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Comment on tAX——-? by Theodore Sebastian

Theodore Sebastian — Mon, 01 Mar 2010 13:20:11 +0000

With regard to any endevour that man embarks on there will always be one or two that find the ugliest side of man.

Comment on tAX——-? by evilindependent

evilindependent — Mon, 01 Mar 2010 13:20:11 +0000

Look at the economies of countries with more taxes, it also equals more unemployment. Europe and Canada are good examples of more socialized economies. They cannot afford to drive a car or to even own one, must wait for mediocre health care and the good jobs are snatched up by those with good networks.

Comment on tAX——-? by porcerelllisman q

porcerelllisman q — Mon, 01 Mar 2010 13:20:11 +0000

Less tax let the lazy take care of themselves

Comment on tAX——-? by Carlo R

Carlo R — Mon, 01 Mar 2010 13:20:11 +0000

i think you should learn how to spell

Comment on When a tax collector sues for vehicle property tax, what does the complaint have to allege? by viajero_intergalactico

viajero_intergalactico — Mon, 15 Feb 2010 13:28:07 +0000

i dont understand what you are asking here, but usually you are allowed due process even on tax issues. so if you do not believe the tax man is correct there has to be a way you can dispute this.

Comment on What does it mean that the gift tax is tax exclusive and the estate tax is tax inclusive? by NotEasilyFooled

NotEasilyFooled — Tue, 02 Feb 2010 23:22:10 +0000

I think what you probably meant is this: when you figure the amount of a gift, you DON’T include that tax you are going to pay on it, so there is no tax on the tax. On the other hand, when your figure the estate tax, to DO figure it on the entire net estate–you get no deduction for the amount of estate tax you will pay. So you do pay tax on the tax.

For example, if the tax rate were a flat 50%, and all your unified credit is consumed. If you gave a $2 million gift, you would pay $1 million tax. You are out of pocket $3 million. Taxes ate 1/3, and your beneficiary got 2/3. If, on the other hand, you died with $3 million, you’d pay 1.5 million in tax, and your heirs would only get the other 1.5 million. So, while the stated rate of tax is the same, you pay more with an estate tax than with a gift tax.

Good luck on your exam.

Comment on How can I compare my current tax exempt salary and benefits to job offers back in the States? by bostonianinmo

bostonianinmo — Mon, 18 Jan 2010 13:22:37 +0000

Sorry, but your salary earned as an employee of the US Government stationed in Germany is NOT tax exempt in the US! It may be covered by the SOFA and not taxed in Germany, but it damn sure IS taxable in the US! If you haven’t been paying taxes on that income, you are in for a VERY rude surprise one day!

Addendum: OK, you are able to exclude the income from taxation using the FEIE. It’s NOT exempt, however. File a return one day late and you’ll learn that lesson the hard way.

You can go here for some handy tax estimators: http://www.paycheckcity.com and "slice and dice" the numbers to figure out about how much you’d need to earn in order to arrive at a similar take-home pay.

Don’t forget to take into consideration the local cost of living where you plan on settling. $80k a year will carry you a long way in Joplin, MO, but you’ll be living paycheck to paycheck in NYC, Boston or San Francisco on the same income.

Comment on How can I compare my current tax exempt salary and benefits to job offers back in the States? by MoneyMaker

MoneyMaker — Mon, 18 Jan 2010 13:22:37 +0000

I am assuming that since your income is exempt, you ARE NOT an employee of the US Government, and are therefore entitled to the Foreign Earned Income Exemption (FEIE) of up to $82,400 (as of 2006). I am also assuming that you are not receiving any housing allowance and that you are not subject to SS and Medicare Tax. Finally, I am assuming that your income would equal your adjusted gross income (i.e., no adjustments to income and no tax credits).

Under this set of assumptions, if you are earning $82,400 of exempt income, an equivalent taxable income would be roughly $114,000. Note that this amount does not take into consideration state income taxes as you did not indicate in what state you would be residing. Also excluded is the impact of sales taxes since they are a function of your level of consumption.

The calculation is rather convoluted and I am not aware of any readily available salary conversion sites. This is probably due in part to the many variables that would come into play.

For your information, that $114,000 salary would roughly break down as follows:

$114,000
- 6,045 SS Tax at 6.2% of the first $97,500
- 1,653 Medicare Tax at 1.45%
– 23,857 Federal Tax (assuming 1 exemption and std. deduction)
$ 82,445

Comment on What tax do I pay when living in a state without a sales tax? by katson6

katson6 — Sun, 03 Jan 2010 03:33:52 +0000

You would be paying the MA sales tax becuse the sale originated in MA. Not until after the purchase would you be registering it in NH

Comment on What tax do I pay when living in a state without a sales tax? by Digital Haruspex

Digital Haruspex — Sun, 03 Jan 2010 03:33:52 +0000

You would have to pay sales tax for MA if the car was physically in MA when it was sold or, likely also, if it was simply registered in MA at the time of purchase.

The tax should be included in the price. If you’re buying it from a private owner rather than a dealer than I doubt sales tax will be an issue even though the person should still "legally" collect it, I doubt they will.