A Taxing Situation

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1010 crawler
1010 crawler
Posts: 360
Joined: Thu Aug 11, 2016 7:29 am
Location: Piney Woods of east Texas

A Taxing Situation

Post by amos » Sun Jan 21, 2018 7:34 am

My least favorite time of year is fast approaching. Tax Time. Ugh.I believe in paying my fair share to support the good ol' U.S.A. but usually have a differing opinion as to what "fair share" is.Over half of my earnings going to state and local taxes(SALT) as well as federal income tax? That is pretty harsh.
I stopped doing my taxes years ago: just too dang complicated and gave the CPA very specific instructions: make sure I get all legal deductions and do not take any deduction that triggers an audit(home office,mileage,"business phone",etc) and have still been audited by the I.R.S. 3 times over the years(each time I had overpaid my taxes).
Here's what has netted greatest LEGAL tax savings here in Texas:
Farm Expense. In Texas you now have to register your farm with the Texas Comptroller and you get a state tax I.D. number for the farm if you want to save on sales tax(8.25%) etc.Same tax I.D. status allows for savings on federal income taxes.Lumber for a barn is deductible. Lumber for a house is not...Fuel for a tractor/dozer is deductible. Fuel for my truck is not...
Any farm use equipment is deductible: tractors,disc,plow,dozers,TLB's you name it as well as parts and repair for same.Cost of a farm use only(registered as a farm truck) vehicle is deductible as are trailers.
L.L.C.'s: if you buy,fix,and sell equipment in volume then an LLC helps. If you are selling a piece or 2 a year keep it simple and do cash transactions.
So Mr.Bill down the road wants a small pond and you have the time and equipment and he pays you $5000.00 in cash. Let the good Lord be your guide and decide what your "fair share" in taxes is.
Took you 100 hours to build that pond and if you're at the 28% tax bracket did someone from "the government" spell you for 28 hours in the dozer seat?
Pushin hard or diggin deep life is good.
What's ahead is what matters. What's behind is already done.
A fool of a man is he who doesn't ask questions...
God gave us 2 ears and 1 mouth for a reason...

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