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  1. #16
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    Quote Originally Posted by SNSTER View Post
    So are you saying I'll be continuing to get punished come tax time for not having kids?
    Not punished but no deduction. As my business teacher use to say " it's not tax fraud it's tax avoidance and perfectly legal." Now for the kids I will send them over to your condo this weekend and I'm sure by the end of the weekend you will say "I don't need the 2k deduction".
    Live, Love, & Laugh

  2. #17
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    Quote Originally Posted by Wildcat View Post
    I've had my tickets for Kansas State football for 20 years as of this year....and have never minded the "required donation" until the last couple years. I haven't been able/wanted to go to a game in 2-3 seasons due to kids activities, house work, work, etc...

    Now that the donation is no longer deductible, it's gonna get a lot easier to give up those tickets. We shall see. I've always been able to sell them and recoup most of my cost...but not having a lot of luck this year. I'm starting to see that money as being spent better elsewhere, and I've gotten to the point I prefer watching on TV anyway.
    Funny you say that we live in Columbia and maybe attend 2 Missouri games a year. We are still boating when season starts and maybe hit one home game as a family. We listen to the rest on radio or tv and I attend one away game in late sept or oct with my college buddies. This year it's alabama. We have been to kentucky, tenn, old miss, And Texas twice for bowl games.

    My neighbor is a Kansas state fan and has season tickets. They leave a camper over there and go to every game.
    Live, Love, & Laugh

  3. #18
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    Quote Originally Posted by ya never know View Post
    Funny you say that we live in Columbia and maybe attend 2 Missouri games a year. We are still boating when season starts and maybe hit one home game as a family. We listen to the rest on radio or tv and I attend one away game in late sept or oct with my college buddies. This year it's alabama. We have been to kentucky, tenn, old miss, And Texas twice for bowl games.

    My neighbor is a Kansas state fan and has season tickets. They leave a camper over there and go to every game.
    We have an RV parking pass and the intentions has always been to ride out the storm of soccer Saturdayís and utilize an RV to attend games. Who knows. Iíd hate to give up my parking and seats but it gets easier to think about by the day. Fall weekends at the lake (after Labor Day, so late summer, early fall) are amazing.


    Sent from my iPhone using Tapatalk

  4. #19
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    Quote Originally Posted by mpally View Post
    He must be an employee of the real estate agency. Unreimbursed employee business expenses are no longer deductible so I assume he has expenses that are not reimbursed by his employer and can no longer deduct them personally. With a little bit of planning, this can be easily avoidable. I would highly recommend that he speaks to a tax adviser now.

    Just about all of our clients will see a reduction in their income. The only group that is getting hit are professional athletes. They will see their tax liabilities increase significantly under the new laws.
    Yes, he is an employee of the agency and said the elimination of the deductions will hit him for about 4 to 6K.....How can it be avoided?
    I mentioned I thought there was a way to set himself up as a business to take advantage of that lower rate - is that the case?

  5. #20
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    Quote Originally Posted by boater34 View Post
    Yes, he is an employee of the agency and said the elimination of the deductions will hit him for about 4 to 6K.....How can it be avoided?
    I mentioned I thought there was a way to set himself up as a business to take advantage of that lower rate - is that the case?

    He's probably itemizing under unreimbursed business his car miles, cell phone, home office, internet etc. I'm not a tax guy but it may hurt him because without this the standard deduction may be more
    Live, Love, & Laugh

  6. #21
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    Quote Originally Posted by boater34 View Post
    Yes, he is an employee of the agency and said the elimination of the deductions will hit him for about 4 to 6K.....How can it be avoided?
    I mentioned I thought there was a way to set himself up as a business to take advantage of that lower rate - is that the case?
    Here are two possible approaches. One would be to switch to an independent contractor of the agency instead of an employee. He would then report his income and expenses on Schedule C. He will be hit with self-employment tax and the agency would not have to pay payroll tax on him as an employee so he would want to try to negotiate higher compensation to offset the self-employment tax. Benefits could be a hurdle here as he would not get any health insurance, etc. as an independent contractor.

    The other option would be to see if the agency would pay for his expenses - charge him for supplies, give him a car allowance, etc. - and reduce his take home pay by the amount of his expenses. These expenses would be deductible by the agency.

  7. #22
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    Quote Originally Posted by mpally View Post
    Here are two possible approaches. One would be to switch to an independent contractor of the agency instead of an employee. He would then report his income and expenses on Schedule C. He will be hit with self-employment tax and the agency would not have to pay payroll tax on him as an employee so he would want to try to negotiate higher compensation to offset the self-employment tax. Benefits could be a hurdle here as he would not get any health insurance, etc. as an independent contractor.

    The other option would be to see if the agency would pay for his expenses - charge him for supplies, give him a car allowance, etc. - and reduce his take home pay by the amount of his expenses. These expenses would be deductible by the agency.
    I think I might have misunderstood what "employee of the agency" means. He does not get health insurance from the agency and I think pays all of his FICA taxes, etc. So from that perspective he must be a contractor - correct? If so how does that change things?

  8. #23
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    Quote Originally Posted by boater34 View Post
    I think I might have misunderstood what "employee of the agency" means. He does not get health insurance from the agency and I think pays all of his FICA taxes, etc. So from that perspective he must be a contractor - correct? If so how does that change things?
    Correct, it sounds like he's an independent contractor which is very common in that industry. If that's the case, very little change occurred with the tax reform. Much of the meals and entertainment is no longer deductible, however, most of his other business related expenses are still deductible.

  9. #24
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    Quote Originally Posted by Griff View Post
    I'm really wondering how its all going shake out at tax time.
    I have itemized for the last 29 years. With the new higher standard deduction, that will no longer be the case.
    I do know that about 25% less fed tax was being taken out of my checks. Just in case, I changed from Married 2 to Married 0.
    Just took a look at my taxes and I will be one that no longer itemizes. With cap of 10k on itemized taxes and removal of business expenses the only ones that will itemize will be ones with large interest paid or big charity givers. (Unless you file as single it could make more sense in more cases to itemize) Maybe a few that have a theft casualty loss or large natural disaster that would itemize that one year of loss
    Griff you were smart changing federal to 0. I didnít do that and my employer took out a lot less. (Either pay through the year or at the end you just donít want to be surprised ). My tax liability went up about 2k with not being able to itemize. In my case the lower tax percentage was offset by the loss of the exemptions of a family of 4. The positive was I could do my taxes in 30 min vs the hours it previously took along with keeping a paper trail of expenses that will no longer be needed.

    I do see charities getting negatively impacted by the changes.
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  10. #25
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    I just finished my taxes the other day. My Fed tax liability for the year went down about 10% from the prior year with similar income level.
    I'm glad I changed to married 0. My actual refund amount went down about 20%.

  11. #26
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    It doesn't take long for the deductions to add up. I itemized last year, but couldn't this year. State sales tax, personal property tax, property tax, state income tax, mortgage interest, and any contributions add up. My amount in these items exceeded the standard deduction, and I don't have much of in interest mortgage. If you are like me and work for an employer and have personal expenses that you use to deduct, that is now gone. I could see where he would get hit. I did.

  12. #27
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    Quote Originally Posted by Jksvet View Post
    It doesn't take long for the deductions to add up. I itemized last year, but couldn't this year. State sales tax, personal property tax, property tax, state income tax, mortgage interest, and any contributions add up. My amount in these items exceeded the standard deduction, and I don't have much of in interest mortgage. If you are like me and work for an employer and have personal expenses that you use to deduct, that is now gone. I could see where he would get hit. I did.
    Your schedule A taxes section is capped at 10k, interest is unlimited, and charity is unlimited. So between the two you need more than 14k to be above the 24k standard deduction. I read the IRS said thw percent that itemized was 30% of all filers and they expected that to be reduced to around 6%.
    Live, Love, & Laugh

  13. #28
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    I'm still waiting on the post with all the loop-holes in it.....

  14. #29
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    I am guessing that will be next year. the first year people try and figure out what the changes are, year 2 is creating the loopholes, year 3& 4 are litigating and getting court precedence.

    From then on, working the loopholes and creating the strategies to get the most out of your personal situation.

    I remember very clearly the last LARGE tax change during the Reagan years. There was seminars, mailings, and projects you could join to learn the best way to work the tax laws to your benefit.

    Changes may not work for everyone. That being said; many times these same people take the most advantage down the road because they become motivated to learn the new strategies!
    B&B
    20.5 mm LOTO

  15. #30
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    I noticed the same as Griff, 20-30% decrease in refund. Home office deduction for sales role, rental property, childcare, IL crazy real estate tax, etc

    Did have me thinking about another post regarding boat financing. A lot mentioned home equity loans, which no longer would be deductible for that purchase. Are regular boat loans interest through credit unions and such still deductible as a “second home” if has galley and bath??

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