primitives discuss tax loopholes

[franksolich]

http://www.democraticunderground.com/10022449296

Oh my.

xchrom (87,936 posts)    Sat Mar 2, 2013, 07:25 AM

Private Jet as Security Write-Off? 10 Most Insane Tax Loopholes

http://www.alternet.org/economy/private-jet-security-write-10-most-insane-tax-loopholes
 
***SNIP

1. CEO “private security.” A “ common corporate tax trick,” according to the New York Times, is corporate boards paying for private jets and other perks for their CEOs under the guise of security. As Steven Davidoff reported, typically CEOs would have to pay taxes on these benefits, but if the benefit is classified as necessary for security purposes, “the chief executive will pay a reduced tax bill or sometimes no tax at all.”
 
2. Florida cow scam. In Florida, wealthy developers, lawmakers and even some corporations game the tax code by placing cows on their land for a limited amount of time each year, thereby qualifying for agricultural tax breaks. Sen. Ben Nelson (D-FL) has benefited from this absurd loophole for years, as has Disney World. But Florida isn’t the only offender. From rock stars in New Jersey to movie stars in Colorado, tax breaks meant for farmers get gamed by the most privileged, using everything from sheep to beehives.
 
3. Facebook stock options. The social media giant Facebook made more than $1 billion in profits last year, but paid no corporate tax thanks to a huge write-off after its initial public offering. In fact, the company received a refund of $451 million. As Citizens for Tax Justice, explained, “Facebook’s income tax refunds stem from the company’s use of a single tax break, the tax deductibility of executive stock options.” This loophole will also allow Facebook to avoid more than $2 billion in taxes in future years. LinkedIn used the same gimmick to pay no federal taxes for the last three years.
 
4.Bluegrass boondoggle. This tax break, created by Senate Minority Leader Mitch McConnell (R-Kentucky) in 2008, gives wealthy horse owners a break worth $126 million over 10 years by allowing faster depreciation (quicker tax write-offs) of race horses. McConnell has defended the break by claiming it helps Kentucky’s “ farm economy.”

Yep, that's the way old Joe Kennedy paid less of a percentage in income taxes on his megamillions than did ordinary people during the heyday of the 91% maximum rate.

Singletrack rider (1 post)    Sat Mar 2, 2013, 08:52 AM

3. Horse depreciation comment

The racehorse depreciation should have been done 30 years ago. The fact is a race horse placed in service at any age won't have a racing career of 7 years. So why depreciate it over 7 years. 3 years is more in line with the life of the asset.
 
That said, I am no fan of the Turtle.

I have been in the thoroughbred industry for 30ish years. It's reputation as a sport of kings is misguided. Most folks in the business are small timers, working hard grooming and training their own horses trying to eek out a living.

Stinky The Clown (50,114 posts)    Sat Mar 2, 2013, 09:06 AM

5. Um . . . the D-FL Nelson is Bill. Ben is the D-NE guy.

Just sayin'

<<<was going to point this out at the original post, but then noticed the adroit sparkling old dude had already corrected the extra-chromosomal primitive.

otohara (21,296 posts)    Sat Mar 2, 2013, 10:05 AM

10. Governor Hickenlooper  [franksolich: a Dem] bought 200 acres of land in Parker. First he was going to use the "wood producing" loophole which only requires you sell a whopping $200 worth of wood ..but this loophole wasn't lucrative enough for my millionaire governor. Instead, he went for the fake farmer loophole and was paying only $400 in property taxes. We pay $1400 on our 1100 square home.
 
This loophole was closed last year. It took 9 years to close the loophole.

otohara (21,296 posts)    Sat Mar 2, 2013, 10:00 AM

9. Fake Farmer LH Was Closed in CO Last Year

it took 9 years to close it.

I was paying more property taxes on my tiny house than Tom Cruise [franksolich: a Dem] was paying on his $30 million dollar ranch in Telluride.

[Ralph Wiggum]

Um, #1 is not a loophole.  Sounds like a completely legitimate security expense to me, not a perk. (Speaking as an accountant)

[thundley4]

Um, #1 is not a loophole.  Sounds like a completely legitimate security expense to me, not a perk. (Speaking as an accountant)

I seem to remember the GM bigwigs flying private jets to DC when Obama was divvying up GM between the government and the unions.

[Dori]

I got news for you DUmmies.  Deducting mortgage interest is also a loophole.    Also, it's not just rich people that use agriculture for reducing their taxes. 
Oh, and one more thing.  If you had to use your car for your job or had to buy air line tickets, would you use them as a deduction if you weren't reimbursed?

How far are you willing to take this loophole thing?

[thundley4]

One man's loophole is another man's deduction. 

[GOBUCKS]

2. Florida cow scam. In Florida, wealthy developers, lawmakers and even some corporations game the tax code by placing cows on their land for a limited amount of time each year, thereby qualifying for agricultural tax breaks.

That's not a Florida scam, it's been done for years in every state. It isn't just for taxes. When large tracts are being bought up for things like new highways or schools, every patch of woods and weedfield becomes a cattle ranch until the eminent domain appraisal is finished.

The agricultural tax policies aren't loopholes, they make sense in 99% of all cases. Smoking out the ones that are scams would cost more than it's worth.

[RobJohnson]

What Facebook did was legal. It's not like Facebook has never paid taxes.

Did the DUmmies forget that liberals run Facebook? 

[JohnnyReb]

Democrats have the biggest loop hole of all.......they just don't pay taxes, period.

[RobJohnson]

Democrats have the biggest loop hole of all.......they just don't pay taxes, period.

Welfare benefits are not taxed? 

[Conservative Libertarian]

All that I know is that I will exploit all possible loopholes this year. With my wife having had surgery and chemo last year and this year and my son needed braces, my medical expenses are well above the standard deduction. They chopped the FSA in half this year which really sucks.

[RobJohnson]

All that I know is that I will exploit all possible loopholes this year. With my wife having had surgery and chemo last year and this year and my son needed braces, my medical expenses are well above the standard deduction. They chopped the FSA in half this year which really sucks.

Sounds like a tough year. I hope 2013 is better for your family.

[Conservative Libertarian]

Sounds like a tough year. I hope 2013 is better for your family.

Things are getting better for my wife. She is doing as well as possible right now. However, there is a financial hit with 0bama and company cutting flexible spending accounts (FSA) from $5K to $2.5K per year will effectively be a raise in taxes too.

The Dummies were in love with all of this shit too. They are stupid and EVIL SOBs.

[Karin]

cutting flexible spending accounts (FSA) from $5K to $2.5K per year

That was the stupidest move.  That really was a tremendous help to a lot of families.  It was cruel, actually, how the bastards did that.  I hope 2013 is better for you, as well. 

The DUmmies get confused and bent out of shape over depreciation deductions.  DUmmies, this is simply accelerated, it's not like a windfall.  There'll be less of a deduction in future years.  Oh never mind. 

[njpines]

Things are getting better for my wife. She is doing as well as possible right now. However, there is a financial hit with 0bama and company cutting flexible spending accounts (FSA) from $5K to $2.5K per year will effectively be a raise in taxes too.

The Dummies were in love with all of this shit too. They are stupid and EVIL SOBs.

This has pissed me off no end this year!   

Glad to hear your wife is doing better 

[Conservative Libertarian]

I thank all for the well wishes for my wife. I had another thread for that so I won't go into more of that in this thread.

As I am doing our 2012 taxes, I was able to stick in esitmated itemized deductions for various medical costs based upon my memory. I am collecting the actuals so that our return can be more accurate. From the estimates, I am well above the minimum threshold of 7.5% of gross. This is the fiorst time that I have ever had itemized medical expenses even come intp play on our return.

Also going through the pain of filing taxes for 2012 and seeing the differences that are already being seen in my check for 2013 is angering to say the least.  Adding the potential for a 20% pay cut on the horizon doesn't make things look good either. Of course, our Commie-in-Chief and his DUmmie worshippers are probably happy about it--EVIL SOBs!

[J P Sousa]

Funny how the DUmmies ignore the green energy loopholes.

 One week after he called on lawmakers to close tax-code loopholes that benefit specific industries, President Obama proposed one of his own — a tax break aimed at spurring the development of energy-efficient commercial buildings.

In doing so, Mr. Obama underscored the herculean challenge of simplifying the tax system in Washington, where loopholes are in the eye of the beholder.

http://www.washingtontimes.com/news/2011/feb/7/obamas-anti-loophole-call-gets-clean-energy-except/?page=all

  

One EPA policy however, has allowed fuel export companies to exploit a loophole in green energy distribution, and on Jan. 1, a finalized study showed that different rail companies used this loophole to siphon millions of dollars in government rebates without ever unloading the fuel shipment.

 â€œA cargo train filled with biofuels crossed the border between the US and Canada 24 times between the 15th of June and the 28th of June 2010; not once did it unload its cargo, yet it still earned millions of dollars.  

http://www.examiner.com/article/epa-loophole-green-energy-policy-allows-exporters-to-siphon-millions

[GOBUCKS]

That was the stupidest move.  That really was a tremendous help to a lot of families.  It was cruel, actually, how the bastards did that.  I hope 2013 is better for you, as well. 

It wasn't a stupid move if you're a democrat politician.

He knows that people who can fund a $5K account are never going to vote democrat anyway.