Menu
Forums
New posts
Search forums
What's new
New posts
New media
New media comments
New profile posts
Latest activity
Media
New media
New comments
Search media
Members
Current visitors
New profile posts
Search profile posts
Log in
Register
What's new
Search
Search
Search titles and first posts only
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Forums
Cattle Boards
Beginners Board
Fast Money
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Help Support CattleToday:
Message
<blockquote data-quote="SF" data-source="post: 152043" data-attributes="member: 1171"><p>I don't necessarily think farmers are rich just because they have new trucks and everything. Rich is a relative term. But they are certainly not broke or poor. Broke people and poor people don't buy those things.</p><p></p><p>Accounting 101, you cannot spend your way out of paying taxes. You only pay taxes when you make money. Using your info, if you buy a 40,000 pickup, salvage value of 20,000, means you have 20,000 worth of depreciation. Assuming this is over a 2 year period, that will be about 10,000 per year. You taxable income will be reduced by 10,000, thus reducing your taxes by 1,000 to 3,200 depending upon which tax bracket you are in. In summary you will spend 40,000 (if paying cash) to save 1,000 to 3,200 in taxes. If you finance and make payments, then we can assume a 700 per month payment, so you will spend 8,400 to save 1,000 to 3,200. Just doesn't make sense now does it.</p><p></p><p>If you make money, you pay taxes. If you don't pay taxes, you; 1) dont' make any money, 2) are evading taxes and may someday face prosecution.</p></blockquote><p></p>
[QUOTE="SF, post: 152043, member: 1171"] I don't necessarily think farmers are rich just because they have new trucks and everything. Rich is a relative term. But they are certainly not broke or poor. Broke people and poor people don't buy those things. Accounting 101, you cannot spend your way out of paying taxes. You only pay taxes when you make money. Using your info, if you buy a 40,000 pickup, salvage value of 20,000, means you have 20,000 worth of depreciation. Assuming this is over a 2 year period, that will be about 10,000 per year. You taxable income will be reduced by 10,000, thus reducing your taxes by 1,000 to 3,200 depending upon which tax bracket you are in. In summary you will spend 40,000 (if paying cash) to save 1,000 to 3,200 in taxes. If you finance and make payments, then we can assume a 700 per month payment, so you will spend 8,400 to save 1,000 to 3,200. Just doesn't make sense now does it. If you make money, you pay taxes. If you don't pay taxes, you; 1) dont' make any money, 2) are evading taxes and may someday face prosecution. [/QUOTE]
Insert quotes…
Verification
Post reply
Forums
Cattle Boards
Beginners Board
Fast Money
Top