New US Tax Code

[kejedo]

Didn't  link to any one story, b/c have not read the nearly 500 pages of tax instrux. Will work through it page by page for the friends for whom I I still prepare taxes returns.  There are several syndicated news reports, so I didn't pick one to link. They seem to stress more on politics than the actual and factual.  When I did pro taxes, we had to take 30 hours of updates pre-tax season, and laws were changing even after the filing period began. It looks like a small benefit for home school parents, but overall more tax benefits for higher income and less benefits for lower income as (if ?) the years progress. Businesses seem to have fewer write offs, and should, (generally) pay/ prepay expenses before the end of this and every year, if they have any money left.  What impressions have you  gotten? 

[Miss Bea]

I’m trying to ignore it all. Just bad news on bad news. Just looking forward to it being over. However,  I’d be interested in a professional tax person’s opinion that I can trust. You.

Edited December 4, 2017 by Miss Bea
Oops

[Shawnster]

https://www.theguardian.com/us-news/2017/dec/01/senate-republicans-reform-bill-us-tax-code

 

https://www.wsj.com/articles/senate-passes-sweeping-revision-of-u-s-tax-code-1512197717

 

Here are two stories.  Since this particular forum is for discussing particular news items, it's helpful to have links to those news items. 

[New World Explorer]

Australian tax system gives good support to small businesses 

My business benefits greatly from $20000 instant write off on purchases in relation to the business and they can be multiple.

Business can purchase multiple items such as cars,tools,office equipment,electronics, etc and claim INSTANT tax write off. 

For example, if the business generates $100000 and car was purchased for $20000 taxable income automatically becomes only $80000

 

[vern]

I'm waiting for it to be a crime to be poor and they start putting people to death for not having a job that's not available..... sorry.. that's pretty dark.  but i have no clue how this world justifies how they treat people.. greedy satanic spirit...

 

Jesus parable about the man that wanted bigger store houses for stuff and the people want to kill him cause they need food is relevant.

 

can't wait for community shared resources and having an assignment to work and serve somewhere.(in the kingdom of course)

[Tortuga]

27 minutes ago, vern said:

I'm waiting for it to be a crime to be poor and they start putting people to death for not having a job that's not available.....

What about old retired people? 

[New World Explorer]

3 hours ago, Gregexplore said:

Australian tax system gives good support to small businesses 

My business benefits greatly from $20000 instant write off on purchases in relation to the business and they can be multiple.

Business can purchase multiple items such as cars,tools,office equipment,electronics, etc and claim INSTANT tax write off. 

For example, if the business generates $100000 and car was purchased for $20000 taxable income automatically becomes only $80000

 

Quoting myself

 

Forgot to mention that on top of this there is tax free threshold of $18200 per person.

Which would bring down taxable income even further down.

[carlos]

1 hour ago, vern said:

Jesus parable about the man that wanted bigger store houses for stuff and the people want to kill him cause they need food is relevant.

 

Hey, Vern, I don't remember that part about hungry people killing the rich man. Are you quoting from the Gospel of Vern?

[Qapla]

Whatever they do with the tax code is just something we have to live with - since we must "pay to Caesar" ... although, it would be nice if they tripled SSA payments

Edited December 5, 2017 by Qapla

[trottigy]

I am still wondering if they can actually pass something - given how fragmented they are and how different their "goals" are. They still need to run this thru a reconciliation committee - which will change things again. Then both houses needed to pass the same thing. I wonder if it will get stuck there - given the short time frame they have.

 

I wouldn't go thru the details until we at least have something out of the reconciliation committee.

 

Edit: they just found out that they made a huge mistake with the handwritten bill they passed. So, this WILL have to go to that committee.

https://www.reuters.com/article/us-usa-tax-amt/house-senate-republicans-face-challenge-over-corporate-amt-tax-idUSKBN1DZ01P

 

Edited December 5, 2017 by trottigy

[kejedo]

2 minutes ago, trottigy said:

I am still wondering if they can actually pass something - given how fragmented they are and how different their "goals" are. They still need to run this thru a reconciliation committee - which will change things again. Then both houses needed to pass the same thing. I wonder if it will get stuck there - given the short time frame they have.

 

I wouldn't go thru the details until we at least have something out of the reconciliation committee.

Please add your wisdom as you  observe the process unrolling. 

[Qapla]

Since I have no input into the drafting of the tax code (and I do not want to have anything to with drafting it) I will just keep doing what I have done all along.

 

I will work, report my income and pay my taxes - the tax software makes it easier for me to do so - so, I will just keep using the software I always use and let them worry about how to deploy any changes in the tax code.

[kejedo]

Some of the software has videos of the current tax-year changes.  Some are accurate, informational, and practical, but we don't need to learn them all if we are doing personal taxes. I am interested in the plight of the Schedule C business proprietors.  Or, I'm bound for Australia, Away (in my dreams, and from an old Shanty song.)

 

Edited December 5, 2017 by kejedo

[trottigy]

24 minutes ago, kejedo said:

Some of the software has videos of the current tax-year changes.  Some are accurate, informational, and practical, but we don't need to learn them all if we are doing personal taxes. I am interested in the plight of the Schedule C business proprietors.  Or, I'm bound for Australia, Away (in my dreams, and from an old Shanty song.)

 

 

 

My wife does accounting for her company and she and I have done volunteer work helping do others taxes. It was nice, they sent us thru multiple class on doing them and then we signed up for several days at a local rec center. The volunteer organization (I don't wish to name) brought in mostly elderly individuals and we did their taxes for free.

 

The laws haven't really changed much in the last 4 years, but this will be HUGE! IF it passes.

 

They (and many other tax preparers) will have to redo their training. Let's see if they can pass something in this short time and what they pass. 

 

Edit: I have a hunch that a few Republican Senators have a spoiler coming for Mr Trump. Also, the special election in Alabama (Moore vs Jones) may also have an affect. If Moore looses the Republicans will have only 51 Senators -rather than 52. That makes things even tighter. 

Edited December 5, 2017 by trottigy

[New World Explorer]

38 minutes ago, kejedo said:

Or, I'm bound for Australia, Away 

Tax heaven? LOL

[Qapla]

I have to be concerned about the schedule c stuff as well as the farm changes

 

I have found that the software handles these changes in an understandable way

[kejedo]

29 minutes ago, trottigy said:

 

My wife does accounting for her company and she and I have done volunteer work helping do others taxes. It was nice, they sent us thru multiple class on doing them and then we signed up for several days at a local rec center. The volunteer organization (I don't wish to name) brought in mostly elderly individuals and we did their taxes for free

Yay for Mrs. Trottigy. We should get some good feedback on what flies in the real world. I also was intending to volunteer to do taxes, probably for the same org, (primarily for the elderly) but instead just do volunteer taxes for the friends.  

[Qapla]

I do taxes for 7 people but they are all family

[kejedo]

Just now, Qapla said:

I do taxes for 7 people but they are all family

That's plenty enough to keep us interested and amused.

[Qapla]

Three of us have schedule c and one has farm

One is ez

[kejedo]

1 hour ago, trottigy said:

Edit: they just found out that they made a huge mistake with the handwritten bill they passed. So, this WILL have to go to that committee.

https://www.reuters.com/article/us-usa-tax-amt/house-senate-republicans-face-challenge-over-corporate-amt-tax-idUSKBN1DZ01P

       An alternative to the Alternative Minimum Tax?  

[vern]

10 hours ago, carlos said:

Hey, Vern, I don't remember that part about hungry people killing the rich man. Are you quoting from the Gospel of Vern?

 

Luke 12:13 Then someone in the crowd said to him: “Teacher, tell my brother to divide the inheritance with me.” 14 He said to him: “Man, who appointed me judge or arbitrator between you two?” 15 Then he said to them: “Keep your eyes open and guard against every sort of greed,*+ because even when a person has an abundance, his life does not result from the things he possesses.”+ 16 With that he told them an illustration, saying: “The land of a rich man produced well. 17 So he began reasoning within himself, ‘What should I do now that I have nowhere to gather my crops?’ 18 Then he said, ‘I will do this:+ I will tear down my storehouses and build bigger ones, and there I will gather all my grain and all my goods, 19 and I will say to myself:* “You* have many good things stored up for many years; take it easy, eat, drink, enjoy yourself.”’ 20 But God said to him, ‘Unreasonable one, this night they are demanding your life* from you. Who, then, is to have the things you stored up?’+ 21 So it goes with the man who stores up treasure for himself but is not rich toward God.”+

[trottigy]

Where’s the part about people doing this because they are hungry?

 

I thought the illustration was about not being overly concerned about material things to the neglect of spiritual things. Which is a good reminder when we are talking taxes.  

 

Edited December 5, 2017 by trottigy