Taxes and stuff - Care to share? - Page 2
Close
Login to Your Account
Page 2 of 5 FirstFirst 1234 ... LastLast
Results 21 to 40 of 83
  1. #21
    Join Date
    Jan 2003
    Location
    Canada
    Posts
    11,234
    Post Thanks / Like
    Likes (Given)
    5321
    Likes (Received)
    3369

    Default

    Doesn't Washington have no income tax? so wouldn't it all be mostly Federal?

    In Canada if you gross $100K personal, you end up paying around 30-36%(say $35k) between provincial and federal(including CPP) depending on province, list of other taxes extra.
    So what's the % you're actually sending to taxes?

  2. #22
    Join Date
    Mar 2005
    Location
    Kansas
    Posts
    7,465
    Post Thanks / Like
    Likes (Given)
    429
    Likes (Received)
    3425

    Default

    Once you become a business owner, the success of your business depends on your ability as a business owner much more than your abilities as a machinist. Knowing where the money goes, and why, is incumbent in your duties. Ask questions of both your bookkeeper and your accountant. If you don't get answers you can understand, find new help. You wouldn't employ a machinist that tried to baffle you or couldn't explain what he was doing, would you?

    A basic understanding of business taxation isn't difficult, but it does require a different mindset. Don't get hung up on whats fair and whats not, there is nothing you can do about it. Its just how the game is played. You just have to figure out how you can minimize the expense.

    Ries had good ideas about how to pay yourself an owners draw without paying social security taxes on it.

  3. Likes 4 FN 27, Zahnrad Kopf liked this post
  4. #23
    Join Date
    Jan 2003
    Location
    Canada
    Posts
    11,234
    Post Thanks / Like
    Likes (Given)
    5321
    Likes (Received)
    3369

    Default

    According to a few online US tax calculator on 70K personal gross, about 20% of it would go to income taxes(fed) and FICA included.
    I'd expect less with business deductions and such.
    From the numbers we saw so far it sounds like you're paying closer to 50% so that can't be right.

    Washington Income Tax Calculator | SmartAsset.com


    I find it funny that 6-7% is considered a really high sales tax down there... its 15% here and we're lucky it isn't more yet(but that's coming).

  5. #24
    Join Date
    Jul 2012
    Country
    UNITED STATES
    State/Province
    Washington
    Posts
    2,858
    Post Thanks / Like
    Likes (Given)
    1105
    Likes (Received)
    1141

    Default

    Quote Originally Posted by SND View Post
    According to a few online US tax calculator on 70K personal gross, about 20% of it would go to income taxes(fed) and FICA included.
    I'd expect less with business deductions and such.
    From the numbers we saw so far it sounds like you're paying closer to 50% so that can't be right.

    Washington Income Tax Calculator | SmartAsset.com


    I find it funny that 6-7% is considered a really high sales tax down there... its 15% here and we're lucky it isn't more yet(but that's coming).
    Well, how much is your health insurance? How big is your deductible? Mine is $6k. And how much do you trust that when you need it they will payout?

    Washington does not have an income tax. We have a sales tax, 7% plus local add-ons, our machines, equipment, and repairs to them that last more than a year are exempt, and personal property tax. There are some other minor taxes but they barely apply if you ship most of your product out of state. For a small business, our taxes are not bad. I only speak of the state, if you are in some of the bigger cities then you may need some Vaseline.

  6. #25
    Join Date
    Jan 2007
    Location
    Flushing/Flint, Michigan
    Posts
    7,778
    Post Thanks / Like
    Likes (Given)
    390
    Likes (Received)
    6471

    Default

    One thing that shows up is that this is messy.
    I meet with my CPA and Lawyer at my shop every year.
    One is famous for saying, "Well ,they have passed another new accounting and legal help employment act for this year".
    He is speaking to rule changes but at least he was honest about it and how he made a living.
    Bob

  7. #26
    Join Date
    May 2010
    Country
    DENMARK
    Posts
    3,376
    Post Thanks / Like
    Likes (Given)
    4030
    Likes (Received)
    12605

    Default

    Quote Originally Posted by DavidScott View Post
    Well, how much is your health insurance? How big is your deductible? Mine is $6k. And how much do you trust that when you need it they will payout?
    No doubt about it, healthcare costs rise around the world. I wish one day someone would give me a logical explanation as to why the USA is so opposed to tax financed healthcare compared to health insurance?

    Countries with tax financed healthcare (partially or fully) also have many that take out insurance but mostly for the same reason as some have expensive cars and houses and some don't. They can afford it to pay for "extra". Why wait in a queue for non life threatening treatment if you have the money?

    Of course I have insurance for many things all of which I pay to just to make sure if the worst comes to the worst I don't go broke or similar. Healthcare is in a whole other league.

    List of countries by total health expenditure per capita - Wikipedia

  8. #27
    Join Date
    May 2009
    Country
    UNITED STATES
    State/Province
    Wyoming
    Posts
    3,239
    Post Thanks / Like
    Likes (Given)
    7836
    Likes (Received)
    5209

    Default

    Quote Originally Posted by Gordon B. Clarke View Post
    No doubt about it, healthcare costs rise around the world. I wish one day someone would give me a logical explanation as to why the USA is so opposed to tax financed healthcare compared to health insurance?
    We do have tax financed healthcare; it's called Medicare. It's mandatory after age 66. Just about anything is covered. My $500 prescription is about $10. We also have secondary private insurance to cover anything Medicare doesn't. The problem is that the older demographic's healthcare is paid for via taxes on the earnings of a much younger and smaller demographic, which means (like Social Security) it's not sustainable until enough codgers like me die off and some population balance ensues.

    Extending Medicare benefits to the entire population—including illegals, as Fauxcahontas/Lieawatha advocates, would require taxation levels guaranteed to crush small business. More to the point here on PM, that would of course include small machine shops, which is to say, most of the machine shops in this country. Not much chance it will happen, but if it ever does, the sole avenue for survival would be outright tax evasion and an underground economy. Or whatever machine shops do in Venezuela these days.

  9. Likes SND, Alloy Mcgraw, cnctoolcat, empwoer liked this post
  10. #28
    Join Date
    Aug 2018
    Country
    UNITED STATES
    State/Province
    Indiana
    Posts
    7
    Post Thanks / Like
    Likes (Given)
    0
    Likes (Received)
    3

    Default

    Quote Originally Posted by CarbideBob View Post
    "Well ,they have passed another new accounting and legal help employment act for this year".
    My accountant refers to this as the "Accountant's full employment act"!

  11. #29
    Join Date
    Aug 2018
    Country
    UNITED STATES
    State/Province
    Indiana
    Posts
    7
    Post Thanks / Like
    Likes (Given)
    0
    Likes (Received)
    3

    Default

    Quote Originally Posted by Prototypical View Post
    I do have expenses, cutting tools, shipping supplies and anything I can think of making a shop expense.

    It was my understanding that the R&D credit was done away with with the new tax laws enacted.
    I think she has been basically writing me a paycheck so that way I pay into SS, Medicaid and whatever else.

    I need your accountant :-)

    I appreciate everyone's input. This is a little more eye opening.
    I didn't even know there WAS an R&D credit. I merely deduct what I spend on R&D as an expense. I buy all fo my stock as an R&D expense. Machinery is necessary for R&D and God knows, "perishable tooling" is a justifiable expense.

    Your paying yourself a paycheck to pay Socialist Slavery is a good move. It was my posting so many years of losses that kept me from being eligible for disability when I got sick and could barely work for two years.

    My wife was pretty vocal about my not being able to get disability, until my accountant explained to her that I spent better than a quarter mil over those ten years on what would otherwise have been considered household expenses.

    I have many tell me I'm skating on thin ice with the cat/dog food etc.-until I point out that the IRS has blessed these deductions and has several examples where they ere justified-a boneyard that had dogs to keep thieves out and a bakery or brewery that had cats to keep vermin out. Mice defecating in Land Rovers ca be very expensive for me in client's vehicles. A couple shop moggies keep the mice down and are great goodwill ambassadors for the shop. Sadly, the moggy that would stand on her back legs and beg for pets died this past summer, but Diesel, Shop Moggy II is just friendly enough to entertain client's young daughters who come to the shop :-)

    When I had the Snap-On franchise, NO ONE questioned the dogs-or the guns I bought along with ammunition ;-)

  12. #30
    Join Date
    Apr 2004
    Location
    Modesto, CA USA
    Posts
    6,877
    Post Thanks / Like
    Likes (Given)
    0
    Likes (Received)
    1147

    Default

    A Roth IRA is a better deal if you are under 50 or so. You pay taxes on the money going in but no taxes on any money or profits taken out after retirement age.
    With a traditional IRA you do not pay taxes going in but any money taken out is fully taxable. Theory is you will be in a lower tax bracket after retirement. But I bet tax rates will increase in 10-20 years as baby boomers retire.
    Bill D.

  13. #31
    Join Date
    Dec 2003
    Country
    UNITED STATES
    State/Province
    Washington
    Posts
    4,674
    Post Thanks / Like
    Likes (Given)
    2190
    Likes (Received)
    3993

    Default

    And if you have a crappy year and wind up losing a fair bit, that is the time to Roth any IRA’s you have that aren’t presently Roth’ed . . . that is my plan for 2019

    We took a few big risks in 2019 and the payoff hasn’t gained momentum yet, but we sure have a much nicer place to work in!

  14. #32
    Join Date
    Feb 2004
    Location
    peekskill, NY
    Posts
    24,364
    Post Thanks / Like
    Likes (Given)
    0
    Likes (Received)
    4475

    Default

    Quote Originally Posted by Oldwrench View Post
    ...if it ever does, the sole avenue for survival would be outright tax evasion ....
    You mean like what Federal Express just did?

  15. #33
    Join Date
    Apr 2018
    Country
    UNITED KINGDOM
    Posts
    2,172
    Post Thanks / Like
    Likes (Given)
    0
    Likes (Received)
    997

    Default

    Quote Originally Posted by Oldwrench View Post
    The problem is that the older demographic's healthcare is paid for via taxes on the earnings of a much younger and smaller demographic, which means (like Social Security) it's not sustainable until enough codgers like me die off and some population balance ensues.
    Got some numbers on that ? I know what they say but in the mid-sixties, when us old coots started working, the population of the US was 180 million. Nowadays it's 350 million (give or take a few.)

    (That's kind of a shock, isn't it ?)

    So, I dunno, but that smaller demographic claim rings a bit false ...

  16. #34
    Join Date
    Aug 2010
    Country
    UNITED STATES
    State/Province
    Connecticut
    Posts
    1,904
    Post Thanks / Like
    Likes (Given)
    1472
    Likes (Received)
    2015

    Default

    Quote Originally Posted by jim rozen View Post
    You mean like what Federal Express just did?
    Any middle class person I have ever met who advocates higher tax rates ALWAYS wants others to pay higher taxes, not to include themselves. Aka "evil" people who actually create wealth.

    We all go to the accountant every year in a attempt to pay as little taxes as possible within the bounds of the law/tax code. A tax code I might add that no one fully understands, including most CPAs. A tax code that is so complex, that even people who dedicate their entire lives, with degrees on this specific subject, cannot not fully understand.

    You end up with what you are commenting on above. I have no idea what Fed-Ex paid in taxes last year....But even if they paid nothing, they contributed more then you did to the country and it's overall economy.

  17. Likes adh2000, Dualkit, SND liked this post
  18. #35
    Join Date
    Apr 2018
    Country
    UNITED KINGDOM
    Posts
    2,172
    Post Thanks / Like
    Likes (Given)
    0
    Likes (Received)
    997

    Default

    Quote Originally Posted by Alloy Mcgraw View Post
    Any middle class person I have ever met who advocates higher tax rates ALWAYS wants others to pay higher taxes, not to include themselves. Aka "evil" people who actually create wealth.
    Okay, let me just throw this up there for counterpoint ... I'd love to see Goldman-Sachs taxed right out of existence. In my book they create nothing. They are one great big leech sucking the lifeblood out of the country. People like them have (for example) replaced maufacturing with cheesy shopping malls so that they, and they alone, can collect every penny that flows anywhere in the society.

    To me, this crap is not "wealth" and I'd be only too happy to see these firms taxed right into the poorhouse. Unfortunately, since they own Congress lock, stock and barrel, this is not going to happen any time soon.

  19. Likes Demon73 liked this post
  20. #36
    Join Date
    Feb 2004
    Location
    peekskill, NY
    Posts
    24,364
    Post Thanks / Like
    Likes (Given)
    0
    Likes (Received)
    4475

    Default

    Quote Originally Posted by Alloy Mcgraw View Post
    I have no idea what Fed-Ex paid in taxes last year...
    Well you got it in one. Nothing. Their tax bill in 2018 was zero. If motion guru came here and said
    'hey, I have a great trick for avoiding federal income tax' you would be all ears. You'd be all ears.

    But if it involved paying off swampy politicians to get that? Drain the swamp, right. Not.
    Fed Ex as a corporation has one job and one job only. Not delivering packages. Not contributing to
    "MERICA."

    Anyone guess what the single most important product Fed EX produces? Hint, paying taxes is problem
    for that.

    Any one person who posts here, who works a job, any real job, contributes infinitely more to america than a non-person
    corporation does.

  21. #37
    Join Date
    Apr 2004
    Location
    Modesto, CA USA
    Posts
    6,877
    Post Thanks / Like
    Likes (Given)
    0
    Likes (Received)
    1147

    Default

    Quote Originally Posted by motion guru View Post
    And if you have a crappy year and wind up losing a fair bit, that is the time to Roth any IRA’s you have that aren’t presently Roth’ed . . . that is my plan for 2019

    We took a few big risks in 2019 and the payoff hasn’t gained momentum yet, but we sure have a much nicer place to work in!
    Smart move! Does that avoid the 10% early withdrawal penalty?
    Bill D

  22. #38
    Join Date
    Apr 2004
    Location
    Modesto, CA USA
    Posts
    6,877
    Post Thanks / Like
    Likes (Given)
    0
    Likes (Received)
    1147

    Default

    Regarding USA not having socialized health care I saw Trump, who claims to take no salary, Went to a government hospital at government expense for his latest health scare.
    I bet he would be turned down for his preexisting conditions.
    What happened to his great replacement for Obama care that has been 10 years in the planning stages?
    Bil lD

  23. #39
    Join Date
    Dec 2003
    Country
    UNITED STATES
    State/Province
    Washington
    Posts
    4,674
    Post Thanks / Like
    Likes (Given)
    2190
    Likes (Received)
    3993

    Default

    Quote Originally Posted by Bill D View Post
    Smart move! Does that avoid the 10% early withdrawal penalty?
    Bill D
    Yes . . . it is as simple as letting your IRA custodian know that you want to convert x dollars of your IRA to Roth and then that money shows up on your 1040 as income which offsets your losses due to your business. I will Roth my existing IRA account balance up to the point of my losses so that my payroll taxes don't exceed the 12% tax level and get a refund for the rest. Hopefully I don't have opportunity to do this again any time soon but while I have lemons, I am going to make lemonade!

  24. #40
    Join Date
    Aug 2010
    Country
    UNITED STATES
    State/Province
    Connecticut
    Posts
    1,904
    Post Thanks / Like
    Likes (Given)
    1472
    Likes (Received)
    2015

    Default

    Quote Originally Posted by jim rozen View Post
    Well you got it in one. Nothing. Their tax bill in 2018 was zero. If motion guru came here and said
    'hey, I have a great trick for avoiding federal income tax' you would be all ears. You'd be all ears.

    But if it involved paying off swampy politicians to get that? Drain the swamp, right. Not.
    Fed Ex as a corporation has one job and one job only. Not delivering packages. Not contributing to
    "MERICA."

    Anyone guess what the single most important product Fed EX produces? Hint, paying taxes is problem
    for that.

    Any one person who posts here, who works a job, any real job, contributes infinitely more to america than a non-person
    corporation does.
    When I hear people talk the way you do it reminds me that most people have no idea how business works, or what they contribute to society.

    You have no appreciation for the people who have made your world what it is....Or what they have sacrificed to make it possible.

  25. Likes Oldwrench, adh2000, empwoer, SND liked this post

Tags for this Thread

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
  •