JohnR

Hell no, you think I'm nuts? I was sent this website in my email. I have no idea why the IRS has not jumped on them. Maybe they are just biding their time. A while ago here in the Pacific Northwest there was a limited partnership scheme in shorthorn cattle. The IRS waited 10 years then whammo, shut it down and ruined a crapload of tax cheats. I had almost got into it. Whew!

Phantom Cows

excreationist

Does anyone in this thread still think that national sales tax is a good idea? If not, then that line of discussion is over really.

Loren Pechtel

Originally posted by excreationist
Loren Pechtel:
What do you think of the different tax deductions there are, like Negative Gearing?
"...It is through these available tax incentives that investors are able to purchase property at very little cost to themselves and in many cases at virtually no cost to themselves.

Simply put: the tax man and the rental income pays for your investment property!!"

Yeah, government likes to use tax as an incentive/punishment system. However, when you try to MIX that with it's use as a revenue system you get a total mess.

If sold illegal, the shop would get $8 profit (assuming 5% discount is enough to sell things) rather than $5 profit, which is a 60% increase in profit. If the penalty for not paying GST was huge, it would be better for businesses, especially larger ones, to do things legitimately.

Actually, the size of the punishment isn't nearly as much of an issue as the chance of punishment. Consider this case under a VAT system: The store is issued more 1099's than normal for it's reported revenue. Big tipoff to the taxman that something's wrong.

Loren Pechtel

The website is legal. Following it's advice isn't.

Soul Invictus

I've had problems accessing his site, however I did read a few things. I personally tried talking to HR at my job about increasing my deductions (to get more money upfront) and they gave me a " the gov't will allow for me to claim X deductions but basically I couldn't assert over what the W4 form would figure. I'm like BS! To the best of your knowledge, are his claims valid and supported (such as that "income" is defined as corporate income, thus allowing exclusion) or are they faulty at best. I shall check out more on this guy, because I've been dealing with trying to lessen my tax burden.

Soul Invictus

This link is actually for everyone. Maybe you've heard of Bill Cooper, maybe not...check this link out and let me know what you think. He was a former naval officer. He had an interesting book entitled "Behold a Pale Horse" Read it before? Anyways here's the link. I think there's something in here challenging the validity of the IRS.

http://www.williamcooper.com/biggestheist.html

Tell me what you think

Loren Pechtel

I would *NOT* recommend listening to the guy. As I said, he's had various stays at the greybar hotel. Is that where you want to be?

As for increasing the number of deductions on the W4, you can. It gives you more money up front but if they aren't justified you get a big tax bill in april and possibly underpayment penalties. Some years ago we had an employee in the accountant's office actually crying because he had done that. He bought a house. Now, "everyone" knows that when you buy a house you have more deductions and pay less tax. (Never mind that the average person gets little from this and many get nothing at all.) He increased his exemptions from 1 to 3. April comes around--and he owes the IRS several hundered dollars. Money he doesn't have. He was actually threatening to sue us because supposedly we had misreported his income to the IRS, otherwise there would be no way he would have that tax bill. I was worried that he was actually going to attack the accountant!

Soul Invictus

I figured you could increase the number of deductions on the W-4, I was just unsure how. On the current 2002 W-4 form I'm not sure where I could put it. The reason I want to raise the bar, is that since I have my prior year's tax returns and I know how much I made the last couple of years..(I'm still in the same tax bracket) I can reasonably estimate close to how much I'll pay out in taxes this year ( or so I think) With that, I'd rather get more money upfront since it's worth more to me now then on April 15th. (time value of money blah blah blah) I could care less about the tax return on any excessive taxes I've paid. I'll take it now.

What do you think about my plan?

Soul Invictus

Also, I need to make sure we're talking about the right figure...the allowances/deductions/exemptions. I always get the terms confused.

Also again, why would my HR dept be nonresponsive about my question of "how would I increase my deductions/allowances/exemptions on the W-4 (whichever one it may be?) They did say that over a certain amount, they have to inform the IRS, which doesn't make me any difference. They told me that they prefer to have you pay according to what you're allowing by them (how condescending) rather than have you claim more than your expected total (did I mention I'm single with no kids...they ran this down on me since I have no spouse). I translate this into they don't want me to do what I intend!

Loren Pechtel

If you are getting big refunds, increase your deductions. Simply fill out a new W-4. If you're not, it's a bad idea--come Apr 15 you'll pay it back *with interest*.

The W-4's of my wife and I have only one thing on them that's reality and that's because the IRS put a box for it (~"Married but withold at the single rate"). It's what makes the numbers come out right--the system doesn't work right for dual-earner couples.

Note that some HR departments give you a copy of the front of the W-4 rather than the whole thing. There's a whole page of stuff on the back for figuring out what to do with unusual situations.