Taxes

Post by **TheCatt** » Mon Apr 05, 2010 8:39 am

I hate them.

But, since I started my own business last year, I figured I'd owe a boatload this April (We paid enough to be in safe harbor, but hadn't paid enough to cover what we thought our liabilities would be).

Well, turns out - we don't! We owe like 1k total ($1,800 to the feds, but state owes us $800).

ROCK ON.

Post by **GORDON** » Mon Apr 05, 2010 9:44 am

I'd love to know what percentage of income the average person pays in taxes. Not just income taxes, that is easy to figure... but also gas taxes, property taxes (on your own home/apartment/barber shop where you get your hair cut, etc), sales taxes on goods purchased, and the hidden taxes built in to every single thing you buy from the taxes on the corporation that made it.

Post by **TPRJones** » Mon Apr 05, 2010 10:23 am

Well, sales tax runs 9% around here, corporate taxes are typically in the 10% range, I pay about %10 myself, my apartment rent is - based on county data - roughly 8% property tax, and I pay a tax to drive my car.

Based on my (very) rough calculations, while earning around $40k annually my overall tax rate - of all types - is on the close order of 30%. ymmv.

unkbill · Post by **unkbill** » Mon Apr 05, 2010 11:55 am

TheCatt wrote:I hate them.

But, since I started my own business last year, I figured I'd owe a boatload this April (We paid enough to be in safe harbor, but hadn't paid enough to cover what we thought our liabilities would be).

Well, turns out - we don't! We owe like 1k total ($1,800 to the feds, but state owes us $800).

ROCK ON.

Cash in a business is king. Owning your own business with cash income is a license to steal. Of course we honest businessmen pay every dime unk sam says to.

Post by **TheCatt** » Mon Apr 05, 2010 1:37 pm

Well, my wife is a CPA, so we're pretty conservative on the tax stuff. A friend of mine started his own consulting firm as well, and... is much more adventurous with his tax deductions, kids on payroll, etc.

Mommy Dearest · Post by **Mommy Dearest** » Tue Apr 06, 2010 8:09 am

TheCatt wrote:Well, my wife is a CPA, so we're pretty conservative on the tax stuff. A friend of mine started his own consulting firm as well, and... is much more adventurous with his tax deductions, kids on payroll, etc.

Kids on the payroll is a very legitimate deduction. As long as they do some kind of work you don't have to pay social security on them until they are 18. Got my girls through high school with a paycheck instead of an allowance

Post by **TheCatt** » Tue Apr 06, 2010 8:14 am

Mommy Dearest wrote:
TheCatt wrote:Well, my wife is a CPA, so we're pretty conservative on the tax stuff. A friend of mine started his own consulting firm as well, and... is much more adventurous with his tax deductions, kids on payroll, etc.
Kids on the payroll is a very legitimate deduction. As long as they do some kind of work you don't have to pay social security on them until they are 18. Got my girls through high school with a paycheck instead of an allowance

He has his 10 year old as his bookkeeper. It's not legitimate.

Malcolm · Post by **Malcolm** » Tue Apr 06, 2010 11:23 am

TheCatt wrote:
Mommy Dearest wrote:
TheCatt wrote:Well, my wife is a CPA, so we're pretty conservative on the tax stuff. A friend of mine started his own consulting firm as well, and... is much more adventurous with his tax deductions, kids on payroll, etc.
Kids on the payroll is a very legitimate deduction. As long as they do some kind of work you don't have to pay social security on them until they are 18. Got my girls through high school with a paycheck instead of an allowance
He has his 10 year old as his bookkeeper. It's not legitimate.

Maybe he literally just stores his books.

Mommy Dearest · Post by **Mommy Dearest** » Wed Apr 07, 2010 8:38 am

I did my father's payroll at 12. Truly.

Post by **TPRJones** » Wed Apr 07, 2010 10:09 am

Mommy Dearest wrote:I did my father's payroll at 12. Truly.

Is it odd that I find this statement kind of sexy?

Malcolm · Post by **Malcolm** » Wed Apr 07, 2010 10:55 am

TPRJones wrote:
Mommy Dearest wrote:I did my father's payroll at 12. Truly.
Is it odd that I find this statement kind of sexy?

Yes.

Post by **Cakedaddy** » Wed Apr 07, 2010 11:44 am

Your 10 year old could wash your work vehicle. And if the government can pay $500 for a hammer, you should be able to pay him $500 for a car wash.

Mommy Dearest · Post by **Mommy Dearest** » Wed Apr 07, 2010 10:28 pm

TPRJones wrote:
Mommy Dearest wrote:I did my father's payroll at 12. Truly.
Is it odd that I find this statement kind of sexy?

It is not only odd it is damned wierd

Post by **TPRJones** » Wed Apr 07, 2010 11:21 pm

Hmmm, looking at that now I see a potential misconception. For the record, the age of 12 is irrelevant. It's more about mathematical proclivities.

Just sayin'.