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Final GOP tax bill actually 180 for me/solo attorneys. FUCKS wage cucks
Poast new message in this thread
Date: December 16th, 2017 9:14 AM Author: disgusting nursing home gaping They ended up agreeing to allow a random as fuck 20% tax deduction for pass through entities. Originally this excluded lawyers and professional service firms but now were included up to $315k.
Lol at wagecuck lawyers paying huge tax bills while I get like a $45,000 deduction.
If you're still on the fence about going solo, just fucking do it. |
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Date: December 16th, 2017 9:21 AM Author: sapphire electric set yarmulke I don’t think you have to be solo. Equity partners at small firms get this too, no? (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34933962) |
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Date: December 16th, 2017 9:44 AM Author: disgusting nursing home gaping Not a taxmo but presumably equity partners could take advantage of this if the firm elects pass through taxation. (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34934041) |
Date: December 16th, 2017 9:43 AM Author: sapphire electric set yarmulke (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34934033) |
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Date: December 16th, 2017 9:45 AM Author: honey-headed whorehouse This is 180 for me given my wife has an LLC. (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34934043) |
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Date: December 16th, 2017 9:54 AM Author: brass titillating scourge upon the earth national (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34934071) |
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Date: December 16th, 2017 10:00 AM Author: disgusting nursing home gaping (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34934088) |
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Date: December 16th, 2017 10:16 AM Author: scarlet center sandwich Is this below the line? (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34934161) |
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Date: December 16th, 2017 10:18 AM Author: Swashbuckling indigo station 180 we're all going to be rich. And no boss/wagecucking (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34934169) |
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Date: December 16th, 2017 10:21 AM Author: Galvanic resort headpube U mad that I'll get 10,000 in CREDITS with my 5kids? Lmao@no childmos!!! (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34934184) |
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Date: December 16th, 2017 10:28 AM Author: disgusting nursing home gaping Childless, single, rootless cosmopolitan biglaw WAGECUCKS paying 60% effective rate between federal, state, and local taxes.
Alpha ARECOUNTRY business owner family men paying 18% on the same amount, high fiving and barbecuing in our big backyards, slapping cocks and balls, fully nude. |
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Date: December 16th, 2017 10:30 AM Author: chestnut school cafeteria (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34934227) |
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Date: December 16th, 2017 10:35 AM Author: Glittery canary house toaster 1.8.0 (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34934253) |
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Date: December 16th, 2017 10:38 AM Author: ocher boiling water There was a loophole in one of the bills, not sure if it is still there, that would allow firms to set up an LLC that would then pay associates, and they’d get the pass through rate. Doubt firms will do it but if one does, others will follow. (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34934274) |
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Date: December 17th, 2017 5:14 PM Author: fragrant orange brethren bbw Please link or ELI5 a practical entity set up to take advantage of this
Extremely relevant to my interests |
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Date: December 17th, 2017 5:22 PM Author: drab violent mediation Does not work to the extent the comp is guaranteed or can be characterized as reasonable compensation (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34943486) |
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Date: December 17th, 2017 5:28 PM Author: Light Immigrant Hissy Fit this should be a top-level response. only one in the thread who understands the mechanism (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34943537) |
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Date: December 17th, 2017 5:28 PM Author: Mind-boggling base macaca So does it work or not? Give us a straight answer faggot (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34943538) |
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Date: December 17th, 2017 5:29 PM Author: Light Immigrant Hissy Fit it only works to the extent your income is from goodwill/going concern value/trademark/your office lease/similar BS, which is not much, retard (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34943539) |
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Date: December 17th, 2017 5:39 PM Author: drab violent mediation It doesn’t - as my previous post implied - you troglodyte, low-IQ pumo. (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34943611) |
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Date: December 20th, 2017 8:10 PM Author: fragrant orange brethren bbw (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34970542) |
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Date: December 23rd, 2017 10:07 AM Author: sapphire electric set yarmulke Isn't a guaranteed payment a partnership concept and reasonable compensation a corporation concept? I don't think reasonable compensation is intended to be a new test for partnerships. (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34990920) |
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Date: December 16th, 2017 11:11 AM Author: Galvanic resort headpube TCR!!! (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34934433) |
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Date: December 16th, 2017 11:50 AM Author: 180 blathering locus generalized bond I came (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34934627) |
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Date: December 16th, 2017 2:55 PM Author: Exhilarant national security agency party of the first part (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34935926) |
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Date: December 16th, 2017 2:57 PM Author: Citrine Erotic Church Coffee Pot (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34935937) |
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Date: December 16th, 2017 3:08 PM Author: Ultramarine Bossy Piazza (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34935993) |
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Date: December 17th, 2017 5:27 PM Author: Self-centered Seedy Circlehead YNYYYYYYY
let's have a crawfish boil this summer brother |
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Date: December 20th, 2017 8:34 PM Author: heady field incel (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34970728) |
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Date: December 23rd, 2017 11:00 AM Author: mustard twisted prole hall (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34991166) |
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Date: December 16th, 2017 10:36 AM Author: Glittery canary house toaster This is so 180 omg (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34934266) |
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Date: December 16th, 2017 10:37 AM Author: Curious Maroon Internal Respiration How does this work? Is it step ladder to 20%? (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34934270) |
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Date: December 16th, 2017 10:40 AM Author: Bespoke cruise ship I can't tell if this phases out at 315 or if u get 20% deduction up to 315 regardless your total income. (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34934285) |
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Date: December 16th, 2017 10:45 AM Author: disgusting nursing home gaping Haven't seen the full bill and the articles summarizing it don't say. (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34934304) |
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Date: December 16th, 2017 10:47 AM Author: Bespoke cruise ship Me either, and I've been looking. I assume it's a straight deduction of 20% up to 315 but maybe that's wishful thinking. (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34934314) |
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Date: December 16th, 2017 11:55 AM Author: scarlet center sandwich (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34934652) |
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Date: December 17th, 2017 5:20 PM Author: drab violent mediation The 20 percent deduction starts phasing out at 315 and is fully phased out at 415 (this is total income for the married couple). - taxmo (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34943469) |
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Date: December 17th, 2017 5:25 PM Author: disgusting nursing home gaping Thanks. Do you know if it's above the line or below the line? (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34943504) |
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Date: December 17th, 2017 5:27 PM Author: drab violent mediation It’s below the line (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34943533) |
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Date: December 17th, 2017 6:01 PM Author: brindle university antidepressant drug So is this going to functionally eliminate the distinction between short and long term capital gains? I'm assuming that short term gains for a pass through entity would also be capped at 20%. (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34943714) |
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Date: December 17th, 2017 6:40 PM Author: drab violent mediation No. Capital gains ineligible for the deduction, whether or short or long term. They are specifically excluded from the definition of qualified income. (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34943917) |
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Date: December 23rd, 2017 10:30 AM Author: sapphire electric set yarmulke But you don't have to itemize I do not think. (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34991033) |
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Date: December 16th, 2017 12:25 PM Author: Arrogant Address 1. It's not random as fuck.
2. It's only 20%? I thought it was originally 35%.
3. Is the deduction still limited by a peg to a certain percentage of wages paid to employees? |
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Date: December 16th, 2017 12:29 PM Author: Floppy blood rage Poast the bill (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34934855) |
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Date: December 16th, 2017 12:45 PM Author: Arrogant Address My comment was based on vague recollections of the House and Senate bills. (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34935015) |
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Date: December 23rd, 2017 8:38 AM Author: irradiated plaza #3 only applies if you are over the income limits (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34990581) |
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Date: December 16th, 2017 2:59 PM Author: cowardly clown Has anyone over IQ120 confirmed this reading? (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34935945) |
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Date: December 17th, 2017 3:35 PM Author: scarlet center sandwich lots of terms of art. unclear whether it really applies across the board unless youre a taxmo (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34942785) |
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Date: December 17th, 2017 5:21 PM Author: drab violent mediation See my poast above. I have been working on this all weekend. He is right if the married couple makes less than 20 percent. (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34943477) |
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Date: December 17th, 2017 5:23 PM Author: disgusting nursing home gaping Why the hate, brother? (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34943494) |
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Date: December 20th, 2017 8:16 PM Author: cowardly clown Oh sorry friend it wasn’t directed. (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34970591) |
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Date: December 17th, 2017 5:18 PM Author: brindle university antidepressant drug Relevant to my interests. Can you link to a source confirming this? My understanding was that the House bill did not extend the pass through entity tax cut to professional service firms, and the ABA was lobbying hard to change that. (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34943455) |
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Date: December 17th, 2017 5:22 PM Author: drab violent mediation See my poast above. Professional service firms get it if income below for 415,000 for couple. Starts phasing out at 315,000. (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34943479) |
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Date: December 17th, 2017 5:26 PM Author: brindle university antidepressant drug Yeah I just saw your post. Thanks. That is good news for me. How does it work if you get a base salary and then a draw from the LLC, assuming combined income is still under $315,000? Is the salary still taxed at the regular rates? May make sense to restructure and reduce base salary to take advantage of the 20% top rate. . . (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34943514) |
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Date: December 17th, 2017 5:31 PM Author: drab violent mediation The draw is theoretically eligible for the deduction but not if it is “guaranteed” or “reasonable compensation”. Also there is a “guard rail” in section 199A(a) to prevent you from using the deduction to get a marginal tax rate that’s much lower than 20 percent (even if your income is <315k) (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34943551) |
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Date: December 17th, 2017 5:36 PM Author: brindle university antidepressant drug the draw is just a fixed percentage of annual profit, so I would think it is not considered to be "guaranteed" (I guess they are just going after entities that would convert salary to "draw" or whatever in order to get the lower rate?)
*Edit* ok I see what you're saying though, like I couldn't reduce the base salary by 1/2 and say well i'll just get that amount out of our "profit" every year.
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Date: December 17th, 2017 5:42 PM Author: drab violent mediation I mean you can always argue the issue with the IRS. At a certain point you are playing the audit lottery. (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34943635) |
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Date: December 17th, 2017 5:44 PM Author: Light Immigrant Hissy Fit you've got two reasonable comp arguments going.
1 is the standard S corp john edwards stuff of dividend vs. salary from the S corp (to what extent does your profit represent return on capital investment and to what extent does it represent your labor?)
2 is the newfangled 'no deduction to the extent passthru income represents reasonable compensation' concept |
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Date: December 17th, 2017 5:29 PM Author: Self-centered Seedy Circlehead still lmaoing at pretentious asian coastal wagecucks (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34943540) |
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Date: December 23rd, 2017 11:26 AM Author: Comical Big-titted Location Factory Reset Button CR (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34991320) |
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Date: December 20th, 2017 1:05 PM Author: disgusting nursing home gaping (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34966903) |
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Date: December 20th, 2017 1:06 PM Author: Self-centered Seedy Circlehead pls respond about crawfish boil. thank. (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34966911) |
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Date: December 20th, 2017 1:10 PM Author: sooty range skinny woman Just read an article that says it applies to architecture firms but not law firms (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34966940) |
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Date: December 20th, 2017 1:11 PM Author: nighttime point nowag 180 fuck lawyers (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34966951) |
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Date: December 20th, 2017 8:10 PM Author: fragrant orange brethren bbw (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34970545) |
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Date: December 20th, 2017 8:35 PM Author: heady field incel hahahaha (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34970737) |
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Date: December 20th, 2017 8:21 PM Author: brindle university antidepressant drug http://www.abajournal.com/news/article/consensus_tax_bill_includes_law_firms_in_pass_through_tax_relief_with_limit?utm_source=internal&utm_medium=navigation&utm_campaign=most_read (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34970628) |
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Date: December 20th, 2017 8:33 PM Author: cowardly clown 180 for me in spite of poormo income cutoffs:
“The ABA position also prevailed in regards to these provisions in the consensus bill:
• The student loan tax deduction is preserved.
• Some contingency-fee lawyers will still be able to deduct upfront litigation-related expenses. Lawyers within the jurisdiction of the San Francisco-based 9th U.S. Circuit Court of Appeals are permitted to deduct such expenses.”
http://www.abajournal.com/news/article/consensus_tax_bill_includes_law_firms_in_pass_through_tax_relief_with_limit |
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Date: December 21st, 2017 9:31 AM Author: Citrine Erotic Church Coffee Pot Lawyers within the jurisdiction of the San Francisco-based 9th U.S. Circuit Court of Appeals are permitted to deduct such expenses.”
What the fucking shit is this horseshit? Only the 9th circuit? |
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Date: December 21st, 2017 9:34 AM Author: Self-centered Seedy Circlehead (((hehe))) (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34974194) |
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Date: December 21st, 2017 9:43 AM Author: Citrine Erotic Church Coffee Pot serious Q - I am admitted to the 9th circuit but don't practice there. Can I use this? (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34974235) |
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Date: December 20th, 2017 8:50 PM Author: Sienna affirmative action jew it only applies to poor ass solos the income caps are so low (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34970814) |
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Date: December 21st, 2017 11:40 AM Author: disgusting nursing home gaping I believe the income cap is $315k net if you file jointly. I know on XO that qualifies as poor, but it's 98th percentile nationally (https://dqydj.com/household-income-percentile-calculator-2016/). Poaster above said it then phases out until $415k. Probably 90% of solos will qualify for that. (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34975285) |
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Date: December 21st, 2017 11:42 AM Author: disgusting nursing home gaping The Tax Foundation states: Create a 20% deduction for pass-through business income. The deduction is limited for households with more than $157,500/$315,000 that earn income from service businesses; these households are also subject to a test based on each business’s W-2 wages.
Anyone know what this W-2 wage test is?
https://taxfoundation.org/final-tax-cuts-and-jobs-act-details-analysis/ |
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Date: December 21st, 2017 11:47 AM Author: disgusting nursing home gaping Never mind, I think I found it. Looks like you'll need to ensure your salary is high enough to be double the expected deduction. For those interested:
Partnership and S Corporation TaxationAn individual taxpayer or trust generally may deduct 20% of domestic qualified business income from a partnership, S corporation, or sole proprietorship, capped at the greater of (i) 50% of the taxpayer’s allocable or pro rata share of W-2 wages paid by the partnership, S corporation or sole proprietorship or (ii) the sum of 25% of W-2 wages paid plus a capital component equal to 2.5% of the unadjusted tax basis of the business’s tangible depreciable property. The full deduction generally does not apply to specified service businesses, except in the case of a taxpayer whose taxable income does not exceed $315,000 for married individuals filing jointly or $157,500 for single individuals (with the benefit of the deduction phased out between $315,000 and $415,000 for married individuals and $157,500 and $207,500 for single individuals).
https://www.lexology.com/library/detail.aspx?g=067715b3-408c-4850-bef9-397ffc309dca |
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Date: December 22nd, 2017 9:24 PM Author: scarlet center sandwich so a solo that wanted to do this woudl need to pay himself a salary? (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34988302) |
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Date: December 23rd, 2017 8:31 AM Author: disgusting nursing home gaping Not a taxmo, but that's my understanding. Regardless, most solos should elect S corporation status and pay themselves a salary any way, because otherwise you're paying FICA on all your "self employment" income. Throwing away money. (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34990560) |
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Date: December 23rd, 2017 8:45 AM Author: irradiated plaza Wages limitation does not apply if you are under the income threshold.
https://www.wsj.com/livecoverage/tax-bill-2017/card/1513385693
Dec 15, 2017 at 7:54 pm ET How the New Pass-Through Limits Work in the Tax Plan The House and Senate blended their provisions on a crucial piece of the new tax break for pass-through businesses that aren't in professional service industries.
The House version was based on a company’s capital investments, giving firms the ability to get more of their income at a 25% rate if they had more capital invested.
The Senate’s version limited the tax break to 50% of wages paid.
The final version combines the two approaches. Now, the 20% deduction is capped at either 50% of wages or 25% of wages plus 2.5% of capital assets, whichever is greater.
Compared to the Senate bill, that’s a benefit for capital-intensive companies that don’t pay a lot of wages or any wages at all.
These limits only apply for businesses whose owners have individual income exceeding $157,500 or joint filer income of $315,000. |
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Date: December 23rd, 2017 9:36 AM Author: disgusting nursing home gaping 180 (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34990774) |
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Date: December 23rd, 2017 10:48 AM Author: Stirring den deer antler poormos getting hard over a deduction that starts phasing out at 315. xo-2017 (http://www.autoadmit.com/thread.php?thread_id=3831014&forum_id=2#34991104) |
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Date: December 23rd, 2017 10:50 AM Author: disgusting nursing home gaping Only on XO is $315k HHI considered poor.
$315k is 98th percentile HHI and most business owners claiming $315k HHI are actually making quit a bit more but running large expenses through the company. |
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Date: December 23rd, 2017 10:58 AM Author: Stirring den deer antler "Only on XO is $315k HHI considered poor."
Yes, in 2008, not in 2017 when xo is filled with alt right poors. |
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Date: December 23rd, 2017 11:23 AM Author: disgusting nursing home gaping Brother, $315k HHI is top 98% nationwide and probably top 5-10% of lawyers.
Most BIGLAWYERS here will never make more than $300k even with bonuses and will then find $200k in-house jobs.
The alt right poors here are a different story. |