S. Senate in Georgia in 2010?

[Bored]

Informed Opinion wrote:

<quoted text>
All that anger.
Relax, nothing is going to change as long as we keep voting for the same people owned by the same corporations.
This doesn't have to be complicated.
Pick a tax rate, any tax rate, and make everyone pay the same tax rate on all income from all sources:
wages, short-term capital gains, long-term capital gains, bonuses, options, grants, hedge fund gains, inheritances, gifts, barter. Everything.
No deductions, for anything, anytime, for anyone.
How hard is that ?
How can that be "unfair"
Let's call it the "RFT" - the Really Fair Tax.

Boring

[Oh really]

Bill in Dville wrote:

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The tax rate for your C corp is the same as the tax rate for my (former C corp), Home Depot, GE, etc.

Yeah, but what I can deduct and what you can, or could when you were working, is different.

The big difference is in the accounting and legal counsel, and tax breaks. You're under the mistaken impression that "the law" applies equally to everyone. It does - until the special (accounting) conditions, the details and tax breaks, kick in.

Remember, bean-counters rule the world!

Aside: GE doesn't pay corporate tax, HD does, a little.

http://www.nytimes.com/2011/03/25/business/ec...

[ME II]

Bill in Dville wrote:

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Actually, unless the rules have changed in the short time period since I retired I don't think they have), you have to issue a form 1099 for payments totaling over $600 made to a non-corporation, non-employee, unless the payment is for a tangible item (like a computer).
Also, the SS # or FEIN # are supposed to be verified, you're supposed to get a form W-9 from vendors.
In order for you to deduct something as a valid business expense paid to an individual, it must be "picked up" as income by that person.
All that being said, it's irrelevant to what I said about tax rates being the same for all. The above discussions about deductions are about items used in determining what TAXABLE income is and have no impact whatsoever as to what the tax rate is. Apples and oranges.
The tax rate for your C corp is the same as the tax rate for my (former C corp), Home Depot, GE, etc.

OK, enough with the double talk... Basically, the rich and big companies find a lot more ways to reduce their TAXABLE income than most of the regular Joes out there.

When I worked for a big company, I, as an individual worker, didn't have many ways to claim tax deductions. Now that I have my own business, I find that I can write off most anything. Business lunches?? Oh yeah, I can deduct that. But those every day Joes can't.

[Oh really]

Bill in Dville wrote:

<quoted text>
you have to issue a form 1099 for payments totaling over $600 made to a non-corporation, non-employee, unless the payment is for a tangible item (like a computer).
Also, the SS # or FEIN # are supposed to be verified, you're supposed to get a form W-9 from vendors.
In order for you to deduct something as a valid business expense paid to an individual, it must be "picked up" as income by that person.

Those are the rules you may (or may not) go by, but they're not mine, according to the IRS.

[Oh really]

ME II wrote:

<quoted text>
OK, enough with the double talk... Basically, the rich and big companies find a lot more ways to reduce their TAXABLE income than most of the regular Joes out there.
When I worked for a big company, I, as an individual worker, didn't have many ways to claim tax deductions. Now that I have my own business, I find that I can write off most anything. Business lunches?? Oh yeah, I can deduct that. But those every day Joes can't.

Tell me about it. I know of one contract that called for escrow accounts be funded for the person's children and grand children (a Ricky Fund)- and at the time of signing, he and his wife had neither, but it helped turn a net loss (NOT a misprint), which was needed (which became another deduction, a capital loss). It was all legal too.

[Synergy]

ME II wrote:

<quoted text>
OK, enough with the double talk... Basically, the rich and big companies find a lot more ways to reduce their TAXABLE income than most of the regular Joes out there.
When I worked for a big company, I, as an individual worker, didn't have many ways to claim tax deductions. Now that I have my own business, I find that I can write off most anything. Business lunches?? Oh yeah, I can deduct that. But those every day Joes can't.

So! Are you taking those deductions?

[ME II]

Synergy wrote:

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So! Are you taking those deductions?

Sure I am. But we all know it really, really isn't fair to take such deductions when the working man can't.

[jeb stuart]

Synergy wrote:

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So! Are you taking those deductions?

good point,syn.some of these posts seem to me to suggest that no one is breaking the law unless they get caught doing so.

[martini olive]

Well then, you're just as low as imprisoned inmates filing millions in false tax returns. And you boast about it? How disgusting?

[ME II]

martini olive wrote:

Well then, you're just as low as imprisoned inmates filing millions in false tax returns. And you boast about it? How disgusting?

You talking to me? All I said is that I take any LEGAL deduction I can, like business lunches, etc. But as I say, it isn't really fair to the normal, everyday working man, is it?

[Bill in Dville]

Oh really wrote:

<quoted text>
Yeah, but what I can deduct and what you can, or could when you were working, is different.
The big difference is in the accounting and legal counsel, and tax breaks. You're under the mistaken impression that "the law" applies equally to everyone. It does - until the special (accounting) conditions, the details and tax breaks, kick in.
Remember, bean-counters rule the world!
Aside: GE doesn't pay corporate tax, HD does, a little.
http://www.nytimes.com/2011/03/25/business/ec...

Yep. I am (or was) one of those bean counters, CFO for several companies. I've signed more tax returns than the number of days the POTUSA has been in office...

The GE tax situation has been addressed ad nauseum in here.

To say GE doesn't pay corporate tax (based upon one year, 2010 I believe) is misinformed about how the tax system works (NOLs, investment credits, etc.).

[martini olive]

Sure you do. You cry every night for the "every day working" family, dont you?

[Bill in Dville]

ME II wrote:

<quoted text>
OK, enough with the double talk... Basically, the rich and big companies find a lot more ways to reduce their TAXABLE income than most of the regular Joes out there.
When I worked for a big company, I, as an individual worker, didn't have many ways to claim tax deductions. Now that I have my own business, I find that I can write off most anything. Business lunches?? Oh yeah, I can deduct that. But those every day Joes can't.

Business meals are not 100% deductible, but I'm sure you were aware of that...

Oh yeah, you're still spending the money for those expenses, unless it's a 100% write off (or credit), the expenses outweigh the tax benefits. But I bet you knew that, too...

[Bill in Dville]

Bill said: "The tax rate for your C corp is the same as the tax rate for my (former C corp), Home Depot, GE, etc."

Oh really wrote:

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Yeah,...

'nuff said.

[Bill in Dville]

Oh really wrote:

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Those are the rules you may (or may not) go by, but they're not mine, according to the IRS.

Not that I really care, but you're wrong. You may be getting bad advice or whatever...

Do some research as to when it's appropriate to issue the form I mentioned.

Been audited lately? Or, at all?

[Bill in Dville]

ME II wrote:

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...
When I worked for a big company, I, as an individual worker, didn't have many ways to claim tax deductions. Now that I have my own business, I find that I can write off most anything. Business lunches?? Oh yeah, I can deduct that. But those every day Joes can't.

"When I worked for a big company, I, as an individual worker, didn't have many ways to claim tax deductions."

That's because a business can deduct legitimate operating expenses, individuals cannot. Driving to and from work is not a deduction. Lunch at work is not a deduction. Both are considered personal expenses.

If you're intimating that individuals should be able to deduct personal expenses, well that's a whole different can of worms.

[ME II]

Bill in Dville wrote:

<quoted text>
Business meals are not 100% deductible, but I'm sure you were aware of that...
Oh yeah, you're still spending the money for those expenses, unless it's a 100% write off (or credit), the expenses outweigh the tax benefits. But I bet you knew that, too...

Again, your arrogance is showing. Yes, I know business expenses are not 100% deductible. As for you saying that the "expenses outweigh the tax benefits" that really depends. If you were going to take a client out for lunch regardless of whether you're getting a tax deduction then ANY amount of deductions you can make will work to your benefit. If you think you're making money by having business lunches all the time, that's just plain dumb.

[Bill in Dville]

Oh really wrote:

<quoted text>
Tell me about it. I know of one contract that called for escrow accounts be funded for the person's children and grand children (a Ricky Fund)- and at the time of signing, he and his wife had neither, but it helped turn a net loss (NOT a misprint), which was needed (which became another deduction, a capital loss). It was all legal too.

Google (or otherwise research) "transfer pricing" if you want to see something interesting. I earned MANY frequent flyer miles to/from Europe, Bermuda and other places implementing transfer pricing projects.

[Bill in Dville]

ME II wrote:

<quoted text>
Sure I am. But we all know it really, really isn't fair to take such deductions when the working man can't.

You seem to be confusing what a business is allowed to do and what an individual is allowed to do...

To pay any more in taxes than one is legally required to do so, is poor business sense.

I forgot who said it, but it's close to what my first (of many) tax professors said:

"Tax evasion is illegal. Tax avoidance is prudent and sound business practice"...

[Synergy]

ME II wrote:

<quoted text>
Sure I am. But we all know it really, really isn't fair to take such deductions when the working man can't.

Then why are you taking them? Because YOU CAN. Same goes for all businesses. All of those who DON'T own their own business complain about it, but if they become a business OWNER, then all bets are off. So, it can be deduced that those who can't, complain. Those who can, do. It's all about choices. People complain that it's not fair; perhaps not. But the truth of the matter is.....it's not FAIR to complain simply because you AREN'T a business owner. Start a business or don't. Choice.