Easiest way to cheat on your taxes?

[shmike]

Originally Posted by Krabill

I got divorced last year and loosing the deductions from being married bumped me up a tax bracket. I went from my usual $4k refund to owing $1k, so I am actually paying $5k more in taxes because of it . . . and I'm still paying the mortgage on the old house . . . and rent for my new place . . . and child support . . . and alimony . . . and even after all that I still have more money left over than I did when my (ex) wife was spending all of my money

Ouch.

Freedom isn't free.

[Homeslice]

"The mortgage-interest deduction, which lets people deduct the interest they pay on their mortgages, requires the government to essentially write an annual check to everyone with a mortgage".

A correct statement

[pauldun170]

"The mortgage-interest deduction, which lets people deduct the interest they pay on their mortgages, requires the government to essentially write an annual check to everyone with a mortgage".

I write a check to the government $33,000.
(Well I don't actually have to write a check. They just take it out of my paycheck)

I write another check to the state government for $7000. Its for use of state land (also known as real estate taxes)

I fill out a bunch of forms in the first quarter each year to make sure I've paid up all my bills to the federal government.

On a couple of items, the government throws in some freebies.
A package deal if you will. Buy one get one free kinda of stuff.

Government says if you do certain things we'll cut you a break.
On of those things is financing a home.
Government says...dont sweat the interest you pay on your mortgage because the bank is already paying taxes on that amount and we like people buying houses.


I say ok sweet deal.


On the interwebz "OMG they are giving those homeowners money!!!"


um no they are not.

[Homeslice]

Originally Posted by pauldun170

On the interwebz "OMG they are giving those homeowners money!!!"


um no they are not.

Giving them money, refunding them money......same thing really. Why? Because if they wanted to, they could eliminate that deduction, and you couldn't do shit about it. Lulz

[Papa_Complex]

Originally Posted by Homeslice

Giving them money, refunding them money......same thing really. Why? Because if they wanted to, they could eliminate that deduction, and you couldn't do shit about it. Lulz

On the one hand, you have people saying that the government is giving you money.

On the other hand, you have people saying that the government is giving you back a percentage of a percentage, of money that they already took from you.

Seriously, which is the more likely scenario?

[Homeslice]

Originally Posted by Papa_Complex

On the other hand, you have people saying that the government is giving you back a percentage of a percentage, of money that they already took from you.

True, if one believes that ALL taxes are the same and should be lumped together for the purposes of this conversation.

But, some taxes are federal and some aren't. For example, property taxes aren't federal.

If anything, this deduction should be on a state level, not federal. Think about it this way. If I live in an expensive state like NY or CA, and my mortgage principal is $750K, I'm getting a pretty decent deduction from the feds --- Which is being taken out of ALL taxpayer's pockets, across the country. How does that make sense? Why not have each state manage it themselves, instead of forcing people in Mississippi to partially subsidize the deductions of people in CA?

[Papa_Complex]

Originally Posted by Homeslice

True, if one believes that ALL taxes are the same and should be lumped together for the purposes of this conversation.

But, some taxes are federal and some aren't. For example, property taxes aren't federal.

If anything, this deduction should be on a state level, not federal. Think about it this way. If I live in an expensive state like NY or CA, and my mortgage principal is $750K, I'm getting a pretty decent deduction from the feds --- Which is being taken out of ALL taxpayer's pockets, across the country. How does that make sense? Why not have each state manage it themselves, instead of forcing people in Mississippi to partially subsidize the deductions of people in CA?

For the purposes of this conversation, it's all the same; the government giving you back a fraction of your own money.

From a standpoint of which level of government should be doing it, I would say that you're right. It would make more sense as a tool to drive the local economy, via State government, rather than coming from the Federal level.

[LeeNetworX]

Internet: Chock full of legal and financial genius.

[Particle Man]

Originally Posted by tommymac

funny you mention that. We had an 'accountant" who did our/my taxes a few yrs ago and told me I owed up to 15k dollars. His advice was to have kids and buy either another or a more expensive house. He was promptly told to fuck off and have since found a much better accountant.

Same here. Went to three different accountants before we found one who wouldn't spout that load of garbage.