Looks Like the goverment is going to put most of us Out Of Bussiness

[red oaks lumber]

one of you said cash is king.. thats why the 1099 to capture the money going under the table, also the govment wants to do away with cash, so they can capture all sales. they know they are lossing out on millions if not billions of tax dollars.
 far as the 1099 form goes, most companys are already using them. if you send me one at the end of the year you are just giving me the heads up that you are using me as an expense, so i should report it also.

[Randy88]

Isn't " change" wonderfull, have you hugged your politician today?   Can't wait to see whats next on the adjenda for the  "change" thing we've been promised.

[Dan_Shade]

I think the best change that could happen is to replace all the members of congress.

slim chance of that happening.

[LeeB]

Yeh budy, I used to have some money, now I'm just trying to scrape up my change.  

[Randy88]

I'd have to agree but by then they'll have all they want in place and it'll take decades to undo whats been done so in the meantime we can live with the mess.   The change for the 1099's is nothing compared to whats coming in the next few years.   Isn't it grand we've fought communism and fashism and socalism for centuries to end up voting it into office here, and thats called progress.   

[robnrob2]

Well My 2 cents here,,
I runs a small buisness too, I operate a woodworking shop, where entertainment centers and wall units are made,  furniture, etc, I also operate my sawmill, and I sell some of my southern woods as well as I buy from my distributor and resell  kiln dried appalachian hardwoods, infact some of ya'll may have milled.
But all that said, yes at the end of each month I do my paperwork,, and I waste/spend time doing that, but when it  comes to the years end when I file my federal tax's   I calculate the time spent/wasted on  my gathering this tax return paperwork/info at $50 an hour and it goes right into the cost  with my cpa's cost, and is deducted,,, am I posta gather and keep all the governments wanted info for free?   Not here. They want the return they gotta pay for it in my time spent. Additional 1099's also.

[Raider Bill]

All we can do about this mess is...........

 

[John S]

Hopefully America is waking up as indicated by these posts.  I joined the local Tea Party, vote on November 2.
John

PS: Will pick up my new LT40HDG28 from Marty tomorrow.

[terrifictimbersllc]

but when it  comes to the years end when I file my federal tax's   I calculate the time spent/wasted on  my gathering this tax return paperwork/info at $50 an hour and it goes right into the cost  with my cpa's cost, and is deducted,,, am I posta gather and keep all the governments wanted info for free?   Not here. They want the return they gotta pay for it in my time spent. Additional 1099's also.

According to the IRS he value of your own time is not a deductible business expense (if you want I can look it up for you).

[jimparamedic]

So it all comes down to the rich get richer and the poor get poorer. We will either be the have or we will be the have not.

[logwalker]

but when it  comes to the years end when I file my federal tax's   I calculate the time spent/wasted on  my gathering this tax return paperwork/info at $50 an hour and it goes right into the cost  with my cpa's cost, and is deducted,,, am I posta gather and keep all the governments wanted info for free?   Not here. They want the return they gotta pay for it in my time spent. Additional 1099's also.

According to the IRS he value of your own time is not a deductible business expense (if you want I can look it up for you).

Well it certainly is if you are a S-Corporation and you pay yourself to do it. But then you have to pay taxes on that too.

[terrifictimbersllc]

but when it  comes to the years end when I file my federal tax's   I calculate the time spent/wasted on  my gathering this tax return paperwork/info at $50 an hour and it goes right into the cost  with my cpa's cost, and is deducted,,, am I posta gather and keep all the governments wanted info for free?   Not here. They want the return they gotta pay for it in my time spent. Additional 1099's also.

According to the IRS he value of your own time is not a deductible business expense (if you want I can look it up for you).

Well it certainly is if you are a S-Corporation and you pay yourself to do it. But then you have to pay taxes on that too.

In that case it's the money paid, not the value of the time that is deductible. 

[logwalker]

When you pay it to yourself you then have to pay the self-employment tax which is almost 15%. After that come the income tax for whatever tax bracket you are in.

Joe

[Qweaver]

For the $110,000 I have spent on equipment, tools and sheds to run my sawmill business, I could have bought 4000 shares of AT&T which pays a $6720 yearly dividend.   On the equipment and tools I must pay sales tax in WV and a yearly 1.77% property tax on their depreciated value.  I must also pay capital gains tax to both the feds and the state for any profits I make...plus I have to work many hours to make a $6720 profit...think of the overhead.  I'm far better off to just stick the money in the stock market, pay the capital gains and do very little work to make the money.   This is just stupid what the state and feds are doing to small business.  I asked a CPA how anyone made money in WV and he said "everyone cheats".  Why do we let them do this to us?

[Randy88]

Thats the need for the 1099's is because everyone cheats and they are trying to get their tax money out of you so they make you do more paperwork for them so they have a checks and balances system that they can plug into a computer to see if someone lied on their taxes and didn't report some of their income.   As far why do we let them do this to us its simple, the public voted them there and since theres more with a hand out than there is putting food and money into their hands there no need to change whats working in their favor.   Don't forget you paid taxes on the materials in the buildings as they were put up and now get to pay property taxes on them forever and oh yea, don't foreget anytime they want they can raise the values which increases the property taxes you get to pay,  I call it a stupid tax that never ends and since I've got a lot of buildings I've got to be the stupidiest of all.   

[stormyweatherman]

i feel your pain randy,

just got the tax bill for my place in maine.  land and a building the size of a 2 car garage.  no well, no septic.  they raised the value on the land and the building (even though about 6 properties changed hands in the whole county last year), thereby 'justifying' a 20 percent increase in the total property tax over last year.  its not that much money in absolute dollars but its a huge increase proportionately and we get ZERO services.  its a privately maintained road, the public roads are horrible, and there isn't even anywhere to take trash.  we carry in, carry out, and burn paper. 

they're doing the same thing back here at home too.  local govts. are broke or going under and they're just slamming people with property tax increases.  we are far from out of the woods in this country. 

[Ron Wenrich]

There's a push to do away with property taxes in PA.  They want to broaden the sales tax base and tax that.  I don't like it since my work is all business to business, but it would be subject to a 6% sales tax.  My state income tax is at 3.2%.  Its a flat tax for every income class.  So, essentially those folks that are doing subcontracting work would have their income taxed at a higher rate. 

The representative who dreamed up this scheme said to just charge your client more money.  Besides, it would put more of a tax burden on the poorer class of people, which many politicians couldn't afford in votes.  Its pretty regressive.  Somehow doctors got exempted from the tax scheme.  I think they call that the old folks vote.

[ladylake]

 Back in 1983 when I moved to my place property taxes were $450 a year and the average factory wage was around $7 to $8 a hour. Last year my property taxes hit $3000 and tha average factory wage is $12 to $14 a hour. It doesn't add up too good, government is out of control with the current politactions whipping it on. If the wages were keeping up with the property tax rate increase the average factory worker would be making about $50 a hour now. Were headed downhill fast with no brakes.   Steve

[woodman58]

One thing that has not been brought up is that we are going to have to get tax information (social security #, tax ID #) from anybody we pay $600 or more to. Some people may not be willing to give out this info to somebody they don't know. If you sell a car to someone they may ask for you social security # to claim on there taxes. Are you will to give your # to a complete stanger?  That means that we are going to have more of a chance to have our identity stolen. People don't always dispose of paper work by shredding it. This also means that I will have to get tax #'s from Home Depot, Lowes, etc.of witch I do alot of buisness with. I just see alot more hassel on our end.

[Randy88]

You want an example of how that all works and why this is all being done I'll give you a life lesson on the real world implications of exactly why and how.   I'll try to be nonbias on the whole deal but I'll explain how the scam they are trying to prevent is done.   Now remember this scam goes back to a simplier time with virtually no new modern computerization and when these 1099's were not needed and they didn't have a means to track income or expense.   So if you hired john doe and he did 1000 dollars worth of work and decided not to report it the government didn't know.   So its a long post and I'm sorry for that and I'll try to write it down so the average person can understand it.   

There was a wealthy medical professional in this case that did just what I'm writing and it could have been basicallly anyone.    He'd use bogus purchases to offset his income to lower his tax bill every year and this is how he pulled it off.   He'd aquire copies of purchases an individual made throughout the year by screening checks coming through a small town bank he was a main stockholder of to the point he virtually owned it and was also a director on so he knew where the purchases were made from and the amounts of those purchases, he'd then go there and buy something small like a garden tiller or something equally dumb so he had receit from the company so he could then duplicate the letterhead and purchase order [any college kid with a little time and imagination could do this] and he'd go get numbers off machines to get a serial number to go with the bogus purchase order [off the dealer lot where he bought the garden tiller] and then all he needed was a cancelled check to match the bogus sale so he'd get a stamper from the bank and stamp his bogus checks with to make them look like they'd gone through the banking system and the scam was complete.    He had fake purchases he could either expense out or depreciate out as fast as possible and the paperwork and cancelled check to match.   Now if he was ever audited they never actually went and looked at his business to see if the serial numbers matches let alone if the equipmet was there at all, they just look at numbers so its just a paperwork trail that led nowhere but his taxes.    This worked fine until they came out with 1099's and when you bought something greater than whatever value they would have to send in a 1099 to the individual who did the work or purchased the stuff from but only those that filled them out and actually sent them in the first place, most didn't so he worked around the system and found those that ignored the 1099 thing and kept it up for a while longer.   Now once the machines were depreciated out they went off the tax sheets and all he'd have to tell anyone looking was I gave it away because its not worth anything anymore  or I junked it out and thats not against the law and that ended that conversation and it was done unless they needed to investigate further but if alls in order and passed any irs scrutiney then who would or why.   

Now your going to ask how do I know any of this and thats the rest of the story as they say, you could say I was a victim of serial number theft so to speak and a victim of circumstances that converged that were unrelated.   Ever been told you were in the wrong place at the wrong time before, here one for example.    I'd been farming with this guy for years and not knowing anything about his scam didn't know what to look for and nothing was out of the ordinary unitl his death and his heirs came looking for equipment and had serial numbers and paperwork and tried to have me arrested for equipment theft [my equipment] and this is when the whole story broke, apparently he forgot to mention to his kids he'd been doing this and they actually thought they were intitiled to all those purchases and could sell them.   Well when push came to shove one of us had the real paperwork and one didn't and since I had the real cancelled checks and they had gone through a bank and the dealers I'd bought them from did back my story it was all over for the heirs.  Now this was also the same time some twit doing 1099's made a mistake on the amounts and also the EIN numbers and they were sent to me and that triggered a red flag on my taxes as being wrong so we got to deal with trying to straighted it all out and prove my taxes were right and it was just a mistake on the typest part filling out the 1099's so we asked a lot of questions at the time and this is the story my tax person and legal personal I hired to get me out of this mess and prove my stuff was mine had pieced together.    Now he might have had more or different scams to avoid taxes but I'd have no way to know about them this is the ony one I was indirectly involved in.

So the 1099 thing is only a way for the government to control fraud and tax evasion by having both parties send paperwork and have a receit so to speak and both parties need to match or close anyhow and if they don't they can put all this stuff into a computer and find out who's lying and go after those individuals.   Its really a simple system until someone makes a mistake or an omission and then they know who is was and for what amount becasue they have all the numbers to use like EIN's or social security etc.   

Now for the last question, did anything happen to the guy that evaded taxes, not that my people could find out, see he'd gifted his property away years ago to his kids and kept lifetime free use of it get all the income off of it and they had to pay the property taxes and legal things like that so as I was told the government couldn't go after the land and since he was dead and all his wealth was previously distributed they had nothing to go after or figured since he did pay tax just not enough tax that was good enough.   So to my knowledge he walked away scamming hundreds of thousands of dollars if not millions of not paying tax and got away with it, now I'd say his kids might be under a lot of irs scruitiny for the rest of their lives but thats just a perk.    Do I agree with all the paperwork needed, no but I do see a reason for it but on the other hand is it my job to help the irs do thier job, I don't think so and am I upset over the fact this guy got away with what he did, he evaded more in taxes than I'll ever owe and thats not right either because he could afford to pay it he just didn't want to pay it, there is a difference.   So for me it is a double edged sword I know what it could prevent but I don't want to help them do their job or have to spend the time and money either.