[CAUT] PTG Dues

[Michael Magness]

On Jan 8, 2008 7:26 AM, Carl Root <carldroot at comcast.net> wrote:

> David,
>
> I've been filing my own taxes for thirty five years.
>
> Many years ago,I thought about hiring an accountant that had been
> referred to me by another technician.  After the initial office
> visit, I decided, as a courtesy, not to charge him for the
> consultation.  I knew more about some aspects of running a business
> than he did.  (Specifically IRA contributions by your spouse working
> for you, as I recall.  The laws have changed since then and she no
> longer works for me.)
>
> Several of my private clients are accountants.  If I ask them
> questions and they independently come up with the same answer, I
> consider it to be reliable.  The tax code can get rather complicated,
> but schedule C issues are fairly straight forward.  Read the
> instructions, as Israel said.
>
> Carl
>
>
> On Jan 8, 2008, at 8:12 AM, Porritt, David wrote:
>
> > This thread on taxes kind of amuses me.  We get our chuckles from time
> > to time when lay people make comments about pianos that show a lack of
> > understanding of the instrument.  I'm sure any tax accountants who
> > might
> > read this would get a similar chuckle out of our comments.
> >
> > The last couple of tax law changes have been referred to as the "Tax
> > Accountant's Relief Acts" since they make the tax laws so complex that
> > it takes a tax specialist to comprehend them.  I send all my tax
> > work to
> > a CPA who only does taxes.  That's his area of expertise.  Just as I
> > can't recommend that he learn to tune his own piano and purchase the
> > requisite tools to tune his piano each year, he doesn't recommend
> > that I
> > learn the tax code and buy the necessary software to file my own tax
> > return once a year.  I can tune his piano better than he can, and
> > he can
> > do my taxes MUCH better than I can.
> >
> > dp
> >
> > David M. Porritt, RPT
> > dporritt at smu.edu
> >
> > -----Original Message-----
> > From: caut-bounces at ptg.org [mailto:caut-bounces at ptg.org] On Behalf Of
> > Carl Root
> > Sent: Tuesday, January 08, 2008 6:32 AM
> > To: College and University Technicians
> > Subject: Re: [CAUT] PTG Dues
> >
> > I assume that most salaried technicians do some outside work.  The
> > IRS wants you to declare that income which would necessitate your
> > filing a schedule C.  As long as you're making an attempt to run this
> > side business profitably, that is, not claiming expenses in excess of
> > income year after year, then I don't see the problem.
> >
> > Carl D. Root, RPT
> > www.rhythmimages.com
> >
> >
> >
> > On Jan 8, 2008, at 12:05 AM, Israel Stein wrote:
> >
> >> At 11:00 AM 1/7/2008, caut-request at ptg.org wrote:
> >>> IF your only source of income is working for someone else, and you
> >>> are required by your employer to belong to a trade organization,
> >>> and/or your employer requires you to purchase your own tools to do
> >>> your work, then they are deductible.
> >>> Willem (Wim) Blees, RPT
> >>> Piano Tuner/Technician
> >>> Honolulu, HI
> >>> Author of
> >>> The Business of Piano Tuning
> >>> available from Potter Press
> >>> www.pianotuning.com
> >>
> >>
> >> Folks,
> >>
> >> If anyone here believes the above as written and follows this
> >> advice - they  might be unpleasantly surprised.
> >>
> >> What we are dealing with here are Employee Business Expenses -
> >> which are subject to a 2% limitation. Which means that this would
> >> be deductible only if your expenses of this sort total more than 2%
> >> of your Adjusted Gross Income and you can only deduct the portion
> >> that is in excess of your Adjusted Gross Income. Which means:
> >>
> >> If your pre-tax salary is $55,000 for the year, and you have
> >> adjustments to income (such as certain moving expenses, eligible
> >> IRA contributions, alimony payments or other such deductions) of
> >> $5000 so your Adjusted Gross Income is $50,000, then you can't
> >> deduct anything less than 2% of 50,000 - which is $1,000. And you
> >> can only deduct amounts in excess of $1,000 - that is, if you spent
> >> a total of $1,112  on dues and tools, you can only deduct $112.
> >>
> >> And if you don't believe me, look at your IRS Schedule A to Form
> >> 1040 - and read the instructions.
> >>
> >> I wish people who write stuff would research it before they write.
> >>
> >> Israel Stein
> >>
> >>
> >
> >
>
>
David you and I are again 100% in agreement. The tax codes change each year,
what's allowed by state and federal as deductions changes each year. I have
it from a reliable source that if you asked 5 IRS agents the same question
you would very probably get 5 differing answers.

I guess the best way to put it is the current US tax code is half again as
long as the Bible and when have you ever seen any group of people who
couldn't find something in the Bible to bolster their particular opinion?

I also believe that anyone who works from their home and does their own
taxes is waving a large flag at the IRS saying "PLEASE, COME AUDIT ME"! I'm
not saying they couldn't stand up to the audit but who can spare the time?

Mike

-- 
The secret to creativity is knowing how to hide your sources.
Michael Magness
Magness Piano Service
608-786-4404
www.IFixPianos.com
email mike at ifixpianos.com
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