Chart says it all right there. But like you said, they don’t let the facts get in the way of good political sales pitch.

The effective tax rate of the top 1%? I guarantee you it’s much higher than the average of 25.6%, as the higher you go up the ladder in terms of income in that group, there are NO further deductions once you hit that top tax bracket of 37% on income over $647,850 for married couples.

I have an effective rate of 38.6%, while the marginal rate is 37%. I pay my “fair share” and then some.

That’s 37% federal tax on every dollar above that. If you live in high tax states like New York, NJ, Cali and Illinois, with state income taxes amongst many other local taxes and fees you are well above 50%.

As a tax attorney/financial advisor myself, their are no more real meaningful “loopholes” for most people depending on what they do.

You can move to Puerto Rico and set up residency, that’s a good one!

Section 7702 is a good one for the long term.

Everybody can take advantage of the best “loophole”, a Roth IRA and Roth IRA alternatives like IULs under 7702

Deferring taxes? No thanks, tax are on sale today, will never be lower through 2025

Cap gains on pinball sales?

Well now I’m interested. I know of some sellers who have taken advantage of the current market to sell off nice collections. I’m not talking one or two pins but maybe 20 pins to the tune of $80,000. I’d assume a significant part of that was gain in appreciation. And, no tax?

The IRS when you deposit $600 into your bank account:

A huge % of audits, maybe 80% or so, are “letter audits” based on what you claimed on you tax return as a deduction or what you didn’t claim as income that they have a 1099, K-1, W-2 for etc.

The chance of an in person audit has gone up significantly now with 87k more agents coming. The IRS is still the most inefficient outdated government agency and that’s saying something.

Btw, they promised you that no one making under $400k per year will be affected by the recent tax and spend climate bill.

You would have to be “in person” audited, with bank accounts reviewed and even then, mods, labor etc raise the Cost basis to offset sales price. And IF you had losses I would, as result of an audit getting that far, file those purchases and sales on schedule C and write off everything I could possibly associate with that “business”

And, if you fall under certain income levels you won’t pay cap gains tax.

This might be the most interesting thing in this thread. What in the actual f?

Or..you know close the loopholes that no one else can use. But why would we do that right? You do understand that 20% of 30k is way more impactful that 30% of 1 million right? The fair share thing is because everyone knows they can do those loopholes and widdle down their 'income'. It's not a secret. Maybe misunderstood by many, but the paper numbers while 'true', don't paint the entire picture and we all know it. It's not about wanting them to pay more, it's about wanting them to quit doing exactly what you state they do above.

Do facts and data always matter or is it just for todays topic,just curious.

Speaking of failing to truly close a loophole for the wealthy when they just had the chance?

Look up “carried interest rule”. Got kicked out of this bill at the end thanks to Sinema.

Hypocrites screaming “pay your fair share”

Here’s another loophole for the wealthy doctors and lawyers.

$32 billion of student loan debt already canceled. Now they want to cancel the rest!

A decision is coming in SOON. Has anyone here paid off a student loan already?

You won’t find it on their site anymore either. It became a meme so fast they took it down. This was a few weeks ago but it’s common knowledge it was legit for how fast it spread.

Take it with a grain of salt. When my dad worked for the USPS in downtown Saint Paul he had access to their private shooting range in the basement. Full autos were discharged there from time to time. Now, I’m guessing your mailman doesn’t carry, but depending on the position, some USPS workers do but not mail carriers that I know.

That being said it does raise some eyebrows from an IRS perspective. It does make sense if some of the felony level tax offenders are into some other “stuff” too while being investigated.

Yeah, if it's legit, I would assume it's not for a desk job pushing the paperwork.

4,461 firearms and about 5 million rounds of ammunition are what the IRS had in 2017. I can only imagine what its up to now in 2022.

So you're defending the rich while simultaneously condemning the poor for buying the very things that make the rich rich.
You've got everything upside down, inside out, and backwards.
The rich depend on the poor, can't live without them in fact. Neither can exist without the other.

Imagine what would happen to the rich if the gov't stopped handing out money!

My Family paid off their student loans without help.

Capital gains???

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The ad only applies to a small number of positions (approx 300) within the Dept.

https://apnews.com/article/fact-check-IRS-special-agent-gun-028823423140

I am sick and tired of people saying they pay their fair share,while this is true for many its not true for everyone.
signed J Bezos

I paid mine off too. Some in Congress want to cancel student debt for everybody!

They need to reign in these colleges, talk about inflation.

This is one area where we actually agree. While the system around funding/schooling isn't perfect by any means, this isn't the solution. It's more dumbing down of the education system and only going to lead to higher education costs - not to mention taxes.

I paid my way through college by fixing pinball machines

I just wanted to say that.

Carry on.

I learned to ride the shovel,No handouts all of my bonuses if any were taxed around 40%

Then the $220/hr would be taxed as regular income.

So if after expenses and all that you are even or selling at a loss. Theres no need to do any paperwork correct?

I think you technically should, but I wouldn’t worry about it. It’s a risk, but a very low one imo.

Something isn't adding up here.

https://abcnews.go.com/Politics/treasury-department-rejects-gop-claims-irs-agents/story?id=88495613

Imagine being so dumb - even after receiving a formal education - that you sell your soul to the politician who is willing to let you welch out on your student load debt. But to make things better, the politician will even smear lipstick on the pig by referring to it as 'loan forgiveness' so you don't feel so bad about being a loser. One hand washes the other....and the filth all runs onto the person who actually pays his debts. Sweet.

I've never agreed that 'resale' goods should be taxed, but I understand why they are -- it has more to do with people buying and selling for profit exclusively (like flippers) than it does with people just selling old things they don't want anymore. Unfortunately, like most laws/rules, the people not abusing the system get screwed by it.

now I know why so many of these guys keep their pinball proceeds from their sales in cash in their safe, and use the same cash when buying new games. Seems ridiculous we have to report gains when you make a profit without being a business, but you can't claim a loss when you sell.

You don't want to consistently land on a "SARS" report with you bank deposits.

When you see the term "cash on the glass" gets the pin, it's up to you to figure out what the next steps might be.

The IRS will still have their hands full cracking down on small business owners to come after onesy/twosy pinball sales.

Oh, and btw, the BILLIONS in Covid fraud? They have a rich pool of $$$ to dive into that current enforcement can't even scratch the surface on.

is it any worse than declaring bankruptcy over and over because you can and flat out not paying what you owe people, because you can afford lawyers to deflect, and blatantly lie about things recorded on video repeatedly, oh and what else..tax evasion?...because that was the other option. It's not a one sided issue.

"So you're defending the rich while simultaneously condemning the poor for buying the very things that make the rich rich.
You've got everything upside down, inside out, and backwards.
The rich depend on the ", can't live without them in fact. Neither can exist without the other.

Sadly, you are the one who is upside down and backwards. There are no rich and poor people - only varying degrees of wealth and perspectives. The poorest person in the USA lives a life of luxury compared to the average poor person in India.

But let's use those terms for a minute. The rich don't need to poor nearly as much as the poor need the rich. It's hardly a 50/50 relationship. If you don't believe me, bear in mind that every day more and more human functions are being replaced by robots and computers and machines. Those are all poor people being replaced - not rich people. Don't presume there is equality in every walk of
life; there isn't, never was, and never will be. Thankfully, too.

Poor people should be condemned when they do stupid things - like buying Nike shoes when they could buy much less costly shoes that are every bit as good. Like buying cigarettes. Being poor doesn't absolve anyone of personal responsibility or having to use their brains, no matter what TV tells us.

I'm sure there are some 'misbehavers' among the rich - it would be impossible for there to not be. But it's a bromide of the worst sort to stereotype the rich as evil targets...most people who are wealthy either had it dumped in their lap or worked very hard for it. That's capitalism, and it's the backbone of success.

The average rich person does far more for his fellow man than the average poor person.

"is it any worse than declaring bankruptcy over and over because you can and flat out not paying what you owe people, because you can afford lawyers to deflect, and blatantly lie about things recorded on video repeatedly, oh and what else..tax evasion?...because that was the other option. It's not a one sided issue."

Are you suggesting two wrongs make a right?

And...the number of people who do what you suggest is tiny; the number of people who are lined up to default on their loans and join the ranks of 'loser' is massive. Moreover, no one enjoys the benefits (?) of bankruptcy at the bequest of the US government...the losers who have their loans erased do so with full government support. Parasite Life at its finest.

Schedule C, small business owners like painters, hairdressers, restaurant owners, you name it have a bullseye on their backs. You get a 1099 or pay one out. Bullseye. "Semi Cash businesses".

If you are a W-2 employee with no other deductions like "rental properties" etc. your chance of audit is MINIMAL.

My business is taxed as Schedule C because i'm a 100% owner. Despite operating as an LLC you get to select how you want to be taxed as for tax purpose, C-Corp, S-Corp etc.

The least audited entity? I think it's still "partnerships". If you operate a small business, you set up the LLC for state law purposes and asset protection and then choose to be taxed as a partnership, with your spouse, if it's not some professional designation, like doctor, lawyer, cpa etc.

My crew does about 700 returns or so (not that i want to but as a service to our clients), maybe one in person audit (rightly so), maybe some letter audits. "Hey, can you justify this charitable deduction credit you took last year".

At some point you have to step back, look at the whole thing, and realize what a wonderful tyranny we've built. I am a government subcontractor to multiple federal agencies and I can tell you that if you saw the waste and scope of incompetence happening everywhere, you would not even think of reporting a profit on your insignificant freakin pinball machine sale.

Keep as much of YOUR money that YOU earned in YOUR pocket for YOUR family, don't give it to these clowns.

Lol. The poor don't have a right to eat at Chili's without you calling them out? If you make below $____ you can't enjoy any niceties in life without the wealthy calling them grifters. Just eat your gruel and stay in your poor lane and don't bother me with the systemic problems that don't effect me. Man, fuck off with this nonsense. This right here is why I'm in the process to be rotordaves' neighbor.

Ding, ding, ding...winna winna chicken dinna

I started earlier this year keeping track of my acquistion cost and sale costs. I add mods into the acquisition cost. Just a small excel spreadsheet just in case anyone questions anything. But I dont have people make reciepts or anything so its all the honor system i guess.

My bank has asked me a few times why ive deposited 9k here, withdrawn 10k there. Ive told them its pinball. Hard to explain it to them I guess.

Also trades complicate things...

What I’m getting from this thread. The government is spending to cause inflation on our pins. When we sell them they tax us. Boooo!

You earn income (sale minus expense), gotta pay tax. Just how it works.

Huh… my safe deposit box doesn’t ask me these questions.

But I’ve already paid tax on that income, several times.

No one likes to pay tax, or more tax. I think at least we can all agree on that. I think most of us also agree that the way they spend the tax money is wasteful. Where we tend to disagree is what to actually spend the taxes on, but ultimately it still comes back to even if they spend it on what we want, most of it is wasted rather than actually going to who it is supposed to go to.

The problem is the bank still owns the safe deposit box.

As someone who has never bothered with safe deposit boxes, you aren't required to declare are you?

The extra 5k you got for selling a game over the cost you had into it? That money came from
Someone else.

When Warner Bros. educated your kids on the inevitability of paying state and federal taxes.

Some banks have rules against storing cash in a safe deposit box, but most do not. Cash is NOT insured if you do this. I keep a certain amount around for large cash purchases like pins. When I sell something, cash goes back in the box fund.