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I could rob a bank too but it's not something within the law. I can't lease a Ferrari, write it off because I also have a llc with a retal property
Quote:
Originally Posted by BarLatGo
Don't know about a Ferrari, but you can definitely lease a Lexus, Mercedes, BMW. But all of these guys have been buying big, shiny 4WD pickup trucks for "rental maintenance", since Section 179 of the tax code said they could depreciate those 100% (I think they just closed that loophole, about 5 years late.)
Only to the extent there is a business purpose. The people you know may very well be expensing 100% of the lease, but they are only legally allowed to write off the business portion of the commuting expenses. Getting audited is another matter altogether, but they can't legally expense their personal expenses such as commuting to the grocery store, driving to the bar, groceries, or buying a random person a drink. Buying a person a drink as they are talking about business can be expensed as entertainment, but only a portion and only a certain amount.
Quote:
Originally Posted by SarasotaBound1
Hold on a second...
My argument was not about average, the argument was about the fact that what you pay into social security and Medicare won't be worth much by the time you retire. To the point that what you paid in will be gone immediately.
The average income was 6500 in 1970 with about 100 going to Medicare tax. Those folks are retiring today in a world were any medicine costs more than the whole 1970 pay in.
I know that the poverty line is 23000, but let's be honest here. If you have a family and can't pull in over 35000, you are poor. Heck, I make much more than that and I'm poor. So no, there aren't more rich and middle class people than poor. Unless everyone is making over 80k now days.
This is your post I was responding to. The person you were responding to was saying that poor people die younger.
Quote:
Originally Posted by SarasotaBound1
Than explain how the average lifespan of Americans is 80 years old, 16 full years past retirement.
Only to the extent there is a business purpose. The people you know may very well be expensing 100% of the lease, but they are only legally allowed to write off the business portion of the commuting expenses. Getting audited is another matter altogether, but they can't legally expense their personal expenses such as commuting to the grocery store, driving to the bar, groceries, or buying a random person a drink. Buying a person a drink as they are talking about business can be expensed as entertainment, but only a portion and only a certain amount.
This is your post I was responding to. The person you were responding to was saying that poor people die younger.
Correct.
And the poor, those making less than 50k, don't die young. You don't have to live under a bridge to be poor. An average home costs 200k and carries a an 1100 payment. Try paying that, property taxes, utilities, a car, a phone, internet, food, credit cards with 3800 a month check.
Most families live paycheck to paycheck. How good is making 80k if losing your job you are done.
The majority of people in the U.S. are poor. The minority are upper middle income and rich and cannot drive the average.
Last edited by SarasotaBound1; 01-17-2015 at 03:58 PM..
Only to the extent there is a business purpose. The people you know may very well be expensing 100% of the lease, but they are only legally allowed to write off the business portion of the commuting expenses. Getting audited is another matter altogether, but they can't legally expense their personal expenses such as commuting to the grocery store, driving to the bar, groceries, or buying a random person a drink. Buying a person a drink as they are talking about business can be expensed as entertainment, but only a portion and only a certain amount.
I don't know what portion of the leases are being expensed, I just know they're leasing them. The trucks are being bought outright, or were. With the Section 179 changes, they may actually have to change strategies on those going forward.
With the odds of being audited so minuscule these days (around 0.5% for a pass through S corp) I think they'll keep taking their chances. And if they do get audited? The worst thing that will happen is they'll have to pay the penalty plus whatever tax credits they took that they didn't qualify for.
And the poor, those making less than 50k, don't die young. You don't have to live under a bridge to be poor. An average home costs 200k and carries a an 1100 payment. Try paying that, utilities, a car, a phone, internet, food, credit cards with 3800 a month.
They die younger than their wealthier counterparts. About 10 years younger IIRC, though that varies by race and geographic location. Poor people out in W.Va have a lower life expectancy similar to people in Haiti and about 20 years lower than their affluent W.Va counterparts.
I'm curious, do you actually have experience being a millionaire and owning an LLC? You seem very knowledgeable about the subject.
My line of work has allowed me to work with thousands of millionaires so I do have an idea even though I'm not at the million dollar mark just yet myself.
They die younger than their wealthier counterparts. About 10 years younger IIRC, though that varies by race and geographic location. Poor people out in W.Va have a lower life expectancy similar to people in Haiti and about 20 years lower than their affluent W.Va counterparts.
So you are telling me that those making 50k and living paycheck to paycheck are rich?
Yes, folks living under the bridge are poor and die younger. That is the poor you are referring to. But the average salary is 50k in the U.S. and most of them live paycheck to paycheck. Those people are poor, retire poor, and live 16 years on average.
Again, the poor are the majority and drive the average.
I don't know what portion of the leases are being expensed, I just know they're leasing them. The trucks are being bought outright, or were. With the Section 179 changes, they may actually have to change strategies on those going forward.
With the odds of being audited so minuscule these days (around 0.5% for a pass through S corp) I think they'll keep taking their chances. And if they do get audited? The worst thing that will happen is they'll have to pay the penalty plus whatever tax credits they took that they didn't qualify for.
Penalty, tax owed, plus daily compounded interest. My point was to illustrate the illegality that Lowexpectations was referring to. The fact that someone might not get caught doesn't change the legal status.
My line of work has allowed me to work with thousands of millionaires so I do have an idea even though I'm not at the million dollar mark just yet myself.
The top 10 percent of income earners paid 68 percent of all federal income taxes in 2011 while earning 45 percent of all income. The bottom 50 percent paid 3 percent of income taxes but earned 12 percent of income.
State and local taxes can be progressive or regressive depending upon location.
The bottom line is that government should be smaller and more efficient requiring less from the citizens.
This is correct. Gov't should downsize, do away with non-accountability and become more modern.
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