Farming and Taxes

[herofan]

Herofan, I would stay the course. Its worked well for you thus far so why fix what isn't broke. Lot to be said for having money in the bank.

Sounds good to me!

 

[gimpyrancher]

If one makes $100,000 and pays no taxes, how is that different than someone that isn't working and not paying taxes but collecting a very small amount of benefits from the government?

Of course I'm just guessing that the guy making $100,000 is using far more government provided programs and services ("free money") than the poor guy that isn't working. Roads, water system, electric services, subsidies, etc. etc. I know that the guy that isn't working is putting far, far fewer miles on our roads than those making $100,000 per year.

Personally I applaud Herofan for being a great example of a true blue American. Working and making money in America is not a right, it's a privilege. Or at least it used to be. So is paying taxes on the money we earn to pay for the common good for all Americans.

So many of us seem to have forgotten how lucky we are to live here instead of Iran or similar.

Good on ya Herofan. :clap:

 

[Bigfoot]

If one makes $100,000 and pays no taxes, how is that different than someone that isn't working and not paying taxes but collecting a very small amount of benefits from the government?

Of course I'm just guessing that the guy making $100,000 is using far more government provided programs and services ("free money") than the poor guy that isn't working. Roads, water system, electric services, subsidies, etc. etc. I know that the guy that isn't working is putting far, far fewer miles on our roads than those making $100,000 per year.

Personally I applaud Herofan for being a great example of a true blue American. Working and making money in America is not a right, it's a privilege. Or at least it used to be. So is paying taxes on the money we earn to pay for the common good for all Americans.

So many of us seem to have forgotten how lucky we are to live here instead of Iran or similar.

Good on ya Herofan. :clap:

Reagonomics makes the 100k guy more valuable to our economy.

 

[highgrit]

Herofan, I would stay the course. Its worked well for you thus far so why fix what isn't broke. Lot to be said for having money in the bank.

But having a nice new tractor with AC to cut and bale with is priceless. And it will add years to your life.
Who's doing the most for our economy gimpyrancher? And when you spend your 100k your paying taxes. Heck look at the taxes we pay on our phones. And the deadbeats and freeloaders have them for free. If you don't want to work, you should go hungry.

 

[JSCATTLE]

If one makes $100,000 and pays no taxes, how is that different than someone that isn't working and not paying taxes but collecting a very small amount of benefits from the government?

Of course I'm just guessing that the guy making $100,000 is using far more government provided programs and services ("free money") than the poor guy that isn't working. Roads, water system, electric services, subsidies, etc. etc. I know that the guy that isn't working is putting far, far fewer miles on our roads than those making $100,000 per year.

Personally I applaud Herofan for being a great example of a true blue American. Working and making money in America is not a right, it's a privilege. Or at least it used to be. So is paying taxes on the money we earn to pay for the common good for all Americans.

So many of us seem to have forgotten how lucky we are to live here instead of Iran or similar.

Good on ya Herofan. :clap:

I pay a lot more in property tax and gas tax than the so called poor . That pays for the free stuff as you call it. I don't believe that once poor always poor . I grew up in a 600 sf house with one good pair of jeans for school . I've witnessed my dad go with out eating to feed us kids. But he owned his own home and was way better off than his folks . I learned a craft from my dad starting a 10 years old. Because I didn't want to be poor. There might be some luck involved but I think poor is a state of mind and a lack of self motivation. Anyone is capable of bettering themselves. So I have no simpathy for 99% of the "poor" .

 

[highgrit]

Poor is relative also. My grandparents never owned a home, they couldn't afford to. But they never waited for a check on the front porch either.

 

[Brute 23]

I struggle with this question all the time. I'm starting to lean more towards the majority.

Suppose your in the 33% tax bracket. Then state tax is 6%. For that dollar you made, almost 40 cents is gone come December 31st. You can pay the tax, and keep 60 cents. The other side of the coin, you can spend the dollar, and keep the dollar. I guess in the end, it comes to to what you want to collect-------Dollars or things?

If your going to collect dollars, I'd recommend you save the maximum allowed tax deferred each year.

If your going to collect things, collect things you can get most of your money back out of.

That is not correct. You don't spend a dollar and keep the dollar. You are handing one person a dollar to keep from paying another person $0.33 if you are in a 33% tax bracket. If it's 20% it's $0.20. If the item you purchased with that dolkar depreciates, costs you more to maintain, or does not return you, 33%... you have lost money.

The majority of people are broke so going with the majority is a bad thing.

Paying taxes means you made a profit. Not paying taxes means you did not make a profit. It's that simple.

:nod: Did you do FPU, or do you just listen to the radio program?

Use to work out of my truck so I listened every single day.

We went through a very rough patch in my family growing up due to debt. My brother and I knew we never wanted to be in that position again. He is 4yrs older so he lead the way and set a great example. DR fell right in line with what he was doing and where I wanted to be.

 

[rogergreaves]

I would not try so hard to find ways to not pay any more taxes than I absolutely have to if I did not see how my tax money was wasted. I use every single legal write off I can. If I have to purchase something to reduce it I do. "Its my money and I want it now" jg Wentworth

Please give me an example. Let's say I make $100,000 on the farm and owe $18,000 in income tax. What is a scenario where I could buy something and still have $82,000 in the bank?

For starters, if that $100K is your AGI, you don't owe $18,000, you owe $28,000. You probably couldn't eliminate the tax bill. But if there was some earned income in there from a job, you could fund an IRA for you and for your wife and shelter $11,000. Much more if you had access to a 401k. Or you could lease a piece of gear that would make you more efficient. The lease payment would be deductible in the year paid. But I wouldn't do that just on a tax management basis. You would need solid operational reasons to get that gear. If you don't manage your tax bill, they'll try to take it all. Don't do anything illegal but certainly do EVERYTHING legal to reduce your bill.

 

[TexasBred]

Herofan, I would stay the course. Its worked well for you thus far so why fix what isn't broke. Lot to be said for having money in the bank.

Don't have to worry about it increasing your taxes either at the rates it earns these days. Banks are actually buying adds around here to advertise .75% interest on CD's.....who would have ever thunk it.

 

[Jogeephus]

Herofan, I would stay the course. Its worked well for you thus far so why fix what isn't broke. Lot to be said for having money in the bank.

Don't have to worry about it increasing your taxes either at the rates it earns these days. Banks are actually buying adds around here to advertise .75% interest on CD's.....who would have ever thunk it.

I just got me some of that 0.75% this week. Pitiful. But overall, I made 8% this year so I'm happy.

Now if you want to just beat the system altogether you could just set up a semen company in the Cayman Islands then buy all your semen from this company. Sure its expensive, and sure it will take every dollar you make to buy the semen but this semen is better than anything you can buy in the States. Of course since you are now nearly broke now from buying this semen and need some cash to operate, I suspect, since you are this company's sole customer and their very existence depends on you, they will gladly loan you money at 0% interest so you can continue running your operation. And if you default, I suspect they will never try and collect a dime from you. This works good for the good folks in DC and there are more millionaires there than anywhere else so there must be something to it.

 

[Jabes0623]

Talk about a loaded subject!

There's absolutely no reason to pay one cent in taxes you don't have to. The U.S. government is by far & away the most fiscally irresponsible institution in the history of the world. They do not take from the rich & give to the poor. They take from the hard working & give to the fat, lazy, & stupid. They abuse their power for personal gain. My Father once told me "Son, something is wrong when a man will spend 5 million $'s to get a job that pays $200,000."

As was stated above by another poster, hire a good accountant & push your $ through as many loopholes as you can because if you don't protect your $ the Government of the USA will darn sure waste it & you'll get nothing in return. They'll hand your $ to some foreign government or welfare slob & 365 days later they'll be back for more. Think of all the taxes we pay, gas tax, property tax, sales tax, estate tax, income tax on & on & on. If you add up all the $ you actually hand the government most of us here would probably find that we give 50 cents of every dollar we make to the government. That's more than enough & I don't feel one bit bad about taking advantage of every deduction I can get my hands on.

 

[herofan]

Talk about a loaded subject!

There's absolutely no reason to pay one cent in taxes you don't have to. The U.S. government is by far & away the most fiscally irresponsible institution in the history of the world. They do not take from the rich & give to the poor. They take from the hard working & give to the fat, lazy, & stupid. They abuse their power for personal gain. My Father once told me "Son, something is wrong when a man will spend 5 million $'s to get a job that pays $200,000."

As was stated above by another poster, hire a good accountant & push your $ through as many loopholes as you can because if you don't protect your $ the Government of the USA will darn sure waste it & you'll get nothing in return. They'll hand your $ to some foreign government or welfare slob & 365 days later they'll be back for more. Think of all the taxes we pay, gas tax, property tax, sales tax, estate tax, income tax on & on & on. If you add up all the $ you actually hand the government most of us here would probably find that we give 50 cents of every dollar we make to the government. That's more than enough & I don't feel one bit bad about taking advantage of every deduction I can get my hands on.

I agree, there is no reason to pay a cent more in taxes than one has to. I certainly don't leave them a tip in April, and I would certainly take advantage of every legal deduction that I could that would benefit me. How do you feel about my original question of buying for a write-off vs saving?

This whole tax thing just never has gotten me too excited over the years, but I sometimes wonder if I've missed something by not being more concerned.

We have a tax service near me, for example, that guarantees more money back at the end of the year. I don't go to him, and I don't know his background, but he claims to know much more about taxes than any other place; he guarantees that he will get you a bigger refund than any other place. there are people around here who go crazy over this guy. He counts off everything under the sun for people. This guy has been around for years, and so far, I haven't heard of anyone having trouble with his work, but I just don't understand how a person can guarantee a bigger refund than anyone else, and how he supposedly knows about all the deductions that other professionals supposedly don't. I think it will come back to bite him and some of his customers some day.

 

[TexasBred]

Talk about a loaded subject!

There's absolutely no reason to pay one cent in taxes you don't have to. The U.S. government is by far & away the most fiscally irresponsible institution in the history of the world. They do not take from the rich & give to the poor. They take from the hard working & give to the fat, lazy, & stupid. They abuse their power for personal gain. My Father once told me "Son, something is wrong when a man will spend 5 million $'s to get a job that pays $200,000."

As was stated above by another poster, hire a good accountant & push your $ through as many loopholes as you can because if you don't protect your $ the Government of the USA will darn sure waste it & you'll get nothing in return. They'll hand your $ to some foreign government or welfare slob & 365 days later they'll be back for more. Think of all the taxes we pay, gas tax, property tax, sales tax, estate tax, income tax on & on & on. If you add up all the $ you actually hand the government most of us here would probably find that we give 50 cents of every dollar we make to the government. That's more than enough & I don't feel one bit bad about taking advantage of every deduction I can get my hands on.

Jabes we all should take advantage of every deduction we can qualify for. That is why they are allowed and I'm sure everyone does. The question is whether or not it is wise to spend a goodly amount of money on something you do need in order to save on your taxes. The system is set up to get the tax money eventually. Maybe not this year or next year but maybe just a little over the next 10 years...they will get it. You can send it overseas but then be prepared to move over there where it is an live there to spend and enjoy it. Always take every deduction the law allows but do not ever fail to report income. That is tax evasion and you'll end up spending all that "saved" money on attorneys and still have a long vacation in prison.

AS for your comments about our government wasting money etc.....very very true and when it's all gone they only have two sources.....get more of your money or issue treasury bills which are secured by your money and sell them to a foreign country. It does all carry a certain odor. :nod:

 

[Jogeephus]

What I find interesting are people who will ask for extensions. I know a guy who is running three years behind on his taxes due to these extensions. Can't get my hear around why you'd do this. As said, the IRS will get their money eventually whether you have it or not. I'd just soon pay them and be done with them because all I want is them to leave me alone.

 

[Jabes0623]

Talk about a loaded subject!

There's absolutely no reason to pay one cent in taxes you don't have to. The U.S. government is by far & away the most fiscally irresponsible institution in the history of the world. They do not take from the rich & give to the poor. They take from the hard working & give to the fat, lazy, & stupid. They abuse their power for personal gain. My Father once told me "Son, something is wrong when a man will spend 5 million $'s to get a job that pays $200,000."

As was stated above by another poster, hire a good accountant & push your $ through as many loopholes as you can because if you don't protect your $ the Government of the USA will darn sure waste it & you'll get nothing in return. They'll hand your $ to some foreign government or welfare slob & 365 days later they'll be back for more. Think of all the taxes we pay, gas tax, property tax, sales tax, estate tax, income tax on & on & on. If you add up all the $ you actually hand the government most of us here would probably find that we give 50 cents of every dollar we make to the government. That's more than enough & I don't feel one bit bad about taking advantage of every deduction I can get my hands on.

I agree, there is no reason to pay a cent more in taxes than one has to. I certainly don't leave them a tip in April, and I would certainly take advantage of every legal deduction that I could that would benefit me. How do you feel about my original question of buying for a write-off vs saving?

This whole tax thing just never has gotten me too excited over the years, but I sometimes wonder if I've missed something by not being more concerned.

We have a tax service near me, for example, that guarantees more money back at the end of the year. I don't go to him, and I don't know his background, but he claims to know much more about taxes than any other place; he guarantees that he will get you a bigger refund than any other place. there are people around here who go crazy over this guy. He counts off everything under the sun for people. This guy has been around for years, and so far, I haven't heard of anyone having trouble with his work, but I just don't understand how a person can guarantee a bigger refund than anyone else, and how he supposedly knows about all the deductions that other professionals supposedly don't. I think it will come back to bite him and some of his customers some day.

IMO if buying something you can at all justify will drop you into a lower tax bracket you should absolutely do it.

I'd much rather my "tax" $'s wind up in my local economy & on my land as equipment than in Pakistan where it'll be used by some tribal elder to fund his poppy farm instead of building a school with it like he's supposed to.

As far as your local tax wizard, I can't say as I don't know him. However what I can tell you is that it's your signature on that return & if something is afoul they're going to come looking for you & if fines or jail time is involved it's going to be you paying/serving them. So be very careful who you choose to work with. A good accountant is worth his/her weight in gold, & there's plenty of stand up people in the accounting profession who will save you $ legally. No amount of $ saved is worth doing 3-5 years in Federal prison for tax evasion.

 

[mwj]

These threads show you the Ag equipment salesman's best tool! :cowboy: Do you suppose he will drop that tractor payment a little if the markets drop and you do not have that big tax bill in a couple of years? :shock:

 

[Jogeephus]

These threads show you the Ag equipment salesman's best tool! :cowboy:

Your so right especially when it takes so little to convince the person "YOU DESERVE IT AND OWE IT TO YOURSELF" :lol2:

 

[TexasBred]

These threads show you the Ag equipment salesman's best tool! :cowboy: Do you suppose he will drop that tractor payment a little if the markets drop and you do not have that big tax bill in a couple of years? :shock:

Just sell it...then you write off a big a$$ loss on it. :???:

 

[Jogeephus]

These threads show you the Ag equipment salesman's best tool! :cowboy: Do you suppose he will drop that tractor payment a little if the markets drop and you do not have that big tax bill in a couple of years? :shock:

Just sell it...then you write off a big a$$ loss on it. :???:

Like Dun says, "funny how the mind wanders". This whole thing has me thinking about Daylight Savings Time.

 

[Brute 23]

It's amazing how many people will buy stuff to lower their taxes but won't fund a ROTH or SEP. :roll: That's the best way to lower you taxes and keep you money.