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The business is 3 years old and last year was the first year to report a profit...trust me, he is pretty good. I've got all of my expenses covered in there. Its not an issue of my taxes being done wrong, I'm paying what I legally owe. And trust me, its a pretty small business...just a website really. Generates enough extra cash each month to make a difference for me, but not a huge difference.
If your business turned no profit for the first two years then you should be able to do a carry-over loss. I'm sorry, but unless you suddenly started making money hand-over-fist, you need a new accountant.
Driller isn't exempted.
Driller just chooses to operate in (quite legal and rather common) ways that avoid the PITA record keeping
required of businesses that do collect sales tax and took this opportunity to smack you o the nose like a bad pup.
Moral of the story? One system is just about as bad as another.
The real problem is whether the method will transparent and equitable.
I don't hold out much faith that (given the chance) Congress wouldn't manage to Eff this up too.
If not immediately then in short order after the lobbyists get a line on it.
hth
Right church...wrong pew.
The sales tax on my supplies is paid when I buy them.
I pass the cost on in my price but, it will not show as an added fee per say.
Drilling water wells in Michigan is in the same classification as agriculture.
If your business turned no profit for the first two years then you should be able to do a carry-over loss. I'm sorry, but unless you suddenly started making money hand-over-fist, you need a new accountant.
You are correct.
I will never make a profit because I constantly up grade equipment.
Which is a better system in collecting taxes? Which is more fair?
FLAT TAX FOR EVERYONE. That way, everyone, regardless of income, has some "skin in the game" and will be more concerned about wild spending and tax increases. For those who do not pay taxes, they could care less about spending and tax increases, as these issues do not cost them anything.
Right church...wrong pew.
The sales tax on my supplies is paid when I buy them.
I pass the cost on in my price but, it will not show as an added fee per say.
This is what was referred to as "a quite legal and rather common" practice.
You are FAR from alone in doing this.
FLAT TAX FOR EVERYONE. That way, everyone, regardless of income, has some "skin in the game" and will be more concerned about wild spending and tax increases.
The percentage of each person's skin that's in the game is the question.
Which is why flat tax (alone) or sales tax (alone) simply won't work.
Neither. Abolish the 16th amendment and just have
a national sales tax - which is fair for EVERYONE -
rich or poor - legal or not.
Quote:
Originally Posted by knowledgeiskey
Which is a better system in collecting taxes? Which is more fair?
None of the above, the worst being a sales tax (a value added tax is another subject and its fairness or unfairness is dependent the details). For the poor and middle classes a higher percentage of disposable income has to be spent on basic necessities, thus they would pay a higher percentage of income in the form of taxes. As for a flat tax... well if one does away with all tax deductions and income which is presently considered non-taxable income it could theoretically be quite fair, but at what cost?
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