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Welcome to Fairfax Underground, a project site designed to improve communication among residents of Fairfax County, VA. Feel free to post anything Northern Virginia residents would find interesting.
Welcome to Fairfax Underground, a project site designed to improve communication among residents of Fairfax County, VA. Feel free to post anything Northern Virginia residents would find interesting.
Re: Annual income of average small business?
Posted by:
Thanks
()
Date: September 18, 2010 10:38PM
Voter____ Wrote:
-------------------------------------------------------
> No, that isn't true.
>
> http://jacksonville.com/news/metro/2010-06-20/stor
> y/health-care-benefits-not-taxable-are-reportable
Thanks. Not sure of what qualifies as Cadillac policies. My concern is small business pays much more for insurance per person than government or unions and I didn't want our employees to be penalized.
Appreicate the references. I have been searching for a clear understanding.
-------------------------------------------------------
> No, that isn't true.
>
> http://jacksonville.com/news/metro/2010-06-20/stor
> y/health-care-benefits-not-taxable-are-reportable
Thanks. Not sure of what qualifies as Cadillac policies. My concern is small business pays much more for insurance per person than government or unions and I didn't want our employees to be penalized.
Appreicate the references. I have been searching for a clear understanding.
Re: Annual income of average small business?
Posted by:
Voter____
()
Date: September 19, 2010 10:45AM
Here is another story from yesterday's Times that shows the impact of proposed tax increases on small businesses:
Internal Revenue Service statistics indicate that only 3 percent of small businesses would be subject to the higher tax, and many studies of previous tax increases suggest that it would have minimal impact on hiring.
According to the Joint Committee on Taxation, 97 percent of all businesses owners do not earn enough to be subject to the higher rates, which would be levied on income of over $200,000 for individuals and $250,000 for families.
Even among the 750,000 businesses that would be subjected to the higher rates in 2011, many are sole proprietors — a classification so amorphous it can include everyone from corporate executives who earn income on rental property to entertainers, hedge fund managers and investment bankers. Because 80 percent of America’s 32 million businesses are sole proprietorships, 90 percent of the tax cut would be derived from businesses without employees.
http://www.nytimes.com/2010/09/18/business/smallbusiness/18smallbiz.html?_r=1&src=me&ref=business
Internal Revenue Service statistics indicate that only 3 percent of small businesses would be subject to the higher tax, and many studies of previous tax increases suggest that it would have minimal impact on hiring.
According to the Joint Committee on Taxation, 97 percent of all businesses owners do not earn enough to be subject to the higher rates, which would be levied on income of over $200,000 for individuals and $250,000 for families.
Even among the 750,000 businesses that would be subjected to the higher rates in 2011, many are sole proprietors — a classification so amorphous it can include everyone from corporate executives who earn income on rental property to entertainers, hedge fund managers and investment bankers. Because 80 percent of America’s 32 million businesses are sole proprietorships, 90 percent of the tax cut would be derived from businesses without employees.
http://www.nytimes.com/2010/09/18/business/smallbusiness/18smallbiz.html?_r=1&src=me&ref=business
Re: Annual income of average small business?
Posted by:
ACCOUNTING 101
()
Date: February 18, 2011 11:24PM
You shouldn't need to watch any videos or read any article to know that anytime anyone discusses how much you will pay in taxes they are ALWAYS referring to NET income or profit not GROSS income or profit. You are never taxed on the money you spent in order to make the profit if that was the case everyone should be pissed that they are getting taxed twice because you already pay taxes for all your business expenses at the time you incur them!!!!!!!!! and unless you have a really horrible accountant you should be able to keep your net below 250k so maybe you should pay a little extra for a better accountant that can tell you what you can write off or maybe instead of wasting time writing on here over and over you can do some research online on how to lower your taxable income with deductions!
Re: Annual income of average small business?
Posted by:
WashingTone-Locian
()
Date: February 19, 2011 09:10AM
ACCOUNTING 101 Wrote:
-------------------------------------------------------
> You shouldn't need to watch any videos or read any
> article to know that anytime anyone discusses how
> much you will pay in taxes they are ALWAYS
> referring to NET income or profit not GROSS income
> or profit. You are never taxed on the money you
> spent in order to make the profit if that was the
> case everyone should be pissed that they are
> getting taxed twice because you already pay taxes
> for all your business expenses at the time you
> incur them!!!!!!!!! and unless you have a really
> horrible accountant you should be able to keep
> your net below 250k so maybe you should pay a
> little extra for a better accountant that can tell
> you what you can write off or maybe instead of
> wasting time writing on here over and over you can
> do some research online on how to lower your
> taxable income with deductions!
If you are making more than $250K, there are only so many deductions you can take that are actually beneficial for you. Anything you try to take out of the business for income becomes subject to AMT after a certain level. This means certain exemptions stop being beneficial once you exceed AMT. Also, if you have employees, ERISA starts to tie your hands on retirement contributions because you have to increase the portion you provide to employees. Small businesses are at a huge disadvantage compared to large corporations that can use stock options for compensation.
---------------------------------------------------------------------------------
http://bible.cc/1_corinthians/13-11.htm
-------------------------------------------------------
> You shouldn't need to watch any videos or read any
> article to know that anytime anyone discusses how
> much you will pay in taxes they are ALWAYS
> referring to NET income or profit not GROSS income
> or profit. You are never taxed on the money you
> spent in order to make the profit if that was the
> case everyone should be pissed that they are
> getting taxed twice because you already pay taxes
> for all your business expenses at the time you
> incur them!!!!!!!!! and unless you have a really
> horrible accountant you should be able to keep
> your net below 250k so maybe you should pay a
> little extra for a better accountant that can tell
> you what you can write off or maybe instead of
> wasting time writing on here over and over you can
> do some research online on how to lower your
> taxable income with deductions!
If you are making more than $250K, there are only so many deductions you can take that are actually beneficial for you. Anything you try to take out of the business for income becomes subject to AMT after a certain level. This means certain exemptions stop being beneficial once you exceed AMT. Also, if you have employees, ERISA starts to tie your hands on retirement contributions because you have to increase the portion you provide to employees. Small businesses are at a huge disadvantage compared to large corporations that can use stock options for compensation.
---------------------------------------------------------------------------------
http://bible.cc/1_corinthians/13-11.htm
Re: Annual income of average small business?
Posted by:
mcsmack
()
Date: February 19, 2011 10:07AM
WashingTone-Locian Wrote:
-------------------------------------------------------
> ACCOUNTING 101 Wrote:
> --------------------------------------------------
> -----
> > You shouldn't need to watch any videos or read
> any
> > article to know that anytime anyone discusses
> how
> > much you will pay in taxes they are ALWAYS
> > referring to NET income or profit not GROSS
> income
> > or profit. You are never taxed on the money you
> > spent in order to make the profit if that was
> the
> > case everyone should be pissed that they are
> > getting taxed twice because you already pay
> taxes
> > for all your business expenses at the time you
> > incur them!!!!!!!!! and unless you have a
> really
> > horrible accountant you should be able to keep
> > your net below 250k so maybe you should pay a
> > little extra for a better accountant that can
> tell
> > you what you can write off or maybe instead of
> > wasting time writing on here over and over you
> can
> > do some research online on how to lower your
> > taxable income with deductions!
>
>
> If you are making more than $250K, there are only
> so many deductions you can take that are actually
> beneficial for you. Anything you try to take out
> of the business for income becomes subject to AMT
> after a certain level. This means certain
> exemptions stop being beneficial once you exceed
> AMT. Also, if you have employees, ERISA starts to
> tie your hands on retirement contributions because
> you have to increase the portion you provide to
> employees. Small businesses are at a huge
> disadvantage compared to large corporations that
> can use stock options for compensation.
Dead on with the facts here.
The problem with increasing taxes on income over 250K is it takes a substantial amount of money out of the private sector where it is more wisely spent and invested and transfers it to the federal treasury where it seems to vaporize.
The 250K margin was set specifically to appeal to people that don't make 250K per year.Human nature. Simple Joe thinks "Well I sure as hell don't 250K what do I care"? Our economy gets more bang for the buck if the dollar is left in the private sector to be spent or invested forgoing tax rate hikes.
Every year in CA for example the state is losing millions of dollars of revenue on yachts that are delivered to U.S. owners in Mexico instead of San Diego or wherever just to avoid all the fees and taxes. If CA would lower there tax rates just a little they would bring in substantially more revenue to the state.
I have a friend who sold his families horse ranch in southwestern KS for millions of dollars and bought a yacht to pursue his dreams of sailing. He and his family members rotated living in Mexico for like 90 days or something to comply with CA's tax laws just in case they were audited and of course they were. Even including his expenses for having to stay in Mexico he still saved in excess of $80,000.00.
You bet there will be accountants in high gear beating down numbers everywhere to hide revenues. This would show up in suppressed economic data and lower federal receipts than otherwise would have been realized. It (tax rate increase on 250K+) most likely is a moot issue however as I doubt it would pass congress at this point or in the foreseeable future. Good Day WTL
-------------------------------------------------------
> ACCOUNTING 101 Wrote:
> --------------------------------------------------
> -----
> > You shouldn't need to watch any videos or read
> any
> > article to know that anytime anyone discusses
> how
> > much you will pay in taxes they are ALWAYS
> > referring to NET income or profit not GROSS
> income
> > or profit. You are never taxed on the money you
> > spent in order to make the profit if that was
> the
> > case everyone should be pissed that they are
> > getting taxed twice because you already pay
> taxes
> > for all your business expenses at the time you
> > incur them!!!!!!!!! and unless you have a
> really
> > horrible accountant you should be able to keep
> > your net below 250k so maybe you should pay a
> > little extra for a better accountant that can
> tell
> > you what you can write off or maybe instead of
> > wasting time writing on here over and over you
> can
> > do some research online on how to lower your
> > taxable income with deductions!
>
>
> If you are making more than $250K, there are only
> so many deductions you can take that are actually
> beneficial for you. Anything you try to take out
> of the business for income becomes subject to AMT
> after a certain level. This means certain
> exemptions stop being beneficial once you exceed
> AMT. Also, if you have employees, ERISA starts to
> tie your hands on retirement contributions because
> you have to increase the portion you provide to
> employees. Small businesses are at a huge
> disadvantage compared to large corporations that
> can use stock options for compensation.
Dead on with the facts here.
The problem with increasing taxes on income over 250K is it takes a substantial amount of money out of the private sector where it is more wisely spent and invested and transfers it to the federal treasury where it seems to vaporize.
The 250K margin was set specifically to appeal to people that don't make 250K per year.Human nature. Simple Joe thinks "Well I sure as hell don't 250K what do I care"? Our economy gets more bang for the buck if the dollar is left in the private sector to be spent or invested forgoing tax rate hikes.
Every year in CA for example the state is losing millions of dollars of revenue on yachts that are delivered to U.S. owners in Mexico instead of San Diego or wherever just to avoid all the fees and taxes. If CA would lower there tax rates just a little they would bring in substantially more revenue to the state.
I have a friend who sold his families horse ranch in southwestern KS for millions of dollars and bought a yacht to pursue his dreams of sailing. He and his family members rotated living in Mexico for like 90 days or something to comply with CA's tax laws just in case they were audited and of course they were. Even including his expenses for having to stay in Mexico he still saved in excess of $80,000.00.
You bet there will be accountants in high gear beating down numbers everywhere to hide revenues. This would show up in suppressed economic data and lower federal receipts than otherwise would have been realized. It (tax rate increase on 250K+) most likely is a moot issue however as I doubt it would pass congress at this point or in the foreseeable future. Good Day WTL
Re: Annual income of average small business?
Posted by:
mcsmack
()
Date: February 19, 2011 10:12AM
WashingTone-Locian Wrote:
-------------------------------------------------------
> ACCOUNTING 101 Wrote:
> --------------------------------------------------
> -----
> > You shouldn't need to watch any videos or read
> any
> > article to know that anytime anyone discusses
> how
> > much you will pay in taxes they are ALWAYS
> > referring to NET income or profit not GROSS
> income
> > or profit. You are never taxed on the money you
> > spent in order to make the profit if that was
> the
> > case everyone should be pissed that they are
> > getting taxed twice because you already pay
> taxes
> > for all your business expenses at the time you
> > incur them!!!!!!!!! and unless you have a
> really
> > horrible accountant you should be able to keep
> > your net below 250k so maybe you should pay a
> > little extra for a better accountant that can
> tell
> > you what you can write off or maybe instead of
> > wasting time writing on here over and over you
> can
> > do some research online on how to lower your
> > taxable income with deductions!
>
>
> If you are making more than $250K, there are only
> so many deductions you can take that are actually
> beneficial for you. Anything you try to take out
> of the business for income becomes subject to AMT
> after a certain level. This means certain
> exemptions stop being beneficial once you exceed
> AMT. Also, if you have employees, ERISA starts to
> tie your hands on retirement contributions because
> you have to increase the portion you provide to
> employees. Small businesses are at a huge
> disadvantage compared to large corporations that
> can use stock options for compensation.
You're dead on with the facts here.
The problem with increasing taxes on income over 250K is it takes a substantial amount of money out of the private sector where it is more wisely spent and invested and transfers it to the federal treasury where it seems to vaporize.
The 250K margin was set specifically to appeal to people that don't make 250K per year.Human nature. Simple Joe thinks "Well I sure as hell don't make 250K what do I care"? Our economy gets more bang for the buck if the dollar is left in the private sector to be spent or invested forgoing tax rate hikes.
Every year in CA for example the state is losing millions of dollars of revenue on yachts that are delivered to U.S. owners in Mexico instead of San Diego or wherever just to avoid all the fees and taxes. If CA would lower there tax rates just a little they would bring in substantially more revenue to the state.
I have a friend who sold his families horse ranch in southwestern KS for millions of dollars and bought a yacht to pursue his dreams of sailing. He and his family members rotated living in Mexico for like 90 days or something to comply with CA's tax laws just in case they were audited and of course they were. Even including his expenses for having to stay in Mexico he still saved in excess of $80,000.00.
You bet there will be accountants in high gear beating down numbers everywhere to hide revenues. This would show up in suppressed economic data and lower federal receipts than otherwise would have been realized. It (tax rate increase on 250K+) most likely is a moot issue however as I doubt it would pass congress at this point or in the foreseeable future. Good Day WTL
-------------------------------------------------------
> ACCOUNTING 101 Wrote:
> --------------------------------------------------
> -----
> > You shouldn't need to watch any videos or read
> any
> > article to know that anytime anyone discusses
> how
> > much you will pay in taxes they are ALWAYS
> > referring to NET income or profit not GROSS
> income
> > or profit. You are never taxed on the money you
> > spent in order to make the profit if that was
> the
> > case everyone should be pissed that they are
> > getting taxed twice because you already pay
> taxes
> > for all your business expenses at the time you
> > incur them!!!!!!!!! and unless you have a
> really
> > horrible accountant you should be able to keep
> > your net below 250k so maybe you should pay a
> > little extra for a better accountant that can
> tell
> > you what you can write off or maybe instead of
> > wasting time writing on here over and over you
> can
> > do some research online on how to lower your
> > taxable income with deductions!
>
>
> If you are making more than $250K, there are only
> so many deductions you can take that are actually
> beneficial for you. Anything you try to take out
> of the business for income becomes subject to AMT
> after a certain level. This means certain
> exemptions stop being beneficial once you exceed
> AMT. Also, if you have employees, ERISA starts to
> tie your hands on retirement contributions because
> you have to increase the portion you provide to
> employees. Small businesses are at a huge
> disadvantage compared to large corporations that
> can use stock options for compensation.
You're dead on with the facts here.
The problem with increasing taxes on income over 250K is it takes a substantial amount of money out of the private sector where it is more wisely spent and invested and transfers it to the federal treasury where it seems to vaporize.
The 250K margin was set specifically to appeal to people that don't make 250K per year.Human nature. Simple Joe thinks "Well I sure as hell don't make 250K what do I care"? Our economy gets more bang for the buck if the dollar is left in the private sector to be spent or invested forgoing tax rate hikes.
Every year in CA for example the state is losing millions of dollars of revenue on yachts that are delivered to U.S. owners in Mexico instead of San Diego or wherever just to avoid all the fees and taxes. If CA would lower there tax rates just a little they would bring in substantially more revenue to the state.
I have a friend who sold his families horse ranch in southwestern KS for millions of dollars and bought a yacht to pursue his dreams of sailing. He and his family members rotated living in Mexico for like 90 days or something to comply with CA's tax laws just in case they were audited and of course they were. Even including his expenses for having to stay in Mexico he still saved in excess of $80,000.00.
You bet there will be accountants in high gear beating down numbers everywhere to hide revenues. This would show up in suppressed economic data and lower federal receipts than otherwise would have been realized. It (tax rate increase on 250K+) most likely is a moot issue however as I doubt it would pass congress at this point or in the foreseeable future. Good Day WTL
Re: Annual income of average small business?
Posted by:
Voter______
()
Date: February 19, 2011 10:18AM
.
Attachments:
Attachments:
Re: Annual income of average small business?
Posted by:
mcsmack
()
Date: February 19, 2011 11:53AM
Voter______ Wrote:
-------------------------------------------------------
> .
Yep
-------------------------------------------------------
> .
Yep
Re: Annual income of average small business?
Posted by:
It ain't easy street here
()
Date: March 25, 2011 01:53PM
The bottom line: It's not exactly Easy Street for our $250,000-a-year family, especially when they live in high-tax areas on either coast. Even with an additional $3,000 in investment income, they end up in the red -- after taxes, saving for retirement and their children's education, and a middle-of-the-road cost of living -- in seven out of the eight communities in the analysis. The worst: Huntington, N.Y., and Glendale, Calif., followed by Washington, D.C., Bethesda, Md., Alexandria, Va., Naperville, Ill., and Pinecrest, Fla. In Plano, Texas, the couple's balance sheet would end up positive, but only by $4,963.
http://money.msn.com/tax-planning/down-and-out-on-250000-dollars-a-year-fiscal-times.aspx?gt1=33005
http://money.msn.com/tax-planning/down-and-out-on-250000-dollars-a-year-fiscal-times.aspx?gt1=33005
Re: Annual income of average small business?
Posted by:
eesh
()
Date: March 25, 2011 02:32PM
It ain't easy street here Wrote:
-------------------------------------------------------
> The bottom line: It's not exactly Easy Street for
> our $250,000-a-year family, especially when they
> live in high-tax areas on either coast. Even with
> an additional $3,000 in investment income, they
> end up in the red -- after taxes, saving for
> retirement and their children's education, and a
> middle-of-the-road cost of living -- in seven out
> of the eight communities in the analysis. The
> worst: Huntington, N.Y., and Glendale, Calif.,
> followed by Washington, D.C., Bethesda, Md.,
> Alexandria, Va., Naperville, Ill., and Pinecrest,
> Fla. In Plano, Texas, the couple's balance sheet
> would end up positive, but only by $4,963.
>
> http://money.msn.com/tax-planning/down-and-out-on-
> 250000-dollars-a-year-fiscal-times.aspx?gt1=33005
HA! If you are in the red and making around $250k a year, it is your own damn fault. Get a modest home, buy an economy car, do something to make your cost of living easier.
-------------------------------------------------------
> The bottom line: It's not exactly Easy Street for
> our $250,000-a-year family, especially when they
> live in high-tax areas on either coast. Even with
> an additional $3,000 in investment income, they
> end up in the red -- after taxes, saving for
> retirement and their children's education, and a
> middle-of-the-road cost of living -- in seven out
> of the eight communities in the analysis. The
> worst: Huntington, N.Y., and Glendale, Calif.,
> followed by Washington, D.C., Bethesda, Md.,
> Alexandria, Va., Naperville, Ill., and Pinecrest,
> Fla. In Plano, Texas, the couple's balance sheet
> would end up positive, but only by $4,963.
>
> http://money.msn.com/tax-planning/down-and-out-on-
> 250000-dollars-a-year-fiscal-times.aspx?gt1=33005
HA! If you are in the red and making around $250k a year, it is your own damn fault. Get a modest home, buy an economy car, do something to make your cost of living easier.
Re: Annual income of average small business?
Posted by:
WashingTone-Locian
()
Date: March 25, 2011 03:19PM
eesh Wrote:
-------------------------------------------------------
>
> HA! If you are in the red and making around $250k
> a year, it is your own damn fault. Get a modest
> home, buy an economy car, do something to make
> your cost of living easier.
I don't know about going broke on $250K a year, but it is a "perfect storm" for taxes versus income. I've been way above and way below $250K in my life, but it seems that amount is the most headache in terms of deductions lost, obligations, etc.
---------------------------------------------------------------------------------
http://bible.cc/1_corinthians/13-11.htm
-------------------------------------------------------
>
> HA! If you are in the red and making around $250k
> a year, it is your own damn fault. Get a modest
> home, buy an economy car, do something to make
> your cost of living easier.
I don't know about going broke on $250K a year, but it is a "perfect storm" for taxes versus income. I've been way above and way below $250K in my life, but it seems that amount is the most headache in terms of deductions lost, obligations, etc.
---------------------------------------------------------------------------------
http://bible.cc/1_corinthians/13-11.htm