Quote:
Originally Posted by Dennis in MA
2. Tax break - FUDGE THEM! This was the biggest part of Simpson Bowles I wanted enacted. Basically I'm paying the moron to buy a 5x house. Because they get a tax break, I pay more. F that. It deludes them into thinking #1 above is do'able (and with a blip in their income, they can't afford the mortgage AND they have no tax break in the first place to fall back on).
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Whether you agree with it or not doesnt matter. It is in the tax code and likely not going away. At certain points, you start doing things for tax breaks.
I just had my taxes finished (starting next week I am out of the country until after tax date). There are many things I had to do to lower my taxable income legally.
Google Section 179 depreciation. I am not sure current year 179 rules, but in past year you could buy (if you were a small business owner) a $70-100+ k SUV (as long as it was GVWR of over 6000 lbs) and take 100% write-off (lowering you taxable income by that amount) in a single year? Straight line depreciation means that you could take 20% each year for 5 years. Why buy "average" when you can go whole hog and get a better tax write off?