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  1. #41
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    Quote Originally Posted by LauraKY View Post
    If you're posting online about paying cash to avoid taxes ...you're a fool

    Are you reporting the none sales taxed interstate Internet purchases to the commonwealth of Kentucky so that you can submit the sales tax to them?



  2. #42
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    Quote Originally Posted by CDE Driver View Post
    RE: Bartering. Honest question.

    For example:
    Someone gives a riding lesson in exchange for four bales of hay.
    No cash has changed hands.
    Where does the money come from to pay the tax on that exchange?

    If you happen to do most of your business this way how are you going to have money to pay tax on the barters?
    If I traded 4 bales of hay for something than I'd record the value of the hay as sale (which in VA is subject to 5% sales tax) and then record the cost of the riding lesson on my books. It's an accounting entry that is pretty simple if you are a bookkeeper.

    You might get away with it not recording and you might not. We were taught in school that most tax evaders are caught by someone turning them in. Keep your friends close and your enemies closer.


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  3. #43
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    Quote Originally Posted by clanter View Post
    Are you reporting the none sales taxed interstate Internet purchases to the commonwealth of Kentucky so that you can submit the sales tax to them?
    Well, since I've not ordered anything online this year, don't see how it applies. I buy local. In any case, if you're talking about it online as a way to avoid paying taxes (which is what I said), you're a fool. I still stand by that.
    "We can judge the heart of a man by his treatment of animals." ~Immanuel Kant



  4. #44
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    Quote Originally Posted by Daydream Believer View Post
    Well I'm a farrier and I report ALL my receipts including those in cash. I was a CPA some years ago and believe me, tax evasion is not something you want to get caught doing. My books are 100% straight as a result.

    So Kerry gets caught evading taxes and gets nominated for Sec. of State? What a screwed up gov't we have. Seriously...
    Have you ever crossed state lines to avoid paying income tax on something? It's tax avoidance in the case, not tax evasion. There's a difference.
    "We can judge the heart of a man by his treatment of animals." ~Immanuel Kant



  5. #45
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    Jan. 4, 2007
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    Quote Originally Posted by FitToBeTied View Post
    Learn something every day. I thought independent contractors were not 1099'd.

    I've never provided a 1099 to a farrier, vet, contractor, etc. and I'm not going to start now. I view it as the recipient's responsibility to report.

    Basically I am of the viewpoint that the government is tremendously inefficient and wasteful with the tax dollars they already get. I am all for hiding as much money from them as possible. Barter away!
    Depending how the business of your vets, farrier, etc. is organized, you may not have to provide 1099s to them.

    Your accountant can walk you thru that.
    Ours checks them out, many times by talking to their accountants directly and either prepares a 1099 for them or not, depending on what they find.

    We used to handle our own taxes decades ago, but eventually the laws became so complicated, we feel better letting accountants handle them.

    Accountants keep going to continuing education and certification seminars to keep their certifications and stay up on all the new rules.
    It would be very hard for anyone managing a business to do that job also.



  6. #46
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    I don't use an accountant as we are not a business but a hobby farm. Therein lies the distinction. According to my friend the CPA, since we are not a business we do not have to file the 1099's.
    "I couldn't find my keys, so I put her in the trunk"



  7. #47
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    Jul. 31, 2007
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    Quote Originally Posted by Eclectic Horseman View Post
    If you look at my post #56 over on Beentheredonethat's thread about cutting spending and increasing revenue, I brought up the issue of avoiding taxes on all levels of our society and proposed a national sales tax as the fairest method to raise revenue.
    It most certainly is not, if you are talking about distributing the tax burden between rich and poor. Sales tax is "regressive", meaning po folks paying their 6% on the Slim Jims at the gas station pay a higher percentage of their income than do rich folks.

    And some speaker on TED made the point that the problem with the uber-rich is that there are only so many Slim Jims (or bespoke suits or yachts) one person can buy.

    So uber-rich guy buys all he wants, stops, and then puts his money into other stuff. If all goes well, he's a great venture capitalist. If all goes badly, he benefits from a tax code full of holes that favor his type of spending.
    The armchair saddler
    Politically Pro-Cat


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  8. #48
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    Quote Originally Posted by mvp View Post
    It most certainly is not, if you are talking about distributing the tax burden between rich and poor. Sales tax is "regressive", meaning po folks paying their 6% on the Slim Jims at the gas station pay a higher percentage of their income than do rich folks.

    And some speaker on TED made the point that the problem with the uber-rich is that there are only so many Slim Jims (or bespoke suits or yachts) one person can buy.

    So uber-rich guy buys all he wants, stops, and then puts his money into other stuff. If all goes well, he's a great venture capitalist. If all goes badly, he benefits from a tax code full of holes that favor his type of spending.
    That's why you have to not concentrate on the super rich. When taxes get too high, they have the means to just go elsewhere. We are talking about a tiny portion of the total tax in this country and while it may feel "unfair" to you--if we drive all of our super rich to live in other countries, that isn't going to help either.

    I have been talking about everyone else who cheats on taxes, and it is a HUGE number. They wouldn't be able to avoid a national sales tax unless they have the means to buy outside the country. There should, of course, be exemptions for necessaries (clothing, food, medicine.)

    It has nothing to do with the "uber-rich" as you call them. The biggest tax loophole of all (in terms of dollars) is the mortgage interest deduction. Talk about regressive. Why should the renter have to pay all of his income tax and the homeowner gets a huge deduction?
    "Against stupidity the gods themselves contend in vain" ~Friedrich Schiller



  9. #49
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    Actually, the best idea of all is a Value Added Tax which is a consumption tax on the supply chain and not directly on the end user. Europe and Scandinavia--all those progressive countries have them.

    http://en.wikipedia.org/wiki/Value_added_tax
    "Against stupidity the gods themselves contend in vain" ~Friedrich Schiller



  10. #50
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    Do e-bay sellers pay taxes? I haven't when I buy from them.
    Proud member of People Who Hate to Kill Wildlife clique



  11. #51
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    So here's my problem with a VAT. Let's say the federal government decides to institute a VAT in place of our current tax system (a reform that has been bandied about). So the rate gets set at, say 17%. Maybe it would be lower, but I've seen that % as an example in some of the articles I've read (sorry not to have sources to cite, but this is just from miscellaneous readings I've done over the past several years as part of my job). So all goes well for a few years, until the government remembers that there's a constitutional amendment empowing them to insitute an income tax. So we end up with a national sales tax plus an income tax...

    Now, for that matter, does the federal government actually have the power to enact a national sales tax, or would that require a constitutional amendment? Wondering if that might be a power left to the states.
    Only one cat - must not be totally crazy yet!



  12. #52
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    Quote Originally Posted by Choras View Post
    I think we need to encourage people to pay their taxes, as it always works fro the welfare and prosperity of our economy and overall country's progress.
    How can that possibly be true when we know that there is not a straight coorelation beween tax rate and revenue. There are plenty of historical instances where the tax rate was lowered and it resulted in higher revenue and and a improved the economy.



  13. #53
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    A couple of things about reporting. If you pay a contractor over $600 in a year, you must provide a 1099. When Obama took office he passed a law that required us to file 1099's for *everything* even the retail feed store or tack store purchases. It was incomprehensible and a nightmare fore everyone in the courty. Of course Obama signed it. Many objected and it was repealed and a national disaster was averted.
    So, you do have to do 1099's as you always did but not to your retail providers like the local feed store.

    If you barter, that is a taxable event and you must report the value of the barter received as income. If I were to trade hay for a horse, I would be legally required to report the value of the horse as income.

    Many, many people do not report their income. I do. I have been audited a few times and I find it a lot simpler to just aggressively file tax returns, but very by-the-book legal ones.



  14. #54
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    Here in Miami, a lot of businesses (like lawn care services, tile people, etc.) will ask you to pay in cash or write the check to a person rather than the business, all in order to keep it under the table and not pay taxes. Not something I'm willing to do, but sadly many others are.



  15. #55
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    The problem with a VAT is that it does not preclude the existence of an income tax as well. The countries of the European Union have both income tax and VAT. The typical VAT in the EU is around 20%. Yes, this does hit the end consumer because it is passed along in the price of goods.
    "I couldn't find my keys, so I put her in the trunk"



  16. #56
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    Quote Originally Posted by FitToBeTied View Post
    The problem with a VAT is that it does not preclude the existence of an income tax as well. The countries of the European Union have both income tax and VAT. The typical VAT in the EU is around 20%. Yes, this does hit the end consumer because it is passed along in the price of goods.
    Right. But the income tax could be lower, flat, and without all of the ridiculous loopholes. The fact is that as this thread has shown, not paying income tax is easy and very common. Most people think it is perfectly okay. With that kind of thinking, is there any wonder that we are in the financial hole?
    "Against stupidity the gods themselves contend in vain" ~Friedrich Schiller



  17. #57
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    TX
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    I think we are in a financial hole because we are using more than we have.

    Politicians are human and will use all they have, if it makes sense or not, the government doesn't buy bonds or stocks or saves money, they are all about spending what they get and asking for more.

    If any business was run like the government runs thru money, we would not have any business left that didn't go bankrupt.

    That mindset of those holding the government purse strings when taxing and allocating that money is what HAS to change, if we ever are going to get back on track.



  18. #58
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    Yes, Bluey. Their behavior is like the people who kept taking money out of their houses in the mid 2000s. They think that the economy is just going to continue to grow and that they will be able to pay off their debt. As we saw in 2008 when the housing crisis hit, it is wishful thinking. Ask Greece or Spain how this mindset is working out for them.

    The only way to change that mindset is to change the people who are in government. Unfortunately that won't happen because nobody wants cuts that may effect them, so they vote in the people who will promise them not to cut.
    "Against stupidity the gods themselves contend in vain" ~Friedrich Schiller



  19. #59
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    Quote Originally Posted by Eclectic Horseman View Post
    Right. But the income tax could be lower, flat, ?
    Yes my dear their is a Santa Claus



  20. #60
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    Quote Originally Posted by Coyoteco View Post
    A couple of things about reporting. If you pay a contractor over $600 in a year, you must provide a 1099. When Obama took office he passed a law that required us to file 1099's for *everything* even the retail feed store or tack store purchases. It was incomprehensible and a nightmare fore everyone in the courty. Of course Obama signed it. Many objected and it was repealed and a national disaster was averted.
    So, you do have to do 1099's as you always did but not to your retail providers like the local feed store.
    Obama's mandate was a 1099 on Every Purchase of goods that exceeded $600.... not an accumulative year's purchases but every transaction.... our CFO blew a gasket



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