The DMV is so insidious. They are allowed to tax used property sales.

Discussion in 'General Motoring' started by LovingPerson, Feb 24, 2004.

  1. LovingPerson

    DTJ Guest

    Yes it could, back before the Reagan years!!!
     
    DTJ, Feb 27, 2004
    #61
  2. You haven't checked the rules since the 1980s. Sales tax hasn't been deductible on US federal income
    tax for about 2 decades. Gone are the days of saving every receipt in a shoebox (remember that?) to add
    up that sales tax at the end of the year.
     
    Wendy Marshall, Feb 27, 2004
    #62
  3. LovingPerson

    Steve Guest

    Steve,
    Dude, you SERIOUSLY need to bump up your W-4 deductions (assuming they
    let you -- here in Michigan, they don't :( ).
     
    Steve, Feb 27, 2004
    #63
  4. Contrary to your assertion that people who don't itemize are getting something
    they are not "actually entitled to," tax code makes it clear that they are
    entitled to, by law.
    I read just fine, thagnk you.
    That's right. You will note that I mentioned exactly this in my earlier
    statement.
    Your are entitled to the highest deduction that the law allows. For some, the
    highest deduction is the standard deduction, for others, it is their itemized
    deductions.
    With the standard deduction, expenses are not relevant. Think of the standard
    deduction as a way of reducing everybody's adjusted income at least x dollars.
    The tax code is a composite of credits, deductions, rates, etc. People are
    entitled to what the law permits.
    If that's what you think, buddy, you sure screwed up. Care to try to explain
    your creative reasoning?
     
    Wendy Marshall, Feb 27, 2004
    #64
  5. | On Thu, 26 Feb 2004 02:34:38 GMT, "Matthew S. Whiting"
    |
    | >Steve Barker wrote:
    | >> And as I stated in my email, you are wrong. It doesn't "SEEM" anything.
    We
    | >> have to claim last years refund as this years income on the state return.
    | >> Just as stated before. There also is no deduction from the federal return
    | >> for the state tax.
    | >
    | >
    | >If you itemize deductions on your 1040, then you can claim state taxes
    | >as a deduction.
    |
    | Further, if you don't itemize, you get the standard deduction, which
    | is far higher than most people are actually entitled to.

    Huh?! Your statement doesn't make sense. Tax law says that most people ARE
    entitled to the standard deduction, otherwise the official IRS forms/worksheets
    would not have been designed as such. Or is it more your opinion that "most
    people" are not entitled to the standard deduction amount? (legally they are
    though) If it's your opinion (and that's fine), what is the basis for your
    opinion on that?
     
    James C. Reeves, Feb 27, 2004
    #65
  6. LovingPerson

    Steve Barker Guest

    Why?? So I can owe them each year? Yes, I know, I could make better use of
    the money, but for us it has worked well to be able to buy something nice
    each year, where as if we changed the deductions, then we wouldn't save, and
    we'd have nothing except a tax to pay each april. I like it this way. But
    I understand your point.
     
    Steve Barker, Feb 27, 2004
    #66
  7. Well you can pay them now or you can pay them later. But remember the time
    value of money. Why pay them now and let the government play with your money
    before you have to?

    Why do you need the government to make you save? Why not just save? :)
     
    Wendy Marshall, Feb 27, 2004
    #67
  8. LovingPerson

    satyr Guest

    Except if you have a small business you can write off the Hummer in
    the first year. No need to show that the business needs a Hummer as
    opposed to a subcompact that could not be written off so quickly.
    Supposed to be used only for business but I would guess that these
    things see a lot of personal use.
     
    satyr, Feb 27, 2004
    #68
  9. If you don't have the discipline to save and invest the money, then
    letting the IRS hold onto for free is probably better than blowing it.
    However, if you changed your withholdings, took the difference and
    invested it, you could buy something even nicer each year as you'd have
    the money, PLUS the interest it earned over the course of a year.


    Matt
     
    Matthew S. Whiting, Feb 27, 2004
    #69
  10. LovingPerson

    Dick C Guest

    James C. Reeves wrote in rec.autos.misc
    I think it was poor wording on his part. What I think he means is that
    the standard deduction is higher than most people are entitled to by
    itemising their deductions.

    --
    Dick #1349
    Damn it . . . Don't you dare ask God to help me.
    To her housekeeper, who had begun to pray aloud.
    ~~ Joan Crawford, actress, d. May 10, 1977
    Home Page: dickcr.iwarp.com
    email:
     
    Dick C, Feb 27, 2004
    #70
  11. LovingPerson

    Steve Guest

    Right on! Thanks, Matt.

    Or, Steve, if you're going to give someone a free loan, give it to your
    kids, or parents, or siblings, or an enterprising young person you know.
    There are MANY better places for YOUR money, if you just want to give it
    away!!! :)
     
    Steve, Feb 27, 2004
    #71
  12. He's also welcome to send it to me each month and I'll hold onto through
    the year for him and then send it to him around April 15th of the
    following year.


    Matt
     
    Matthew S. Whiting, Feb 27, 2004
    #72
  13. LovingPerson

    Kirk Kohnen Guest

    A note of irony: We're using the internet (ne ARPAnet) which was developed
    at government expense to gripe about the government not giving us anything
    useful for our money.
     
    Kirk Kohnen, Feb 28, 2004
    #73
  14. LovingPerson

    satyr Guest


    That's right. Sales tax as an itemized deduction was eliminated by
    one of the Reagan tax cuts. Interest on consumer debt also became
    non-deductable.

    State Income tax remains deductible. That is because it is neutral or
    progressive in how it varies with income levels. To understand how
    tax decisions are being made in this country, all you have to do is
    look at how progressive or regressive each tax is.


    Progressive Taxes
    (shift burden to rich) Current Trend

    Earned Income tax (Fed) Decreasing and becoming less progressive
    Luxury tax Eliminated
    Cap Gains tax Decreasing, calls for elimination
    Dividend tax Decreasing, calls for elimination
    Estate tax Being eliminated
    Real Estate tax Increasing (proceeds to local
    schools, services)
    Business income tax Decreasing
    Wealth tax What's that?



    Regressive Taxes
    (shift burden to
    poor/middle) Current Trend

    Social Security tax Increasing, Benefits decreasing
    Medicare tax Increasing
    Sales tax Steady to Increasing
    Use taxes Steady to Increasing
     
    satyr, Feb 28, 2004
    #74
  15. However the loophole is that you can take a loan out on your home and
    pay off the consumer debt then deduct the interest.
    You forgot the state lotteries. Studies show that the poor play the lottery
    a lot more than the rich do, probably because they can't afford to run
    to Vegas to do their gambling, or they don't understand odds or some such.

    Ted
     
    Ted Mittelstaedt, Feb 28, 2004
    #75
  16. The truth is, though, that the standard deduction is a fiction.

    What the government does is not unlike a retailer, they give you a series of
    fat credits, like the standard deduction, exemptions, etc. then they jack up
    the percentages in the tax tables. So people end up paying them what they
    want, but the stupid ones are conned into believing that just because they
    are
    married, or have a lot of kids, or some such, that they are "getting"
    something
    from the government via the tax exemptions/deductions/etc.

    There's really only a few ways that an ordinary person can really and truly
    reduce the amount of money they pay the government. One way is to
    buy a house and carry enough of a mortgage on it that the interest written
    off exceeds the standard deduction - once that happens you can then
    take advantage of a whole collection of pork barrel writeoffs that various
    special
    interest groups have inserted in the tax code. Another way is to save via
    an IRA. And another way is to run a business out of your home. But
    beyond that, the loopholes that regular people can take advantage of have
    pretty much been completely removed.

    Ted
     
    Ted Mittelstaedt, Feb 28, 2004
    #76
  17. But, depending on your tax bracket, you pay 3 dollars or more in
    interest to save a dollar on your income tax. Hardly a great trade.
    Can you outline some of these pork barrel write-offs as I have a large
    mortgage and am able each year to easily itemize, but I sure haven't
    found all of these write-offs you allude to.



    An IRA is a pretty good deal that most should take advantage of, but
    often don't. Few Americans really have any saving discipline at all.


    Matt
     
    Matthew S. Whiting, Feb 28, 2004
    #77
  18. LovingPerson

    Bill Putney Guest

    That's why the lottery is called a tax on people who are bad at math.

    Perhaps you've hear it said that the chances of winning the lottery are
    similar to knowing someone that lives in New York City, but no clue as
    to where within the city, then picking a house totally at random
    anywhere in the city, knocking on the front door, and the person who you
    were looking for answers the door. Hard to imagine a person too stupid
    to understand that, but there must be plenty of 'em.

    Bill Putney
    (to reply by e-mail, replace the last letter of the alphabet in my
    address with "x")
     
    Bill Putney, Feb 28, 2004
    #78
  19. LovingPerson

    Dave C. Guest

    ">
    Well that's one way to look at it. Another way to look at it is that
    someone is going to win. There's no way you can control who wins, but there
    is one sure way to control who does NOT win. -Dave
     
    Dave C., Feb 28, 2004
    #79
  20. LovingPerson

    Bill Putney Guest

    If that's a justification for playing, that's pretty lame - see "tax on
    people who are bad at math" in my earlier post.

    Bill Putney
    (to reply by e-mail, replace the last letter of the alphabet in my
    address with "x")
     
    Bill Putney, Feb 28, 2004
    #80
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