New Sales Tax Deduction/Ajdustment to Income

[jake75]

This survived the House-Senate Compromise. The original Senate provision allowed this for purchases 11-12-08 thru 12-31-09. I have not seen any reference to the effective date in the compromise bill. Anyone here know? If effective for that period in 2008 IRS will have to tell us how to report as the 2008 Tax Forms cannot now be changed. The deduction of auto loan interest did not survive. Of course those with equity in their home can deduct auto loan interest IF they finance using a home equity loan. The rich get rich and the poor get poorer. I always thought that the best system would be no interest paid be deductible and interest received be tax free.

[KNINE]

Ironic how Big Brother will throw money at the auto manufacturers to keep them afloat, yet won't let his subjects deduct the intertest from auto loans as incentive to buy the cars. It's like he wants to keep his labor union children employed, but doesn't want the companies to make a profit.

[jake75]

I just was told by a reliable source that the effective date for the new car sales tax deduction/adjustment to income is Jan 1, 2009 to Dec. 31, 2009.There are income limits - only for singles with AGI under $75,000 and couples under $150,000.

[jake75]

Now my "reliable source" is telling me that CCH is reporting the effective date of the new car purchase sales tax deduction is the date Obama signs the bill into law. Easy come, easy go!

[AKLGT]

or what about the home owners who's mortgages aren't being defaulted? what about the rest of us who PAY OUR FREAKING BILLS TOO??? why don't we get a tax break? I'm much rather see a $3000 tax credit for ALL home owners not in default than only $7500 to NEW home buyers, and now they're talking about $15K! FROM WHERE?? is that more money I gotta fork over to pay for them too???? NOTHING in the stimulus plan will affect me... NOTHING. I am self employed, not unemployed. I paid Cobra insurance all last year thru August when it expired, I don't get anything for that. What about MY health care coverage as a self employed and WORKING individual?? Ya, it sucks for those who lost jobs, but what about the rest of us trying to make a living and make ends meet? Then they want to put even more strain on small businesses like myself! Who's gonna bail ME out when I have to fire all my employees and close shop?

[jimincalif]

Quote, originally posted by AKLGT » NOTHING in the stimulus plan will affect me.Then they want to put even more strain on small businesses like myself! Who's gonna bail ME out when I have to fire all my employees and close shop? No kidding. Those of us who play by the rules, save money, start businesses, create jobs and pay taxes get screwed. "From each according to his ability, to each according to his need" was never more true than it is now.Unfortunately the stimulus bill will affect you, and me, even if they don't raise taxes to pay for it. It's called INFLATION, and it is only a matter of time. Look at the money supply figures. And inflation benefits net debtors (including the government) and penalizes savers.

[AKLGT]

true, i meant that I'm not going to benefit from it, but it will HURT me very much. more to pay in taxes this year. I'm doing my part, paying my bills, hiring people, but yet I'm going to be the one getting screwed. This almost makes me want to quit, close my business and go find some lame *** job. but I'd rather not.

[jimincalif]

Quote, originally posted by AKLGT » This almost makes me want to quit, close my business and go find some lame *** job. but I'd rather not.I don't blame you, you've already survived longer than many new businesses, so don't throw in the towel. And at least your in Alaska where the state govt is not quite the enemy it is here it Taxifornia. The Governator and legislature are about to hit the state with a $14 billion PER YEAR tax increase, and there is an article in the WSJ today about how states like CO, OR WA NV and AZ are advertising her and encouraging refugee businesses from CA. My partner and I just recently sold our business after starting it 25 yrs ago. I'll email you over the weekend with some info that might be helpful in thinking about your business, how to grow it and create value. Still have your msn email?

[AKLGT]

sure do. and yes, please give me any advice. It's greatly appreciated. I'm already looking to expand my current business so I can survive through these tougher times. But words of wisdom from a business veteran is welcome with open arms. Actually, we're pretty sheltered from most of the bunk in the states, I'm certainly glad I'm here and not in WA. Our economy is stable (for the most part) and even our real estate market. We still appreciated in value but not like it had been 2 yrs ago. the market is at a steady increase, not the crazy appreciation we saw a few years ago. My parents, in WA, didn't fair so well, and their house depreciated almost $100K in the last year, whereas ours appreciated about 10%.

[jake75]

Quote, originally posted by AKLGT »true, i meant that I'm not going to benefit from it, but it will HURT me very much. more to pay in taxes this year. I'm doing my part, paying my bills, hiring people, but yet I'm going to be the one getting screwed. This almost makes me want to quit, close my business and go find some lame *** job. but I'd rather not.1. You will get a $400 each credit for soc. sec. for 2009.2. You got $1,200 last year - remember?3. You got your Alaska dividend.4. As self employed sole proprietor - we do get a 100% adj. to income for medical/dental insurance though we have to pay FICA on the net before that adjustment.4. Are your employees 1099's, or W-2's.?

[AKLGT]

last year they were contracted workers, so 1099's. this year for 2009 I've converted everyone I wanted to hire as employees. and my AK dividend has nothing to do with the Stimulus check. and though we got the $1200 last year, I don't know if we will qualify for it this year.