March 15 sneaks up on me every year. I'm trying to not let it this year so I'm doing a little prelim and getting my ducks in a row. I hope ev erybody else had as good a year as I've had.
From my two largest clients only I have prepared over 200 R/W exhibits with descriptions, recorded at their respective County. I have provided recorded R/W documents for 25 projects involving road widening and infrastructure improvement. The shortest was 3/4 mile, the longest 9 miles. The least number of R/W parcels within these 25 was 3; the most was 67. I also either provided topo, staking or R/W preparation, or all three, on 8 transmission line projects ranging from 1 mile in length to 17 miles.
I knew I had been pretty busy, but I didn't realize this was all done in the calendar year of 2015.
I should slow down in 2016. I promised Money Penny I would...:snarky:
April 17 will come soon enough whether or not I am ready for it. I detest the mechanics but find the Tax Guide to be fascinating reading. Normally I love negative numbers but I've decided 2015 will be one for the plus column for a change.
Holy Cow, post: 351258, member: 50 wrote: ...I detest the mechanics but find the Tax Guide to be fascinating reading...
That's, uh..., weird..You could chase me to Phoenix on a dirt road with a Tax Guide...
I wish I could get interested in the bookkeeping end of things...but I just can't. That's why I pay people good money to read it for me! :pinch:
I pay TurboTax to read that stuff for me.
The important part is to develop a feel for all of the ins and outs and how you can become more profitable through the proper application of the advantages offered. About 95 percent of the Tax Guide stays somewhat consistent from year to year with minor tweaking. You need to be aware of how to use the Guide to work for you. The other five percent is the Mickey Mouse stuff pushed through by various congressmen and bureaucrats to reward specific individuals. This really hits home when you read the special instructions for some tax form that specifies that to qualify for the XYJFR exemption you must meet the following criteria: been a year long resident of Fort Worth, Texas, have a minimum gross adjusted income become $840,000 and $1,984,500, qualify as a married filing separately and have at least four dependents. Don't laugh, there are little things like that floating around out there but buried deeply enough that the casual tax filer never knows about them.
SWMBO brought me her shoebox full of paperwork yesterday.
For the past 12yrs she has waited until March 1st.
TurboTax time is just around the corner
I love those 42 page reports, lol.........
To become successful at something one needs to understand the rules. So, if you wish to become successful at hanging onto YOUR money you need to become personally knowledgeable of the rules. Most who have 90 percent or more of their income being verified by W-2's still have some ability to modify where there money goes. Those for whom W-2's are non-existent need to become proficient at handling money as they may have twenty times more pass through their hands than the fraction for which they may owe taxes.
Holy Cow, post: 351307, member: 50 wrote: To become successful at something one needs to understand the rules. So, if you wish to become successful at hanging onto YOUR money you need to become personally knowledgeable of the rules. Most who have 90 percent or more of their income being verified by W-2's still have some ability to modify where there money goes. Those for whom W-2's are non-existent need to become proficient at handling money as they may have twenty times more pass through their hands than the fraction for which they may owe taxes.
Sounds like somebody who may have made a few end of year tractor or combine purchases 🙂
Eddy,
That is an important part of the process for sure. First, you need to know where you are for the year no later than the first of November. That gives you two months to plan purchases before year end of deductible items or, in the reverse case, to consider finding ways to increase income before year end. In your example involving agricultural pursuits, one may evaluate taking a profit this year from stored crops or waiting until next year. If the prices are holding relatively stable, the impact on your taxes may be more important than waiting for a higher market price. If you have some relatively unused equipment that you are probably going to sell any way, it can be to your advantage to move that income into this year by selling now. I realize most people assume it is always good to postpone income. Generally, that is true unless there are other factors involved. One common case is where a spouse has had little or no income this year but will be starting a high-paying job next year. Why move the income into a future year where those dollars may be taxed at a significantly higher rate.? Always view NEW dollars as being the ones that move you up the chart to find total tax due. They aren't really average dollars. They are the one that influence that final rate. They also may move you above a certain critical figure in being eligible or ineligible for some specific tax-related opportunity. Imagine earning an extra $100 that moves you into a category that prevents you from getting a $2000 tax break. It happens to people every year who have no concept of what the Income Tax Booklet is telling you.
Jim Frame, post: 351261, member: 10 wrote: I pay TurboTax to read that stuff for me.
I switched to Tax Act last year. I am pleased. Similar to TT.
Holy Cow, post: 351315, member: 50 wrote: ....That is an important part of the process for sure. First, you need to know where you are for the year no later than the first of November. That gives you two months to plan purchases before year end of deductible items or, in the reverse case, to consider finding ways to increase income before year end..
It is definitely a process that occurs on a planned vector. My comparison is it is like landing an aircraft. By November you need to be turning final and know exactly where on the runway you want your gear to touch. Hopefully you have a qualified pilot.