Re: income tax returns
[Re: yousowise]
#7545389
03/31/22 09:39 PM
03/31/22 09:39 PM
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Joined: Dec 2011
Posts: 4,040 ND
grumley701
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trapper
Joined: Dec 2011
Posts: 4,040
ND
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If you had to pay a lot, then you made a lot. sounds like theft to me...
Pure Blood
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Re: income tax returns
[Re: grumley701]
#7545460
03/31/22 10:46 PM
03/31/22 10:46 PM
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Joined: Jan 2007
Posts: 150 SW Idaho
yousowise
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trapper
Joined: Jan 2007
Posts: 150
SW Idaho
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If you had to pay a lot, then you made a lot. sounds like theft to me... Wow, would I like to keep everything I make? Yep! Is there a lot of waste? Yep! Is the government a good steward of my money? Nope! Does the tax system need overhauled? You bet!! But until then I’ll pay as little as legally possible. Now would I like to make $50,000 a year and pay nothing, maybe even collect a little (I’ve still got kids at home)? Or would I prefer to make$150,000 and pay $25,000 to support our troops and everything else that makes this the best country on earth? I’ll take the $150,000.
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Re: income tax returns
[Re: Tailhunter]
#7545470
03/31/22 10:58 PM
03/31/22 10:58 PM
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Joined: Feb 2020
Posts: 8,974 Indiana
Providence Farm
trapper
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trapper
Joined: Feb 2020
Posts: 8,974
Indiana
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Yep, usually paying a lot in taxes is a good thing. That is never a good thing. Hire a better accountant. And buy a farm. Last year I finally claimed my farm income and expenses for the first time. I went from owning $8,500 to getting a $3200 return. I can't believe I didn't start claiming my expenses sooner. I think I wanted to make a profit first. But it was generating an income but still at a slight loss but getting closer to profitable. It would be profitable if I were home more to help develop markets but it's getting there. It may have been a money pit the last several year but because I claimed my expenses it saved the difference in what I owed and got back and that I could put back into equipment to save time and efficacy that should lead to being able to become profitable sooner.
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Re: income tax returns
[Re: west river rogue]
#7545484
03/31/22 11:28 PM
03/31/22 11:28 PM
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Joined: Dec 2017
Posts: 6,225 Kansas
Pawnee
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trapper
Joined: Dec 2017
Posts: 6,225
Kansas
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I get my stuff from the accountant tomorrow morning. I always hate this time of year. One big bite in the butt.
Everything the left touches it destroys
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Re: income tax returns
[Re: bblwi]
#7545499
03/31/22 11:46 PM
03/31/22 11:46 PM
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Joined: Aug 2008
Posts: 1,629 alaska
3 Fingers
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trapper
Joined: Aug 2008
Posts: 1,629
alaska
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I did taxes for farmers for a bit over 30 years and do one yet now. Owning a self employed business and filing on a cash basis is one of the easiest ways to manage taxes I have ever worked with. I went to tax preparer courses for decades and there were no other businesses that were able to manage taxable income like cash filing farmers could.
Bryce Yup. Fishing and farming are very similar in this way. Seems like everything you do is for the business and therefore a business expense. Hope to have my numbers in to the accountant by Monday. Gonna owe.
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Re: income tax returns
[Re: 3 Fingers]
#7545545
04/01/22 01:03 AM
04/01/22 01:03 AM
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Joined: Feb 2020
Posts: 8,974 Indiana
Providence Farm
trapper
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trapper
Joined: Feb 2020
Posts: 8,974
Indiana
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I did taxes for farmers for a bit over 30 years and do one yet now. Owning a self employed business and filing on a cash basis is one of the easiest ways to manage taxes I have ever worked with. I went to tax preparer courses for decades and there were no other businesses that were able to manage taxable income like cash filing farmers could.
Bryce Yup. Fishing and farming are very similar in this way. Seems like everything you do is for the business and therefore a business expense. Hope to have my numbers in to the accountant by Monday. Gonna owe. I wonder if I would be pushing it to buy a new thermal with NV overlay optic, new supresed rifle for predator comtrole Can't have the lights and noise spooking the livestock after all. It would be a good deduction;)
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Re: income tax returns
[Re: yousowise]
#7545772
04/01/22 10:42 AM
04/01/22 10:42 AM
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Joined: Jul 2012
Posts: 2,619 Nebraska
WadeRyan
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trapper
Joined: Jul 2012
Posts: 2,619
Nebraska
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If you had to pay a lot, then you made a lot. What baffles my mind is in my case, with only my income I pay in $3172 a month between Federal and State. Have to file quarterly. At the end of the year I got $47 back from state and paid in $6900 Federal. Yet someone that doesn't work an hour in the year gets a "return." If you can explain how that's a good thing I will let my mind be at ease.
Last edited by WadeRyan; 04/01/22 10:43 AM.
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Re: income tax returns
[Re: Tailhunter]
#7545800
04/01/22 11:22 AM
04/01/22 11:22 AM
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Joined: Mar 2007
Posts: 1,225 Midland, MI.
Seldom
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trapper
Joined: Mar 2007
Posts: 1,225
Midland, MI.
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Yep, usually paying a lot in taxes is a good thing. That is never a good thing. Hire a better accountant. Hire a better accountant eh? That’s got to be a “tongue-in-cheek” answer! LOL
"A few want to know WHY, the majority appear to be satisfied just knowing HOW!" Youtube Channel- SeldomFales
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Re: income tax returns
[Re: bblwi]
#7545810
04/01/22 11:29 AM
04/01/22 11:29 AM
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Joined: Mar 2007
Posts: 1,225 Midland, MI.
Seldom
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trapper
Joined: Mar 2007
Posts: 1,225
Midland, MI.
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They don't get a return, they may get a refund. A return is what you send in, a refund is what you get back if you get a refund. Those that don't work don't get refunds, refunds are monies returned to you that you overpaid. If you don't work and receive money it is some type of credit.
Bryce LOL Bryce, that’s doesn’t make us feel better! LOL
"A few want to know WHY, the majority appear to be satisfied just knowing HOW!" Youtube Channel- SeldomFales
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Re: income tax returns
[Re: yousowise]
#7546155
04/01/22 07:46 PM
04/01/22 07:46 PM
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Joined: Dec 2006
Posts: 1,902 MI
trappingthomas
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trapper
Joined: Dec 2006
Posts: 1,902
MI
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If you had to pay a lot, then you made a lot. Lots of times this is true but total bull in the bigger picture. Let's say you collect $10,000 a month rent on a commercial property. Your income is $120,000 a year. Of course you can expense certain things. Let's say you also owe a mortgage on that property that is $9,000 a month. You still made $120,000 minus what you can deduct as legal expenses toward the property. What you can NOT expense is the $9,000 per month mortgage. Only interest on the mortgage can be deducted. Anything paid toward principal can not. So adjusted gross income does not always equate to making a lot. Many people/entity's with massive income drown due to having greater tax burden than cash at hand. You can call it bad planning. Truth is it is one of the many reasons it is hard to climb to the top in our tax system. IMO
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Re: income tax returns
[Re: bblwi]
#7546842
04/02/22 03:56 PM
04/02/22 03:56 PM
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Joined: Dec 2006
Posts: 1,902 MI
trappingthomas
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trapper
Joined: Dec 2006
Posts: 1,902
MI
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If you have a 9k per month mortgage payment for say a 20 year mortgage which means you borrowed several million dollars to generate $120 K per that is not the IRS's fault you did that. Also if you paid that much for the properties your depreciation would be high enough to wipe out any profit you may have. You could own this for many years with no taxable income but when you sell you would need to claim as income all the depreciation you claimed. If the selling price goes up enough there will be gain to cover if not you could have a substantial tax liability to pay. I did taxes for several rental owners and almost all were losing monies even when they were able to do almost all the remodeling and maintenance themselves. Many chose to invest in these to hide income and grow assets. Many were carpenters, plumbers, etc. that were handy, made very good money and chose to invest in rental RE.
Bryce In my experience noting is the the IRS's fault. LOL Just pointing out to yousowise that paying taxes on a bunch of money does not mean you have a dime. My example was not real life. The one in real life was an land contract amortized much shorter then 20 years with a triple net lease. Was a small part of a bigger deal with a business being purchased separately. Was still the losing part of the deal. As you say does erase a bit of income and hopefully it is a asset that maintains or grows in value.
Last edited by trappingthomas; 04/02/22 03:56 PM.
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