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This does not take into account the changes to pass-through entities which I still don't fully understand ... When I say I don't fully understand them, what I

by rsync 9y ago

This does not take into account the changes to pass-through entities which I still don't fully understand ... When I say I don't fully understand them, what I mean is, it looks like they have changed pass-through entities into (effectively) negative pass through entities for up to 20% of before tax earnings ? And I think this is for "draw" or "dividend" income that you extract from the entity ? So it's like santa claus came and gave me an enormous gift that I never even dreamed of asking for ? There must be something I am missing here ...

ncallaway 9y ago
No, there's not. It's something I was discussing with an accountant when these tax proposals were first being discussed. The accountant _would not accept_ what I was describing as their proposed pass-through treatment of income because it would be _ludicrous_. Ultimately, though, that's what they did. I get a _huge_ tax break that I don't want and don't need, because we happened to structure our business as a partnership instead of an LLC.
- Justin_K 9y ago
  Use the tax break to pay for increased healthcare costs!
- coolso 9y ago
  I’ll take it off your hands! I just sent my name and address to you via PM, but let me know if you’d prefer to send through PayPal instead of a check.
  - ncallaway 9y ago
    No thanks! I'm going to put it into a savings account or low risk investment, and write a check to the US Treasury at a time when I have more faith in the federal government.
    - coolso 9y ago
      So... you do want the huge tax break then? Hopefully you'll consider donating at least some (perhaps even all) of that tax break money to a homeless shelter or a food bank, maybe an animal shelter as well, especially this time of the year. That would definitely make that money go much further than it would if you paid it in taxes or sent it to the Treasury, be it this year or 10 years from now.
- otoburb 9y ago
  I thought an LLC can elect to be taxed as a pass through entity also (sole proprietorship or partnership-equivalent for tax purposes), so they might also be included.

by rsync 9y ago

ncallaway 9y ago

No, there's not. It's something I was discussing with an accountant when these tax proposals were first being discussed. The accountant _would not accept_ what I was describing as their proposed pass-through treatment of income because it would be _ludicrous_. Ultimately, though, that's what they did. I get a _huge_ tax break that I don't want and don't need, because we happened to structure our business as a partnership instead of an LLC.

Justin_K 9y ago
Use the tax break to pay for increased healthcare costs!
coolso 9y ago
I’ll take it off your hands! I just sent my name and address to you via PM, but let me know if you’d prefer to send through PayPal instead of a check.
- ncallaway 9y ago
  No thanks! I'm going to put it into a savings account or low risk investment, and write a check to the US Treasury at a time when I have more faith in the federal government.
  - coolso 9y ago
    So... you do want the huge tax break then? Hopefully you'll consider donating at least some (perhaps even all) of that tax break money to a homeless shelter or a food bank, maybe an animal shelter as well, especially this time of the year. That would definitely make that money go much further than it would if you paid it in taxes or sent it to the Treasury, be it this year or 10 years from now.
otoburb 9y ago
I thought an LLC can elect to be taxed as a pass through entity also (sole proprietorship or partnership-equivalent for tax purposes), so they might also be included.