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Do law firm partners use personal LLCs to write off their cars and shit?
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Date: October 17th, 2017 7:23 PM Author: Beady-eyed Casino Elastic Band Please explain to a non-taxmo (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465811) |
Date: October 17th, 2017 7:24 PM Author: Ruddy effete native associate you mean s-corp PC's.
attorneys cant be LLCs. no limited liability shields.
but yes. |
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Date: October 17th, 2017 7:29 PM Author: soul-stirring mauve shitlib pervert you know of biglaw partners who signed their biglaw partnership agreement using an entity? (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465859) |
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Date: October 17th, 2017 7:32 PM Author: Ruddy effete native associate it depends on the biglaw partnership. some firms seem to allow it, others dont.
some biglaw firm lawyers even have a ", P.C." after their name on their firm bios |
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Date: October 17th, 2017 7:34 PM Author: soul-stirring mauve shitlib pervert wow, that would be huge for self-employment tax purposes (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465896) |
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Date: October 17th, 2017 7:36 PM Author: Ruddy effete native associate not a tax MFE or a partner, but isnt a partner's draw not treated as w2 income anyway? (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465920) |
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Date: October 17th, 2017 7:37 PM Author: laughsome chestnut senate hominid If he’s a “partner” it should show up on a schedule K
Flow that shit through to an s-Corp, slide and let do |
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Date: October 17th, 2017 7:38 PM Author: soul-stirring mauve shitlib pervert Cr. it would flow up to his S corp, where he would then pay himself a 'reasonable' salary much lower than the amount distributed to him from the partnership and only pay self-employment tax on that salaried amount.
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Date: October 17th, 2017 8:10 PM Author: histrionic whorehouse Which works great until the first audit. The IRS says that lawyers can't do this. Reasonable salary for us = the whole nut. Same for doctors. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466207) |
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Date: October 17th, 2017 8:13 PM Author: Ruddy effete native associate irs doesnt say this. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466220) |
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Date: October 17th, 2017 8:13 PM Author: laughsome chestnut senate hominid i thought that rule was for c-corps though. Personal holding corporations.
Might be wrong though, feel free to educate me |
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Date: October 17th, 2017 9:54 PM Author: flushed unholy theatre mood (lol @ Are Reptile's SPS legal analysis getting shouted down by actual lawyers) (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466955) |
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Date: October 17th, 2017 10:01 PM Author: laughsome chestnut senate hominid Yeah he’s done here. Tried to play outside his 25% tax bracket (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34467028) |
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Date: April 2nd, 2018 10:18 AM Author: Beady-eyed Casino Elastic Band (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#35742815) |
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Date: October 17th, 2017 7:38 PM Author: Ruddy effete native associate i assume what's exactly the idea. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465940) |
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Date: October 17th, 2017 7:35 PM Author: Appetizing Maniacal Persian Some put it on their pleadings too (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465905) |
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Date: October 17th, 2017 7:38 PM Author: Ruddy effete native associate Morty R. Weisenberg, P.C. Alvin J. Schwartz, P.C. DLA PIPER P.C. |
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Date: October 17th, 2017 7:41 PM Author: Appetizing Maniacal Persian Always wondered if this is even arguably legally necessary or just showing off dat equity (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465962) |
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Date: October 17th, 2017 7:58 PM Author: Ruddy effete native associate i dont think the pleading needs to state this shit. the idea is that you're not holding yourself out to people you do biz with that there's a corp shell (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466102) |
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Date: October 17th, 2017 8:33 PM Author: French impressive locale I think the P.C. statute says you have to identify yourself as a PC. Just like the firm has to say LLP. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466349) |
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Date: October 17th, 2017 9:30 PM Author: Ruddy effete native associate where do we draw the line?
does every thanks email to the client have to say
thanks, morty PC |
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Date: October 17th, 2017 8:06 PM Author: French impressive locale It works if the flag has gold fringe, so they know you mean the lawyer the sovereign man and not the straw man. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466197) |
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Date: October 17th, 2017 8:12 PM Author: French impressive locale Link? (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466216) |
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Date: October 17th, 2017 8:22 PM Author: Appetizing Maniacal Persian https://www.kirkland.com/sitecontent.cfm?contentID=220&itemID=7800 (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466278) |
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Date: October 17th, 2017 8:30 PM Author: French impressive locale That's crazy. I guess the statute says a person can serve as a partner in a LLP and an s-corp is a "person," but I wonder what kind of restrictions the partnership agreement imposes on this. (Like is it harder to claw back from a P.C. than a person if needed? How does capital contribution work, etc.) (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466335) |
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Date: October 17th, 2017 9:53 PM Author: greedy indian lodge doesn't this basically let u know which ones are the kirkland equity partners and which are just super senior associates? (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466950) |
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Date: October 17th, 2017 9:54 PM Author: Ruddy effete native associate PC means they're equity, but absence of a PC is indeterminate. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466959) |
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Date: October 17th, 2017 9:54 PM Author: Appetizing Maniacal Persian yes (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466960) |
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Date: October 17th, 2017 9:55 PM Author: insanely creepy flickering shrine weed whacker yup (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466966) |
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Date: October 17th, 2017 10:57 PM Author: stubborn location MISINFORMATION ALERT. Plenty of equity partners don’t have p.c in their titles (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34467559) |
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Date: October 17th, 2017 11:00 PM Author: greedy indian lodge (Kirkland 12th year) (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34467580) |
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Date: October 18th, 2017 6:30 PM Author: Beady-eyed Casino Elastic Band this is what I was talking about (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34473837) |
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Date: October 17th, 2017 8:14 PM Author: Primrose filthpig space There are professional LLCs out there. They just don't absolve the practitioner of his malpractice exposure. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466225) |
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Date: October 17th, 2017 8:15 PM Author: Ruddy effete native associate i suppose it depends on the state, then.
i've seen "PLLC" sometimes. mfh doesnt have them |
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Date: October 17th, 2017 8:22 PM Author: Primrose filthpig space They are available in New York. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466275) |
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Date: October 17th, 2017 8:32 PM Author: Ruddy effete native associate well, then. i dunno why mfh biglawyers are all PC's (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466347) |
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Date: October 17th, 2017 8:34 PM Author: Primrose filthpig space There are plenty of LLPs. Or are you talking about single attorneys and not law firms? (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466356) |
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Date: October 17th, 2017 8:35 PM Author: Ruddy effete native associate yes, i'm talking about a single attorey (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466364) |
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Date: October 17th, 2017 7:28 PM Author: Erotic sweet tailpipe party of the first part i think earl looked into this stuff (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465854) |
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Date: October 17th, 2017 7:30 PM Author: insane supple pocket flask university Stew is a write off? (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465862) |
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Date: October 17th, 2017 7:33 PM Author: Ruddy effete native associate (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465885) |
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Date: October 17th, 2017 7:35 PM Author: floppy slate church building (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465906) |
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Date: October 17th, 2017 7:43 PM Author: violent stage (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465970) |
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Date: October 17th, 2017 8:20 PM Author: olive know-it-all market (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466265) |
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Date: October 17th, 2017 7:34 PM Author: laughsome chestnut senate hominid If they aren’t retarded, yes. They make enough that the expense looks reasonable (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34465898) |
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Date: October 17th, 2017 7:52 PM Author: vivacious saffron mental disorder You can't just randomly expense a car lmao. If you got audited you'd be fucked.
Is this how xo proles think the rich live? Expensing all of their expenses and not paying taxes? |
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Date: October 17th, 2017 8:01 PM Author: Ruddy effete native associate tbf, that's how the rich live. w2 wagecucks lose out on so many deductions.
i have no idea about cars, but every biglaw partner is writing off a portion of his westchester mansion as a "home office"
and they're all writing off every single meal and bar receipt. they're always with SOME buddy who is an attorney or potential client so it's arguably a biz meal. although there's only a 50% deduction. |
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Date: October 17th, 2017 8:21 PM Author: tripping internal respiration dragon wow! (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466270) |
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Date: October 17th, 2017 8:58 PM Author: vivacious saffron mental disorder Home office, sure. And probably a lot of meals, but no, there is not always SOME buddy who is an attorney or potential client at every meal or bar.
Lawyers are risk averse as fuck so I doubt most take deductions they have no defense of if audited. |
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Date: October 17th, 2017 9:06 PM Author: Ruddy effete native associate who are biglaw partners socializing with? lawyers and other professionals (bankers, consultants, etc.) all of them is a potential client. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466589) |
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Date: October 17th, 2017 9:20 PM Author: vivacious saffron mental disorder lol it doesn't work like that (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466685) |
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Date: October 17th, 2017 9:29 PM Author: laughsome chestnut senate hominid I get it now. You’re Agent Jenkins from the IRS. GTFO (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466758) |
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Date: October 17th, 2017 9:31 PM Author: Ruddy effete native associate it exactly works like that.
drinks w your law school buddy who is a partner at another firm = discussing cross-referrals, etc. |
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Date: October 17th, 2017 9:52 PM Author: vivacious saffron mental disorder I mean if you lie and say that's what all your meetings are about, sure. But if IRS sees you have 50 expensive "business dinners" a year, it's not gonna hold up if they actually look into it. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466944) |
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Date: October 17th, 2017 10:00 PM Author: laughsome chestnut senate hominid (Agent Jenkins playing good cop) (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34467022) |
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Date: October 18th, 2017 12:36 AM Author: cruel-hearted bull headed fat ankles toaster are you kidding? yes it is. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34468252) |
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Date: October 18th, 2017 12:41 AM Author: Copper Locus my wife’s an inhouse lawyer and we right off everything we do, from vacations to shows, as a business expense. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34468277) |
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Date: October 17th, 2017 8:02 PM Author: laughsome chestnut senate hominid Holy fuck you’re done here lmao (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466161) |
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Date: October 17th, 2017 8:04 PM Author: Ruddy effete native associate (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466182) |
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Date: October 17th, 2017 8:59 PM Author: vivacious saffron mental disorder (guy that thinks the rich "write off" their vacation homes) (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466544) |
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Date: October 17th, 2017 9:03 PM Author: laughsome chestnut senate hominid I know quite a bit more about what “rich people” do on their taxes than you do, wagecuck (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466569) |
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Date: October 17th, 2017 9:21 PM Author: vivacious saffron mental disorder lol im definitely not a wage cuck (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466687) |
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Date: October 17th, 2017 9:07 PM Author: Ruddy effete native associate they write off their vacations tho as "conferences" (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466590) |
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Date: October 17th, 2017 9:08 PM Author: laughsome chestnut senate hominid (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466599) |
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Date: October 17th, 2017 9:56 PM Author: vivacious saffron mental disorder yeah they won't hold up if audited, unless you can show the conference was actually the primary purpose of the trip. Going to Hawaii for 7 days for a small 6 hour conference that's available 50 miles from home as well isn't deductible. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466981) |
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Date: October 17th, 2017 9:59 PM Author: laughsome chestnut senate hominid (Agent Jenkins laying a honeypot) (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34467020) |
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Date: October 17th, 2017 9:18 PM Author: Sienna karate menage I don't believe there is an advantage to using an S-corp over a C-corp.
A C-corp allows you as a company with one employee to create a health benefit plan which pays for 100% of the out of pocket expenses of the employee (me) and his spouse (my wife). So basically all co pays, glasses, sunglasses, and pharmacy stuff is purchased by the corporation.
you pay your car lease with your corporation, together with insurance and gas and maybe allocate 10% of the cost to personal use. After all my BMW is the company car. My wife's prius is the personal car. Gas for both cars goes on the corporate credit card.
I don't deduct my home office since I don't want to fuck around with my mortgage interest deduction.
The corporation does pay for home internet, cell phone plan, all cell phones, all tablets, all computer equipment, office furniture, a safe for all my guns plus some work papers, etc.
Corporation pays for 50% of all business meals which are basically all meals over $80.
Corporation pays for some travel - not vacations with wife to hawaii, but basically whenever I go anywhere there is a potential client to speak to and take to lunch.
I figure its good for $30K-35K in business expenses this year - which is low but I don't spend that much. My corporation pays me $160K in salary which covers the mortgage and all other living expenses. At the end of the year I will need to gross out the pay after taxes for the year and cut myself a check for the rest. On december 31 my c-corp closes its books with $0 profit and only the initial investment of $5,000 I made in the account. |
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Date: October 17th, 2017 9:21 PM Author: laughsome chestnut senate hominid YNYYYY I like this structure
The fact that you end in a wash down to the initial investment does increase your audit risk though. They want to pwn you at the corporate level too. |
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Date: October 17th, 2017 9:23 PM Author: Sienna karate menage it's a professional corporation called "Earl Manigoat, P.C." - I think the IRS knows what kind of corp it is an they always wash out.
No professional corporation pays corporate tax. Except for the medical expenses I think all of those business expenses I could take without the corporation.
However, $35,000 in business expenses would probably put me in the top 10% of the individual filers, putting me at moderate audit risk. $35,000 in business expenses is probably the bottom 1% of C-corp expenses. |
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Date: October 17th, 2017 9:28 PM Author: laughsome chestnut senate hominid Audit risk doesn’t really matter anyway as long as you have documentation. Everyone has an automatic audit risk anyway.
I have both entities right now. An s-corporation that owns interest in several different partnerships so I pay a salary and flow the rest of the money through, and a c-corporation that owns my income properties. I like the idea of a health benefit plan because right now the c-corp is just sitting there with cash in the bank. Any other advice as a c-Corp haver? |
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Date: October 17th, 2017 9:47 PM Author: vivacious saffron mental disorder Read rules for deducting "company car" expenses. He would be fucked on his car if he got audited. Probably same for all of his home electronic expenses as well. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466894) |
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Date: October 17th, 2017 9:48 PM Author: laughsome chestnut senate hominid STFU Agent Jenkins (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466907) |
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Date: October 17th, 2017 9:50 PM Author: vivacious saffron mental disorder I mean if you don't get audited you have nothing to worry about. But don't act like its all done within the rules. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466929) |
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Date: October 17th, 2017 9:51 PM Author: laughsome chestnut senate hominid (Agent Jenkins running false flag flame) (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466936) |
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Date: October 17th, 2017 9:35 PM Author: Ruddy effete native associate your audit risk is much less as a corp than on a schedule C, apparently. i guess the IRS is more skeptical of schedule C filers and thinks corps are inherently more reliable (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466807) |
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Date: October 17th, 2017 9:33 PM Author: Ruddy effete native associate ljl this is goyishe
>>Corporation pays for some travel - not vacations with wife to hawaii, but basically whenever I go anywhere there is a potential client to speak to and take to lunch.
there are confs in hawaii all the fucking time. you can easily figure out how to write off your HI trips. |
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Date: October 17th, 2017 9:40 PM Author: soul-stirring mauve shitlib pervert How does your medicare tax work-- only on the 160k? (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466849) |
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Date: October 18th, 2017 12:40 AM Author: Sienna karate menage i pay myself the balance of my comp as a end of year bonus, so medicare is paid on all of that sadly. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34468268) |
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Date: October 17th, 2017 9:48 PM Author: Ruddy effete native associate btw, you have to allocate your home internet, cell phone, etc. you should at least allocate it at 90% (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466905) |
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Date: October 17th, 2017 9:29 PM Author: electric dilemma Yeah. All the time. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466761) |
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Date: October 17th, 2017 9:50 PM Author: Low-t lay mad-dog skullcap They just WRITE IT OFF, JERRY! (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34466927) |
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Date: October 17th, 2017 9:57 PM Author: insanely creepy flickering shrine weed whacker "...but they do, and they're the ones writing it off"
lmao |
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Date: October 17th, 2017 10:07 PM Author: soul-stirring mauve shitlib pervert (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34467054) |
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Date: October 18th, 2017 12:41 AM Author: cruel-hearted bull headed fat ankles toaster health insurance / healthcare and retirement accounts are where you really cash in with self-employment. the car, meals, the incidental expenses like internet and computers, the occasional family vacation you write off because you attended a conference for half a day, they're ok, but the real significant value is in the first two categories. (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34468276) |
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Date: October 18th, 2017 10:28 AM Author: Passionate Pit This is almost exactly like those "free man on the land" types who rant about their corporate personhood and actual personhood, except we make fun of those guys. They must read threads like this and wonder what the fucking difference is (http://www.autoadmit.com/thread.php?thread_id=3767092&forum_id=2#34469584) |