Hard Working equals More Taxes

Discussion in 'Business Operations' started by tiedeman, Nov 27, 2004.

  1. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    Does anybody see anything wrong with this but myself? Maybe I noticed it more this year because I am going to fall under a higher tax bracket, but why is it when you work harder to have more money, the government taxes you more?
     
  2. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    the other thing is why put together a tight budget, because when you put together a tight budget, more of your net income will get taxed.

    A guy on here a while ago talked about investing that money back into the company instead of having it taxed, and at first I thought he was crazy, but now I see what he was talking about. It is almost better to invest it back into the company than to have it taken away from you from the IRS.
     
  3. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    You need to consult with an investment expert at this point. There are legal ways to avoid paying taxes on portions of your income.
     
  4. GarPA

    GarPA LawnSite Silver Member
    from PA
    Posts: 2,585

    Richard is right..talk to a good accountant. YOu may want to restructure the way your business is set up (sole p versus the other ways)

    And if you need any equipment at all, buy it before 12/31 and you can expense ALL of it for accounting year '04..if you choose not to depreciate it
     
  5. paponte

    paponte LawnSite Silver Member
    Posts: 2,366

    tiedeman, talk to your accountant. Make him work for his money. There are ways around everything, legal ways that is. :)
     
  6. GarPA

    GarPA LawnSite Silver Member
    from PA
    Posts: 2,585

    amen to that...not only is he paid to do the vanilla accounting/tax work, but he should also be expected to provide you with an analysis of your situation and his recommendation on how to minimize your tax liability

    we pay accountants more for what they KNOW, rather than what they DO
     
  7. YardPro

    YardPro LawnSite Gold Member
    Posts: 3,563

    uncle sam has set it up to encourage people to spend thier money, of set it up in specific investments.
    it's trickle down economics.
    it is designed to keep the money flowing in the economy, instead of sitting in accounts.
     
  8. Randy J

    Randy J LawnSite Bronze Member
    Posts: 1,124

    I can't understand why more people don't insist on a flat-tax. That or a national sales tax are the only fair ways to do it.
     
  9. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    With all your money Gary, what does it matter:p. A good accountant is like your "silent partner" IMO.
     
  10. K.Carothers

    K.Carothers LawnSite Bronze Member
    Posts: 1,124

    Bingo! Everyone pays with the flat tax and the IRS goes away(for the most part).
     

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