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To: amorphous

Maybe 33%. But then there is sales tax. And the tax deduction is only if there was a profit. Many farmers are having a bad year, again.


You don’t know what your are talking about

32% fed income tax

15% Self employment tax

8% state tax income tax

ok, I rounded up, just easier that way.

Bottom line, do you want $37,000 in the bank or a “$75,000 pickup. 45% discount drives a lot of decisions. Whether they are good decisions is another matter.


50 posted on 07/08/2020 11:19:33 AM PDT by PeterPrinciple (Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
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To: PeterPrinciple
Not everyone who needs a new pickup will fall into the highest tax bracket. A 33% deduction figure, if eligible under 179, assuming you actually made a profit in the particular endeavor you're making the deduction against (whether farm or business,) is a good rule of thumb. As for your other question; I prefer things I need verses excess dollars in a bank, created out of nothing, and taxed every time they change hands. Many states also have tax brackets. The self-employment tax and alternative minimum tax are separate considerations, of course.

Kudos for taking all into consideration tho. Most folks only think of federal income taxes when considering costs.

53 posted on 07/08/2020 11:56:23 AM PDT by amorphous
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