Mayram Aram was on Hedgecock today

[NotCranky]

I’t doesn’t work that way so why should I look for principles. I am collecting personal assets through leverage of things I bought with income and assets which i sold and paid taxes for if applicable. When I need to pay I will pay. If I sell something I build I will pay.If I collect rents I will pay.Meanwhile since the mortgage is against and owner occuppied home, when I get it, it is tax deductible. I will use it when my wifes income and mine, outside of these projests requires it.Since we reproduced like rodents that isn’t likely. My tax guy asks me what I did and I tell him.
If I use that money to buy an RV do I pay taxes on it,hell no. So where is the “principles” problem with me putting it to good use? besides I hate working 9 to %. Many people here know and perhaps believe I quit selling RE in 2004. So I work to make a living until my principles allows me to sell RE, which is coming real soon. I got principle on top of my principle Patient.

Now please come back and say wow that’s cool Rus or tell me what I am doing wrong . Don’t jsut slink off because I feel dumped on when people do that. Finish what you started. I will take a lesson if you can teach me one.

[patientrenter]

Sorry, Rus, I wasn’t questioning your personal principles. I just thought I’d read once that, when it came time to define tax law for the self-employed, the tax law principle was established that separation of the annual increase in business value between immediately taxable income and deferrably taxable gain was done using a fair value for the working / managing contribution of the owner to the business. Once you go from principles to practice, it gets complicated, but I thought that was the general guiding principle in this area. I am no tax authority, so I just don’t know if I got that right. I am sure it’s somewhere, but I don’t have the expertise or energy to look it up.

Patient renter in OC

[patientrenter]

Sorry, Rus, I wasn’t questioning your personal principles. I just thought I’d read once that, when it came time to define tax law for the self-employed, the tax law principle was established that separation of the annual increase in business value between immediately taxable income and deferrably taxable gain was done using a fair value for the working / managing contribution of the owner to the business. Once you go from principles to practice, it gets complicated, but I thought that was the general guiding principle in this area. I am no tax authority, so I just don’t know if I got that right. I am sure it’s somewhere, but I don’t have the expertise or energy to look it up.

Patient renter in OC

[patientrenter]

Sorry, Rus, I wasn’t questioning your personal principles. I just thought I’d read once that, when it came time to define tax law for the self-employed, the tax law principle was established that separation of the annual increase in business value between immediately taxable income and deferrably taxable gain was done using a fair value for the working / managing contribution of the owner to the business. Once you go from principles to practice, it gets complicated, but I thought that was the general guiding principle in this area. I am no tax authority, so I just don’t know if I got that right. I am sure it’s somewhere, but I don’t have the expertise or energy to look it up.

Patient renter in OC

[patientrenter]

Sorry, Rus, I wasn’t questioning your personal principles. I just thought I’d read once that, when it came time to define tax law for the self-employed, the tax law principle was established that separation of the annual increase in business value between immediately taxable income and deferrably taxable gain was done using a fair value for the working / managing contribution of the owner to the business. Once you go from principles to practice, it gets complicated, but I thought that was the general guiding principle in this area. I am no tax authority, so I just don’t know if I got that right. I am sure it’s somewhere, but I don’t have the expertise or energy to look it up.

Patient renter in OC

[patientrenter]

Sorry, Rus, I wasn’t questioning your personal principles. I just thought I’d read once that, when it came time to define tax law for the self-employed, the tax law principle was established that separation of the annual increase in business value between immediately taxable income and deferrably taxable gain was done using a fair value for the working / managing contribution of the owner to the business. Once you go from principles to practice, it gets complicated, but I thought that was the general guiding principle in this area. I am no tax authority, so I just don’t know if I got that right. I am sure it’s somewhere, but I don’t have the expertise or energy to look it up.

Patient renter in OC

[NotCranky]

Thanks I should not be so fiesty either. What I am doing is legit. I am not going to read the fine print to understand the time frame they want me to average my income, but if I do it for a few years it is no problem. I am a “consumer”, too stupid to understand loan documents anyway. This way I have the lifestyle I want.It is a loop hole in a worst case scenario. Why should the ultra rich have all fun while they run us into the ground…if we are not smart? I just want to be sure I have something constructive to do and hopefully a retirement source that some pension fund manager can’t give away that I can pass on to my kids, charity or both.

[NotCranky]

Thanks I should not be so fiesty either. What I am doing is legit. I am not going to read the fine print to understand the time frame they want me to average my income, but if I do it for a few years it is no problem. I am a “consumer”, too stupid to understand loan documents anyway. This way I have the lifestyle I want.It is a loop hole in a worst case scenario. Why should the ultra rich have all fun while they run us into the ground…if we are not smart? I just want to be sure I have something constructive to do and hopefully a retirement source that some pension fund manager can’t give away that I can pass on to my kids, charity or both.

[NotCranky]

Thanks I should not be so fiesty either. What I am doing is legit. I am not going to read the fine print to understand the time frame they want me to average my income, but if I do it for a few years it is no problem. I am a “consumer”, too stupid to understand loan documents anyway. This way I have the lifestyle I want.It is a loop hole in a worst case scenario. Why should the ultra rich have all fun while they run us into the ground…if we are not smart? I just want to be sure I have something constructive to do and hopefully a retirement source that some pension fund manager can’t give away that I can pass on to my kids, charity or both.

[NotCranky]

Thanks I should not be so fiesty either. What I am doing is legit. I am not going to read the fine print to understand the time frame they want me to average my income, but if I do it for a few years it is no problem. I am a “consumer”, too stupid to understand loan documents anyway. This way I have the lifestyle I want.It is a loop hole in a worst case scenario. Why should the ultra rich have all fun while they run us into the ground…if we are not smart? I just want to be sure I have something constructive to do and hopefully a retirement source that some pension fund manager can’t give away that I can pass on to my kids, charity or both.

[NotCranky]

Thanks I should not be so fiesty either. What I am doing is legit. I am not going to read the fine print to understand the time frame they want me to average my income, but if I do it for a few years it is no problem. I am a “consumer”, too stupid to understand loan documents anyway. This way I have the lifestyle I want.It is a loop hole in a worst case scenario. Why should the ultra rich have all fun while they run us into the ground…if we are not smart? I just want to be sure I have something constructive to do and hopefully a retirement source that some pension fund manager can’t give away that I can pass on to my kids, charity or both.

[Chance the Gardener]

Income tax is on income, not the increase in value of your business. There needs to be a realization event to be taxed on the increase in value of your business, like a sale. Any goodwill you build up in your business (=sale price – book value) will be taxed on the way out (taxable gain = sale price – adjusted basis). If your business has value, you can borrow against that – shouldn’t need to state or prove your income. If your business isn’t good collateral then you should have to put up your tax returns to show a steady income stream. If your taking your income in cash and not claiming it as income, you certainly shouldn’t be allowed to count on that to support a higher ltv. You could use cash toward the down payment though.

I wonder if the IRS has considered using stated income statements against taxpayers in actions to recover taxes on unclaimed income. Its a sworn statement, made by the party being prosecuted. I would think the dead beat would be estopped from claiming his income was less. That would be great – might put some of the blame for this loan mess where it needs to be placed.

[Chance the Gardener]

Income tax is on income, not the increase in value of your business. There needs to be a realization event to be taxed on the increase in value of your business, like a sale. Any goodwill you build up in your business (=sale price – book value) will be taxed on the way out (taxable gain = sale price – adjusted basis). If your business has value, you can borrow against that – shouldn’t need to state or prove your income. If your business isn’t good collateral then you should have to put up your tax returns to show a steady income stream. If your taking your income in cash and not claiming it as income, you certainly shouldn’t be allowed to count on that to support a higher ltv. You could use cash toward the down payment though.

I wonder if the IRS has considered using stated income statements against taxpayers in actions to recover taxes on unclaimed income. Its a sworn statement, made by the party being prosecuted. I would think the dead beat would be estopped from claiming his income was less. That would be great – might put some of the blame for this loan mess where it needs to be placed.

[Chance the Gardener]

Income tax is on income, not the increase in value of your business. There needs to be a realization event to be taxed on the increase in value of your business, like a sale. Any goodwill you build up in your business (=sale price – book value) will be taxed on the way out (taxable gain = sale price – adjusted basis). If your business has value, you can borrow against that – shouldn’t need to state or prove your income. If your business isn’t good collateral then you should have to put up your tax returns to show a steady income stream. If your taking your income in cash and not claiming it as income, you certainly shouldn’t be allowed to count on that to support a higher ltv. You could use cash toward the down payment though.

I wonder if the IRS has considered using stated income statements against taxpayers in actions to recover taxes on unclaimed income. Its a sworn statement, made by the party being prosecuted. I would think the dead beat would be estopped from claiming his income was less. That would be great – might put some of the blame for this loan mess where it needs to be placed.

[Chance the Gardener]

Income tax is on income, not the increase in value of your business. There needs to be a realization event to be taxed on the increase in value of your business, like a sale. Any goodwill you build up in your business (=sale price – book value) will be taxed on the way out (taxable gain = sale price – adjusted basis). If your business has value, you can borrow against that – shouldn’t need to state or prove your income. If your business isn’t good collateral then you should have to put up your tax returns to show a steady income stream. If your taking your income in cash and not claiming it as income, you certainly shouldn’t be allowed to count on that to support a higher ltv. You could use cash toward the down payment though.

I wonder if the IRS has considered using stated income statements against taxpayers in actions to recover taxes on unclaimed income. Its a sworn statement, made by the party being prosecuted. I would think the dead beat would be estopped from claiming his income was less. That would be great – might put some of the blame for this loan mess where it needs to be placed.

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