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?
Amos
A Taxing Situation
A Taxing Situation
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...
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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