Filing Taxes for 2006
Jan 12th 2006, 3:11 am
#106
Septicity
Joined: May 2004
Posts: 23,762
Re: Filing Taxes for 2006
Originally Posted by BigDavyG
Unless you are investing in property or counting the appreciation in value of your house (if you own one) 10% is a very optimistic expectation imo. Especially given that some of your portfolio will have to be earning well in excess of 10% to balance out the funds you have in checkings/savings accounts.
Your checking and savings accounts are not really investments; they are more a necessity for living. Of course they have minimum returns but you should try to maximize these as well.
Jan 12th 2006, 3:14 am
#107
Septicity
Joined: May 2004
Posts: 23,762
Re: Filing Taxes for 2006
Originally Posted by BigDavyG
Yet again, I see you are democrat to the core 
again!Republicans are good with money and Democrats aren't? Don't understand at all, I'm afraid.
Jan 12th 2006, 4:01 am
#108
Mr. Grumpy
Joined: Jun 2003
Location: Nashville, TN
Posts: 3,100
Re: Filing Taxes for 2006
Originally Posted by snowbunny
Try Bob and Michelle first.
Of course, fatbrit, without the Bobs and Michelles of the US, the IRS would be cash starved and would start insisting on even greater penalties for underwithholding and pre-payment.
Bob and Michelle are doing you a favour.
Of course, fatbrit, without the Bobs and Michelles of the US, the IRS would be cash starved and would start insisting on even greater penalties for underwithholding and pre-payment.
Bob and Michelle are doing you a favour.
funny how my fictional friends bob and michelle have morphed into real people!
Jan 12th 2006, 4:24 am
#109
Thinking about it
Joined: Oct 2005
Location: Mid-West
Posts: 9,435
Re: Filing Taxes for 2006
Originally Posted by fatbrit
The appreciated value of property has indeed been a very good investment over the last couple of years in many markets both here in the US and abroad. I'm not convinced it will continue to see these rises in many of the markets, however. But good investments are diversified, anyway. You wouldn't want all your eggs in one basket, would you now? And why would one not count property in one's investments
If, on the other hand you have a more significant property portfolio then that's fair enough.
Jan 12th 2006, 4:27 am
#110
Lost in BE Cyberspace
Joined: Feb 2004
Posts: 14,578
Re: Filing Taxes for 2006
I'm in with the lazy/stupid people; I forgot to change my tax status before the last tax year, forgot to change it during the last tax year and have forgotten to change it again before the end of this tax year!
Jan 12th 2006, 4:31 am
#111
Septicity
Joined: May 2004
Posts: 23,762
Re: Filing Taxes for 2006
Originally Posted by BritGuyTN
funny how my fictional friends bob and michelle have morphed into real people!
Such is the magic of BE!
Jan 12th 2006, 4:31 am
#112
Account Closed
Joined: Sep 2005
Posts: 8,271
Re: Filing Taxes for 2006
Originally Posted by anotherlimey
I'm in with the lazy/stupid people; I forgot to change my tax status before the last tax year, forgot to change it during the last tax year and have forgotten to change it again before the end of this tax year!
Jan 12th 2006, 4:35 am
#113
Septicity
Joined: May 2004
Posts: 23,762
Re: Filing Taxes for 2006
Originally Posted by BigDavyG
It is very unwise to count property as an investment if your portfolio consists solely of your own home - you bought it primarily to live in and when you sell it you will most likely use the profits to find somewhere new to live it - that's why your primary dwelling will not be taxed in the same way as investment properties.
If, on the other hand you have a more significant property portfolio then that's fair enough.
If, on the other hand you have a more significant property portfolio then that's fair enough.
Jan 12th 2006, 4:38 am
#114
Thinking about it
Joined: Oct 2005
Location: Mid-West
Posts: 9,435
Re: Filing Taxes for 2006
Originally Posted by Angry White Pyjamas
I must admit I prefer the "easy as possible and let someone else deal with the sh!t" aproach to taxes. I couldnt be assed to spend hours and hours looking at tax returns for the sake of a couple of dollars.
Jan 12th 2006, 4:40 am
#115
Septicity
Joined: May 2004
Posts: 23,762
Re: Filing Taxes for 2006
Originally Posted by Angry White Pyjamas
I must admit I prefer the "easy as possible and let someone else deal with the sh!t" aproach to taxes. I couldnt be assed to spend hours and hours looking at tax returns for the sake of a couple of dollars.
Depends how much a couple of dollars is.
Jan 12th 2006, 4:42 am
#116
Lost in BE Cyberspace
Joined: Feb 2004
Posts: 14,578
Re: Filing Taxes for 2006
I'm now leaning towards doing my own taxes via one of the Tax programs, it can't be that hard........
Jan 12th 2006, 5:47 am
#117
Back where I belong!
Joined: Aug 2005
Location: Melbourne, Oz to Banbury, England to El Mirage, AZ & now back to England!
Posts: 5,989
Re: Filing Taxes for 2006
Originally Posted by BigDavyG
No offense to anyone who posts on here, but I doubt if there are many 7/8 figure earners, so in reality what are you going to be missing out on in terms of interest by the IRS holding some of your cash for you ????
As for the automatic savings plan option - well many people lack the financial restraint to leave the cash there for a year without dipping into it now and again.
Anyway, you've missed my point. The subtexts of a lot of the posts on here seemed to be saying that people who get a big refund are either lazy or stupid. I'm quite happy to get a big refund for the reasons explained, and frankly I have better things to do with my time instead of trying to calculate how I can minimize my withholdings so that I end up with say an extra $500 over the course of the year, assuming that I did not spend the cash well before the year end.
To me it seems like one of those penny wise, pound foolish things - if you're that bothered about having your tax in a savings account for the year I assume that you drive a hybrid motor and have solar panels on your roof.
Each to his own as far as this goes, but I'll take my refund and have fun with that for which I have had to waste no time or effort on throughout the year.
As for the automatic savings plan option - well many people lack the financial restraint to leave the cash there for a year without dipping into it now and again.
Anyway, you've missed my point. The subtexts of a lot of the posts on here seemed to be saying that people who get a big refund are either lazy or stupid. I'm quite happy to get a big refund for the reasons explained, and frankly I have better things to do with my time instead of trying to calculate how I can minimize my withholdings so that I end up with say an extra $500 over the course of the year, assuming that I did not spend the cash well before the year end.
To me it seems like one of those penny wise, pound foolish things - if you're that bothered about having your tax in a savings account for the year I assume that you drive a hybrid motor and have solar panels on your roof.
Each to his own as far as this goes, but I'll take my refund and have fun with that for which I have had to waste no time or effort on throughout the year.
Jan 12th 2006, 5:49 am
#118
BE Forum Addict
Joined: Mar 2003
Location: Florida
Posts: 1,296
Re: Filing Taxes for 2006
Originally Posted by BigDavyG
No offense to anyone who posts on here, but I doubt if there are many 7/8 figure earners, so in reality what are you going to be missing out on in terms of interest by the IRS holding some of your cash for you ????
As for the automatic savings plan option - well many people lack the financial restraint to leave the cash there for a year without dipping into it now and again.
Anyway, you've missed my point. The subtexts of a lot of the posts on here seemed to be saying that people who get a big refund are either lazy or stupid. I'm quite happy to get a big refund for the reasons explained, and frankly I have better things to do with my time instead of trying to calculate how I can minimize my withholdings so that I end up with say an extra $500 over the course of the year, assuming that I did not spend the cash well before the year end.
To me it seems like one of those penny wise, pound foolish things - if you're that bothered about having your tax in a savings account for the year I assume that you drive a hybrid motor and have solar panels on your roof.
Each to his own as far as this goes, but I'll take my refund and have fun with that for which I have had to waste no time or effort on throughout the year.
As for the automatic savings plan option - well many people lack the financial restraint to leave the cash there for a year without dipping into it now and again.
Anyway, you've missed my point. The subtexts of a lot of the posts on here seemed to be saying that people who get a big refund are either lazy or stupid. I'm quite happy to get a big refund for the reasons explained, and frankly I have better things to do with my time instead of trying to calculate how I can minimize my withholdings so that I end up with say an extra $500 over the course of the year, assuming that I did not spend the cash well before the year end.
To me it seems like one of those penny wise, pound foolish things - if you're that bothered about having your tax in a savings account for the year I assume that you drive a hybrid motor and have solar panels on your roof.
Each to his own as far as this goes, but I'll take my refund and have fun with that for which I have had to waste no time or effort on throughout the year.
If you have a mortgage, make charitable donations to goodwill, have children (in daycare) etc etc you don't have to be earning 7/8 figures to get a substantial refund. which makes no sense at all to let the IRS hold for you for 13 months. In our case, if we didn't claim extra dependents we would get a refund in excess of $5000- you don't have to be a genius at maths to work out that';s $400 a month. Yep you bet I begrudge the IRS making interest of our money. I put the 400 into Ing Direct and get interest on it. I use it as an escrow account (cos that's another bloody huge rip off in this country) and pay property taxes, homeowners and car insurance out of it annually with some to spare- all gaining interest monthly. And we still get a modest refund of a couple of hundred.
But as you said "each to their own"- many people like having that big refund sent to them rather than save it up for themselves. Same thing with escrow accounts- why let your mortgage company make interest out of your money and involving property taxes that can be quite a substantial amount of interest- yet people still think escrow accounts are the best way. Okay if you haven't got the self discipline to put the money away each month- maybe they are, but its penny and dollar foolish really.
Back to tax- my daughter in law over- withholds just to get a big tax refund, which she uses to pay off her credit/store cards (some of them over 20% interest!). The only way she can buy clothes etc is by credit card (cos the silly bugger is way overpaying tax every month). She uses H&R cos she doesn't trust turbotax, pays their fee( tax deductible granted but that doesn't mean free) and then pays to get the refund instantly...okay if I had nothing to do for the next hour I could probably work out just what that tax refund was actually 'costing' her. My son has given up trying to get through to her about it.
Last edited by Taffyles; Jan 12th 2006 at 5:57 am.
Jan 12th 2006, 5:50 am
#119
Septicity
Joined: May 2004
Posts: 23,762
Re: Filing Taxes for 2006
Originally Posted by Partystar
I agree! I love getting my big refund! It's gonna pay off most of our credit card, so we can buy a house!!!
If you hadn't given it to the government to start with, you wouldn't have found it necessary to run up such a bill on your credit card with high interest payments. So you could have bought your house sooner!
Jan 12th 2006, 5:50 am
#120
Back where I belong!
Joined: Aug 2005
Location: Melbourne, Oz to Banbury, England to El Mirage, AZ & now back to England!
Posts: 5,989
Re: Filing Taxes for 2006
Originally Posted by fatbrit
First rule: let the idiots pay!
