Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

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Archive for January, 2009

Posted by taxguru on January 19, 2009

Posted in comix, Geithner | Comments Off on

Posted by taxguru on January 19, 2009

Posted in comix, IRS | Comments Off on

Posted by taxguru on January 18, 2009

From Byron York at NRO:

More Questions About Geithner – Additional info, casting doubt on the “innocent mistake” defense that the media are providing for Geithner’s tax returns.

Geithner Can’t Explain His Failure to Pay Taxes

 

Due Diligence on Geithner – The National Review editors call for the GOP to vote against confirming Geithner.  Based on the GOP’s current posture of rolling over for anything 0bambi wants, the chances of any real opposition are virtually nil.

From Accuracy In Media:

Why Are the Media Protecting Geithner?

The Big Money Behind Geithner

 

Posted in Geithner | Comments Off on

IOUs From the PRC

Posted by taxguru on January 16, 2009

Anyone hoping to spend a California tax refund should give up on that plan, or at least be very patient. According to this news release from Spidell, they are so broke in Sacramento that they will be delaying paying out tax refunds for at least 30 days.

Of course, as always, this is a one way street. Any taxes owed to the PRC must be paid in immediately or you will be faced with serious consequences.


Posted in StateTaxes | Comments Off on IOUs From the PRC

More jokes about the new Treasury Secretary

Posted by taxguru on January 16, 2009

Anyone who follows politics knows that if this were a GOP nominee, he would have already pulled his name from consideration. Since he is with the party that has no ethical standards, and the media are doing their job of covering for him, he should have smooth sailing into power. In the meantime, he has replaced Wesley Snipes as the new face of idiotic tax moves.

From Scott Ott:

Bush Offers to Pre-Pardon Obama Treasury Pick

From Jay Leno via NewsMax:

At his confirmation hearing, Attorney General nominee Eric Holder said that as far as he is concerned, waterboarding is torture. And Treasury Secretary Tim Geithner said, “So is paying taxes.”

Geithner didn’t pay federal taxes from 2001 to 2004. He owed $34,000. But to keep his nomination afloat, he paid it this week — plus another $8,000 in interest. So that’s $42,000 the U.S. Treasury made — just like that. You know what Obama should do now? He should appoint Willie Nelson as commerce secretary. What does he owe, $28 million?


(Click on image for full size)

Posted in comix, Geithner, humor | Comments Off on More jokes about the new Treasury Secretary

Posted by taxguru on January 15, 2009

From Jay Leno via NewsMax:

Obama says that he wants to bring a “sense of accountability” to Washington. I have a better idea — why not bring some accountants to Washington?

Speaking of that, Obama’s new secretary of the Treasury nominee, Timothy Geithner has come up with a new plan to lower taxes: Don’t pay them.

 

Posted in Uncategorized | Comments Off on

The IRS’s new OverLord…

Posted by taxguru on January 14, 2009


Geithner Accepted IMF Reimbursement for Taxes He Didn’t Pay
– Byron York seriously explains the problem.

Scott Ott of Scrappleface explains how the incoming Treasury Secretary can solve all of the country’s economic problems, but can’t file a proper tax return.

Posted in comix, Geithner, Obambi | Comments Off on The IRS’s new OverLord…

Posted by taxguru on January 14, 2009

Posted in comix, TaxCuts | Comments Off on

aka Creative Accounting

Posted by taxguru on January 14, 2009

Posted in Accounting, comix | Comments Off on aka Creative Accounting

Calculating Sec. 179 Tax Savings

Posted by taxguru on January 14, 2009

Q:

Subject: Section 179 Suggestion

Hello Kerry,

I came across your site here today trying to make heads or tails of my deductions for a store I just opened. I found your explanation to be quite clear and easy to understand over the IRS one. I didn’t completely understand the cut off for vehicles. Thank you.

I also have a suggestion. I think it would be great if you added a calculator for section 179. I found a good one that helped me as well here. I think it might help others as well to get an estimate on what their deduction will be. I hope this was of help.

Have a nice day,

A:

I’m glad you found my info on Section 179 to be informative. It is meant to just be a starting point. Any actual calculations should be handled by your own professional tax advisor who can factor in the other criteria that will determine the actual expected tax savings. No online calculator can do a decent job of that kind of analysis.

For example, the one that you referred to is dangerously simplistic and incomplete in the information it works with and is really nothing more than a sales tool to make it appear that equipment costs less than it actually does. When I entered the figure of $100,000 in the Cost of Equipment box, it automatically assumed a tax savings of $35,000 for a net cost of $65,000. It didn’t take into consideration some critical factors that could seriously limit the actual Section 179 deduction, such as how much other equipment was acquired during the year and the level of Taxable Income before any Sec. 179 deduction.

I don’t mean to be harsh here, but one of the biggest mistakes I see constantly is people believing they can function in business without the assistance of an experienced professional tax advisor. While you may think this quick and easy calculator is helping you, it is almost certainly giving you the wrong information unless you are making huge profits and are in the 35% Federal tax bracket. Again, not to be cruel, but anyone making that kind of money is insane and financially irresponsible to try to navigate the tax waters on their own.

I’m sorry to dump on you here, but you pushed a button that needed expressing.

Good luck.

Kerry Kerstetter

TaxCoach Software: Finally! Plain-English Tax Planing That Builds Your Business!

Posted in 179 | Comments Off on Calculating Sec. 179 Tax Savings