New Trump Tax Plan Passes- Good For LLc’s.

 
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Old 12-24-2017, 06:40 PM   #81
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Re: New Trump Tax Plan Passes- Good For LLc’s.


I think op and the rest of posters have missed a key detail.

Yes there is a 20% deduction for pass through entities, which most home service businesses and contractors are. However...

The bill excludes “any trade or business where the principal asset of such trade or business is the reputation or skill of one or more of its employees [or owners].” — if their income is over 157k single 314 for married . Literally, that excludes companies like ours.

I’d expect many cpa’s will include the deduction (many ignorance, some intent), but if audited you’re on the hook for liability due plus interest and penalties. The cpa will just say “oh I thought you were manufacturing”. CPAs have very little liability when it comes to doing your taxes.
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Old 12-24-2017, 08:37 PM   #82
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Re: New Trump Tax Plan Passes- Good For LLc’s.


Sources of CPAs' liability. In the United States, CPAs have common law liability and statutory law liability. Common law liability arises from negligence, breach of contract, and fraud. Statutory law liability is the obligation that comes from a certain statute or a law, which is applied, to society.


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Old 12-24-2017, 10:40 PM   #83
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Re: New Trump Tax Plan Passes- Good For LLc’s.


Quote:
Originally Posted by calmod View Post
what i said : states with high income taxes all pay in more to the federal government than they get back. google donor states. before we start talking about adding to another states burden you should realize where the burden actually is...
https://taxfoundation.org/federal-ta...ditures-state/
this is from 2005 but the numbers are the same more or less in 2017. i'm out of town and can't post links from my laptop i've been incorporated for 15 years and have a masters degree in accounting and had never heard of the 199 deduction so gotta thank that poster. 179 yes but 199 no.
the poster who linked the NY post article may as well have linked the Enquirer.
I never mentioned you. But you are talking totals, I'm simply talking about the state tax deduction. In regards to that those that get to take the deduction roar that don't subsidize those that do. Anything else is another discussion.

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Old 12-26-2017, 06:49 PM   #84
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Re: New Trump Tax Plan Passes- Good For LLc’s.


I tried to keep my eagerness tempered, but I have to say that I am pretty excited for our future.
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Old 12-26-2017, 07:16 PM   #85
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Re: New Trump Tax Plan Passes- Good For LLc’s.


Without putting these in any righteous perspective, I heard a few things over the holiday.

An emergency vet I know sees that he will lose his ability to deduct non-reimbursable business expenses, which are substantial. He's an FTE and not 1099'd, so he'll now be fully on the hook for his malpractice insurance, trade pubs, related licenses, cell phone (emergency calls), etc., etc. Not sure about his driving expenses..forgot to ask. (I don't know how true this is, but anyway..)

Another couple will take a hit on their new home cost, since they used a HELOC. That interest deduction goes away, and a refi is going to be a problem for them at the moment.

My folks are at 13k on their real estate taxes (2 properties, one in PA, on at the Jersey shore), so they'll take a hit there. They are pro-Trump folks that are just mumbling a little bit about that, but they'll suck it up.
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Old 12-26-2017, 07:41 PM   #86
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Re: New Trump Tax Plan Passes- Good For LLc’s.


Quote:
Originally Posted by MarkJames View Post
Without putting these in any righteous perspective, I heard a few things over the holiday.

An emergency vet I know sees that he will lose his ability to deduct non-reimbursable business expenses, which are substantial. He's an FTE and not 1099'd, so he'll now be fully on the hook for his malpractice insurance, trade pubs, related licenses, cell phone (emergency calls), etc., etc. Not sure about his driving expenses..forgot to ask. (I don't know how true this is, but anyway..)

Another couple will take a hit on their new home cost, since they used a HELOC. That interest deduction goes away, and a refi is going to be a problem for them at the moment.

My folks are at 13k on their real estate taxes (2 properties, one in PA, on at the Jersey shore), so they'll take a hit there. They are pro-Trump folks that are just mumbling a little bit about that, but they'll suck it up.


Your folks might take a hit cause they can’t itemize but with the higher standard deduction they might still be money ahead by the standard deduction

My dad figured it out as well because for 2017 it is more beneficial to him to itemize however for next year with a higher standard deduction he will probably go that route because that will save him the most money

That will probably be my scenario next year as well because currently itemizing saves me just a little bit more than the standard deduction.

I am trying to wait until all of the details are worked out before I give a thumbs up or thumbs down to the new tax plan since there is a lot of speculation going on


Neither one of us pay anywhere near $10,000 in property tax so that’s not an issue for us But I can see that being a game changer for some people

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Old 12-26-2017, 07:55 PM   #87
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Re: New Trump Tax Plan Passes- Good For LLc’s.


Quote:
Originally Posted by MarkJames View Post
Without putting these in any righteous perspective, I heard a few things over the holiday.

An emergency vet I know sees that he will lose his ability to deduct non-reimbursable business expenses, which are substantial. He's an FTE and not 1099'd, so he'll now be fully on the hook for his malpractice insurance, trade pubs, related licenses, cell phone (emergency calls), etc., etc. Not sure about his driving expenses..forgot to ask. (I don't know how true this is, but anyway..)

Another couple will take a hit on their new home cost, since they used a HELOC. That interest deduction goes away, and a refi is going to be a problem for them at the moment.

My folks are at 13k on their real estate taxes (2 properties, one in PA, on at the Jersey shore), so they'll take a hit there. They are pro-Trump folks that are just mumbling a little bit about that, but they'll suck it up.
Great story--now go tell them they're wrong.

https://www.inc.com/erik-sherman/sto...-expenses.html

Unless your folks ran the numbers, they don't know how it affects them.

Tom
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Old 12-26-2017, 08:51 PM   #88
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Re: New Trump Tax Plan Passes- Good For LLc’s.


Quote:
Originally Posted by MarkJames View Post
Without putting these in any righteous perspective, I heard a few things over the holiday.

An emergency vet I know sees that he will lose his ability to deduct non-reimbursable business expenses, which are substantial. He's an FTE and not 1099'd, so he'll now be fully on the hook for his malpractice insurance, trade pubs, related licenses, cell phone (emergency calls), etc., etc. Not sure about his driving expenses..forgot to ask. (I don't know how true this is, but anyway..)

Another couple will take a hit on their new home cost, since they used a HELOC. That interest deduction goes away, and a refi is going to be a problem for them at the moment.

My folks are at 13k on their real estate taxes (2 properties, one in PA, on at the Jersey shore), so they'll take a hit there. They are pro-Trump folks that are just mumbling a little bit about that, but they'll suck it up.
Must suck to own two properties.

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Old 12-28-2017, 05:21 PM   #89
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Re: New Trump Tax Plan Passes- Good For LLc’s.


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Originally Posted by TNTSERVICES View Post
It's never a bad move to give me back more of my money, period.
Pretty much sums it up...

But keep in mind ANYONE can choose to give more money to pay down the debt, including the billionaires who say they are not taxed enough...
Gifts to Reduce the Public Debt ... https://www.pay.gov/public/form/start/23779454/

Gift Contributions to Reduce Debt Held by the Public... https://www.treasurydirect.gov/govt/.../gift/gift.htm
Now the question is... if they're serious, why don't they?...

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Old 12-28-2017, 05:28 PM   #90
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Re: New Trump Tax Plan Passes- Good For LLc’s.


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Pretty much sums it up...

But keep in mind ANYONE can choose to give more money to pay down the debt, including the billionaires who say they are not taxed enough...
Gifts to Reduce the Public Debt ... https://www.pay.gov/public/form/start/23779454/

Gift Contributions to Reduce Debt Held by the Public... https://www.treasurydirect.gov/govt/.../gift/gift.htm
Now the question is... why don't they?...
Weird they never do.

But I read somewhere that even if you taxed the top 1% 100% it wouldn't come close to balancing the budget.
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Old 12-28-2017, 05:40 PM   #91
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Re: New Trump Tax Plan Passes- Good For LLc’s.


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Weird they never do.

But I read somewhere that even if you taxed the top 1% 100% it wouldn't come close to balancing the budget.
This is a few years old but is worth the watch, especially for those that want the rich to pay "their fair share".


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