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Veteran Advisor

Re: $1 million: Quarter, hog sites or Jamba Juice?

BA  -  Don't  forget  the    '''  Lake  House '''   2nd  home  &  shop  to  impress  the  neighbors  &  the  johnny  popper  10K  mower  on  schedule  also  -   -   -  

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Veteran Advisor

Re: $1 million: Quarter, hog sites or Jamba Juice?

I  find  it  interesting  the  add  running  now,  orange  tractor  &  folded  planter  &  NOT  GETTING  HONKED  OFF  - hmmmm  -  does  that  kinda  tweek  a  sensodyne  moment -  like  the   neW$ence   article  on  litigation  of  ''  drift  odor ''  which  of  course  is  a  figment  of  ones  neighbors  imagination  -  maybe ?   

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Honored Advisor

Re: $1 million: Quarter, hog sites or Jamba Juice?

Embezzling might not be the term used but, Lots of questions.......coming..... did he remove it from the financial statements as an expense( like salary or.....)

Is the equipment sale shown  on the LLC books. If not ..........    

Yes at some point there is reckoning.  But I assume the guy has some accounting assistance since he has defined ownership and an LLC.  

Woking toward finality-- it's sometimes called.........and sometimes it is premature......... But the struggle of the game can mush a guy's brain and we just get tired of the constant changes.

In that case "the game can end way before it is over."-----yogi berra   But the LLC might not be critical,  maybe just not moving toward the set goals.

 

The death of a business in faming families can be similar to the death of a child.

And feel worse because it happens slower. Like a cancer.

 

What I face.  Is a next generation that does not have "flexible thinking", but has too much pride.

Being tough enough to do business in the SW dust bowl has nothing to do with pride,      but everything to do with risk management and adjusting.  "It is a lot easier to change me than corn market.

 

A relative once said faming can be a first date with the prettiest gal that ends with a dreamy kiss...... followed by a broken nose................. Or it can start with a broken nose

The latter is easier to survive.

 

 

----------------

Extra thought.

 

The future needs to have hope.  And for me I find hope in the solitude of production agriculture, even though the potential of the 1950's turning into the 1970's is hard to see in 2018 (especially with the elephant of federal regulation sitting on the chest of the economy and they are regulating everything they possibly can),  But the view down the road here has more hope than it does from anywhere in a major city in the US.  At least for me.   And I hope for you

 

 

 

 

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Honored Advisor

Re: $1 million: Quarter, hog sites or Jamba Juice?

BA     done wisely it is not spending yourself rich,  it is controlling your expenses.  Your federal income tax is an expense of doing business. Nothing more ----

 

This thought is easier if you seperate the farm from the personal......... We all struggle with that.

 

At best it is paying for public services you need and at worst it is protection money.  But you have some contol of the amount you donate this year and next thanks to the tax code.  They recognize the ups and downs of farming and structure it so that you don't get beat up by a good year if your interested in investing in the future.  It is all about economic turbocharging.

 

The government is way beyond regulating commerce.  They are driving the economic bus and taking up 50% of the seats.

 

 

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Veteran Advisor

Re: $1 million: Quarter, hog sites or Jamba Juice?

The   four  letter  word  ''''   regulation  ''''    has  several  first  cousins,  with  the   '''exploitation ''''  of  exempt ,  denial,   and  defile  -   -    -   

Honored Advisor

Re: $1 million: Quarter, hog sites or Jamba Juice?

Yes, I don`t know what`s in his books, but his company is on the edge and corners are cut.  The company appears to be a shell and anyone suing would get a whole lot of nothing, unless they could go after him personally, where if it was proven he had been raiding company assets for a couple years now, he might open himself up.  

 

Probably as long as you aren`t sued and pay your taxes, the government won`t have a problem with you.

 

http://www.shindelrock.com/proper-reporting-embezzled-income-irs/

 

 

The IRS offers the embezzler two options for reporting the increased income. If the embezzled funds are from self-employment activity, schedule C or schedule C-EZ should be used and the amount is subject to self-employment taxes. If not, the embezzled funds can be reported on line 21 of form 1040 and are not subject to self-employment taxes.

Taxpayers who embezzle funds over several tax periods are subject to a variety of income taxes and penalties. Companies that have been embezzled are subject to additional reporting requirements.

If the amounts embezzled cannot be absolutely determined, it is the responsibility of the embezzler to prove to the IRS that the amounts reported by his or her employer to the IRS are not correct. Such evidence could benefit an employer during legal proceedings against the embezzler.

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Honored Advisor

Re: $1 million: Quarter, hog sites or Jamba Juice?

feds are not the problem.  The creditors are.

 

 

BA & 289,   A little(o a lot)of personal opinion here

 

This subject is one of the easiest to see the "out of control" nature of the bureaucracy of federal employees and the politicization of departments...

 

The 179 deduction has been in tax law since 2010.  It came as an economic stimulus folowing the 2008 lending/bank fraud bubble. (sometimes refered to as a housing bubble because congress became irrational as they tried to make every voter, and the ever increasing unemployed, eligible for home loans in excess of ability make payments on---then congress allowed the banks-- through relaxed regulation and lack of enforcement to bundle/hide them in packaged loans to sell around the world) ----- and I make the assumption that there were congress men and some that appear to be women who assumed that all those new home owners would find some protection in the bankruptcy laws --- if so, that is criminal fraud by lawmakers IMO.

 

back to point.,....... 179 was a law passed by congess as part of a "congressional" bundling of things that "won't stand the light of day on their own".

Now it is still law........but in the obama years CPA's, by the IRS,were instructed that any purchase of over a level somewhere in the area of $500 to $1,000 or more would have to be capitalized and depreciated over the normal life of the item.  

Now in 2018 the IRS is under a new administration and the expensing of purchases related to production has gone the other way..... My CPA refers to it as the greatest liberalization of the tax code ever.  

I assume congess decided this but probably congress has not discussed it at all since 2010.  Administrative freedom  or Presidential decree... someone explain it to me.  Because it looks to me like the employees are writing the laws and the congressmen are soap opera stars.  And frankly we need internal investigations department after department.

 

----------------back to my discussion  with the CPA.....

I rebuild cummins diesel engines as natural gas engines for irrigation use. (its a hobby and I have professional references advising-- we have two of the original guru's on the subject in the area)

This year I am doing three..... I bought 2 from the "professionals"...... an we repaired 4 (head changes or one piston and sleeve)...... we spend a little money, so I asked the CPA where I need to record these expenditures ,,,, with a crank or a cam going for $1800+ etc etc   assuming we had a limit on expensing out bigger items.  He told me the last 4 years has seen more changes in tax code than any point in his career (40+ years)

I asked "Did I miss the new tax law passed by congress?"  ....................... No you didn't.

That new motor I bought from the Pro that builds them for $28,000.  can be expensed like parts this year or it can be recorded as a depreciable item.my choice.

 

He is a personal friend and long time friend,  I know the business so I asked.......... "______ are you OK?" ............ "NO,  starting to look forward to retirement."

 

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Veteran Advisor

Re: $1 million: Quarter, hog sites or Jamba Juice?

I  witnessed  the  tax  deduction   Vu - Doo  econ-mics  of  depreciation  when  I  had  contractors  who  had  to  elect  short   depreciation  or  7  year  on  class 8  trucks -  of  which  neither  one  fit  the  bill  -  -  -

 

Tricking - pushing,  these  hard  working  folks  into  short  term ,  trade  your  equipment  away  to  prosperity  folly  was  unhinged  tomfoolery - although experts would argue differently -  -   -        

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Honored Advisor

Re: $1 million: Quarter, hog sites or Jamba Juice?

Aministrations and IRS circumventing congress and the voters

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