Gmt IIc tax write off?

[JP Chestnut]

Originally Posted by wcl884

Brettpaul, this is why I love this forum - the free exchange of ideas and sharing of different point of views.

I have lived/worked overseas for several years and my employer was nice enough to pay parts of my overall tax payments (so I'm net-neutral as if I'm paying only US taxes and not double-taxed by foreign government too).

However, as I mentioned before, you have a choice as to relinquishing your US passport and citizenship so to avoid paying US taxes. The team I work with, no one did that because we all enjoy the protection of the US Passport & US State Department when traveling abroad - especially at the risk of having our workplace stormed by foreign nationals.

For the tax savings you get, you may end up paying more protection or riders on your personal insurance.

I'm not sure a US passport is the hot travel item it once was.

[DrJP9]

Originally Posted by wcl884

If you don't mind me asking, which locality charges 7% local tax rate? And to be clear, this is personal income tax and not property tax / business income tax. The only place I know of is DC which goes above 6% of your taxable income, but that was from a few years ago.

Let's not have this devolve to a 'How hard does the government bend me over at tax time' argument!

OP: Whoever told you that you could write off a 25k watch was surely repeating advice he himself wouldn't take, or will soon be awaiting an audit of his own.

Look at it this way, when someone needs to purchase a car for work related travel, it's not a Ferrari!

[JohnBoy]

Originally Posted by JustABreathAway

"50% tax bracket" - 35% federal plus 8% state plus 7% local does indeed equal 50% of every marginal dollar I make being confiscated by government.

So yes, my top marginal rate is well over 50%, thank you very much.

Don't want to start a squabble, but taxes really don't add up serially to make a total, as you demonstrate. Federal tax is based on an adjusted gross amount of taxable wages/profits less deductions (including state and local taxes, personal property/excise tax, mortgage interest, etc.) and personal exemptions (# of personal and family dependents, age, infirmities, etc.); local taxes are primarily general sales tax (state, county, and city sales) - paid on a part of disposable income (usually not on basic foodstuffs, certainly not on mortgage payments, etc., etc.). Thus, overall, your combined taxes from fed/state/local can't be as high as 50% of the total 'marginal' dollars from your wage/business.

I think this is what one member was trying to note above - 50% really sounds high. Maybe its a moot point - and its certainly no argument that you are paying a pretty high effective tax rate on your dollars! Jus sayin' - no offense intended.

[Trouble15]

Originally Posted by JustABreathAway

"50% tax bracket" - 35% federal plus 8% state plus 7% local does indeed equal 50% of every marginal dollar I make being confiscated by government.

And that's before I pay my employees and the various consultants it takes to make sure that I don't run afoul of government regulations while I'm just trying to, ya know, keep people alive when they'd otherwise be dead and bring them back from death in the event that they do die.

So yes, my top marginal rate is well over 50%, thank you very much.

And no, I don't make anywhere near what Buffet does.

Don't forget to add social security tax, medicare taxes, & new Obamacare taxes. After that you may want to buy something, don't forget about the sales tax.

[Timber Loftis]

Originally Posted by Trouble15

new Obamacare taxes.

... paid as a penalty by those who (a) can afford health care and (b) opt not to buy it. Otherwise, inapplicable. Just stating the facts for the would-be tax advisors.

IBTL!

[dmb4lfe]

Not on your personal taxes. If you have a LLC or S-Corp you could try but that is still pushing it unless you are a jeweler.

With that being said I am a former Security Contractor who worked overseas and I have seen guys get away with crazier write offs under their S-Corps. I have also seen other guys in the same line of work get audited and have to pay tens of thousands of dollars for bogus deductions.

IMHO it is not worth the risk especially if you are headed to Iraq on contract. The IRS is really cracking down on Schedule C independent contractors working overseas. They have even gone to the trouble of creating a special department to audit these folks, at least that what my CPA told me when I was audited this past year. He had over 20 Schedule C clients audited last year, which was 10x the number he had in the previous 5 years.

Again IMHO it is not worth the risk!

[Kringkily]

I dunno I calculated after Federal, state and city tax here in NYC I equal to about 36% tax right out of my paycheck. Then I have to pay a sales tax of 8.875% so I am effectively paying 41.68% of my paycheck to the government or city or state / combination. Sigh lol

[Trouble15]

Originally Posted by Timber Loftis

... paid as a penalty by those who (a) can afford health care and (b) opt not to buy it. Otherwise, inapplicable. Just stating the facts for the would-be tax advisors.

IBTL!

I'm not up to date on the laws, & my apologies if I'm incorrect, but isn't there additional investment type taxes coming into play in 2013 as a result of the health care overhaul? Either way not a big deal, not trying to get into an argument or anything or sorts.

[iraden]

Originally Posted by wcl884

*Rant Start* You don't have to pay taxes or earn the level of income that gets you to the "50% tax bracket" and you can choose another profession or live in another State or Country, but you chose to be where you are today and chose a profession that pays you what you are getting.

You're absolutely right. And there is a threshold, which we are rapidly approaching, when people will decide to choose another profession or not work as hard. That is what is really scary.

De-incentivizing hard work and advanced education is not wise, and is not a good direction for this country in my opinion.