It's tax time

[1982vett]

Except for real estate, I doubt capital gains are a problem. Only one of my mutual funds had capital gains to distribute an probably won't have any for several more years.

[Brandonm22]

For those of us who grow trees....capital gains is a HUGE problem.

[grannysoo]

Follow the money people.....

Congress writes tax laws that benefits congress. Learn them, study them, and then do as they do. The only way to beat the tax system is to work within it.

Study these two words: evasion / avoidance

Evasion = jail

Avoidance = my patriotic duty

[Angus Cowman]

Things are really going to change NEXT YEAR and the year after that as I understand the ongoing tax debate. Obama and the Dems want to take the tax issue off the table so most Americans will no longer pay any income taxes. In their vision, as I understand it if you make ~$30,000 or less you pay no income taxes; but get a big honking earned income tax credit of ~$3400 based on your number of dependents (thank you tax payers), $30,000 to $50,000 pay no income taxes but get a check back of ~$1000. $50,000 to $60,000 either pay no income taxes or what they pay is cancelled out by the $1000. ~$60,000 to 99,000 pay about what they pay now. The rich are going to get hammered. During the campaign "the rich" were over $250,000. During recent speeches, "the rich" has become 'over $200,000', 'over $150,000', and/or 'over $100,000'. Depending on where they ultimately set that line expect a 4-6% increase effective for either 2009, 2010, or 2011. There is also a strong possibility that they will take the ceiling off of FICA taxes and raise the capital gains rate and the rate that they tax dividend income. We really need to follow what exactly comes out of Washington closely and adjust your tax strategies accordingly.

I don't think this will ever work because for one I will fight it because I gross well over their limits and I net less than the income guidelines for the poverty level for a 2 person household
I think the only fair tax plan I have seen in yrs is the national sales tax that way evryone pays their fair share

[Caustic Burno]

Things are really going to change NEXT YEAR and the year after that as I understand the ongoing tax debate. Obama and the Dems want to take the tax issue off the table so most Americans will no longer pay any income taxes. In their vision, as I understand it if you make ~$30,000 or less you pay no income taxes; but get a big honking earned income tax credit of ~$3400 based on your number of dependents (thank you tax payers), $30,000 to $50,000 pay no income taxes but get a check back of ~$1000. $50,000 to $60,000 either pay no income taxes or what they pay is cancelled out by the $1000. ~$60,000 to 99,000 pay about what they pay now. The rich are going to get hammered. During the campaign "the rich" were over $250,000. During recent speeches, "the rich" has become 'over $200,000', 'over $150,000', and/or 'over $100,000'. Depending on where they ultimately set that line expect a 4-6% increase effective for either 2009, 2010, or 2011. There is also a strong possibility that they will take the ceiling off of FICA taxes and raise the capital gains rate and the rate that they tax dividend income. We really need to follow what exactly comes out of Washington closely and adjust your tax strategies accordingly.

I don't think this will ever work because for one I will fight it because I gross well over their limits and I net less than the income guidelines for the poverty level for a 2 person household
I think the only fair tax plan I have seen in yrs is the national sales tax that way evryone pays their fair share

I have been dumping my stocks the ones that are up for the year and investing in tax free muni's and treasuries.
The capital gain tax is going to drive more investors away from Wall Street. The down side is the real jobs come from Wall street. You can't tax the few to pay the many, I guess you can if you have a socialist view.

[Jim62]

........."the real jobs come from Wall Street".........

Can you 'splain that a little more? I'm under the impression that the jobs created by Wall Street consist of paper-shuffling, and produce nothing other than more paper to shuffle. I don't consider that to be a "real job".

[Caustic Burno]

........."the real jobs come from Wall Street".........

Can you 'splain that a little more? I'm under the impression that the jobs created by Wall Street consist of paper-shuffling, and produce nothing other than more paper to shuffle. I don't consider that to be a "real job".

How do you think coperations raise capital ? They sell stock, they sell commercial paper, buy commercial paper
borrow from investment banks.
Oct. 8 (Bloomberg) -- MetLife Inc., the biggest U.S. life insurer, plans to raise capital and cut jobs after saying third- quarter profit fell as much as 48 percent.

MetLife is selling 75 million shares, valued at $2.8 billion at current prices, the New York-based company said yesterday in a statement. The insurer wants to assure investors it has liquidity to meet obligations and enable the company ``to take advantage of potential opportunities,'' Chief Executive Officer Robert Henrikson said. Last week, Atlantic Equities analyst Alan Devlin predicted MetLife could raise capital to bid on assets of American International Group Inc.

[texanstraders]

I'm proud to say we are already DONE and filed...But I have to confess ,the wife is a very attentive type and has a degree in accounting (although not her career)..
One thing I wanted to pass on related to depreciation , with the stimulus package last year, they put in place some extra deductions for equipment purchases..It SAVED us a LOT of money since we bought a new tractor and some other equipment last year... You all should read the link below if you are doing your own taxes...
http://taxes.suite101.com/article.cfm/e ... ct_of_2008

[Jim62]

I guess we have different ideas as to what a "real job" is.

[cowsrus]

Thanks for all your response's, i do my own taxes every year and it's a nightmare trying to keep myself informed. There are way, way too many rules and forms.

[Caustic Burno]

Thanks for all your response's, i do my own taxes every year and it's a nightmare trying to keep myself informed. There are way, way too many rules and forms.

This is why the average American gets in trouble, I read somewhere the average citizen has an IQ of 90 and reads on a fifth grade level.
These laws are written by lawyers with the intent of confusion.
Very few people understand the tax codes including the IRS agents they have red flags. If you raise a red flag then they start digging into your present and past returns.
Same thing applies to economics after you get past the balancing the family checkbook most don't have a clue to what they don't know. We base our thinking on what we know which is a very limited view.
These are the reasons you need an excellent CPA/Financial planner, they do away with a lot of stress and worry.
Besides dealing with IRS issues they can help you plot a coarse for retirement and not have to worry about just living off Social Security and dog food.

[Angus Cowman]

Thanks for all your response's, i do my own taxes every year and it's a nightmare trying to keep myself informed. There are way, way too many rules and forms.

This is why the average American gets in trouble, I read somewhere the average citizen has an IQ of 90 and reads on a fifth grade level.
These laws are written by lawyers with the intent of confusion.
Very few people understand the tax codes including the IRS agents they have red flags. If you raise a red flag then they start digging into your present and past returns.
Same thing applies to economics after you get past the balancing the family checkbook most don't have a clue to what they don't know. We base our thinking on what we know which is a very limited view.
These are the reasons you need an excellent CPA/Financial planner, they do away with a lot of stress and worry.
Besides dealing with IRS issues they can help you plot a coarse for retirement and not have to worry about just living off Social Security and dog food.

I agree 100% CB that is also when I make anypurchases of more than a few $1000 I always call my accountant first and see if I need to buy it or if it will benefit me on the taxes, I have had her call me in November and tell me you need to spend x amount of $ or you are going to have to pay X amount of taxes and I would sure rather spend my money on something I can see or use than just giving it to the IRS

A good accountant is worth their weight in gold

[Douglas]

I'm proud to say we are already DONE and filed...But I have to confess ,the wife is a very attentive type and has a degree in accounting (although not her career)..
One thing I wanted to pass on related to depreciation , with the stimulus package last year, they put in place some extra deductions for equipment purchases..It SAVED us a LOT of money since we bought a new tractor and some other equipment last year... You all should read the link below if you are doing your own taxes...
http://taxes.suite101.com/article.cfm/e ... ct_of_2008

You need to keep your eye out for the stimulus package stuff in congress. There are a few things that may be retroactive to 2008. My suggestion would be to get your tax stuff ready but don't send it in for a while yet.

[Brandonm22]

You need to keep your eye out for the stimulus package stuff in congress. There are a few things that may be retroactive to 2008. My suggestion would be to get your tax stuff ready but don't send it in for a while yet.

Go ahead and file (if you can....I am still waiting on just about everything myself). If Congress is really stupid and makes something retroactive to 2008 you can always file an ammended return. I really doubt that anything comes down that affects a lot of people in a big way a month after filing began other than another one of these idiotic one time tax rebate checks/stimulus (that last one sure didn't do much to improve the macro economy) and then the earlier you can get your return in the sooner you get the check.

[Rustler9]

Filed already, big loss on the farm, have money coming back. Figured if I was getting something back I should go ahead and get er done. Hope I never get audited but my tax lady thinks I'll be fine even if I do.