Tax Court Allows Long String Of Horse Losses
Photo credit Midge Ames. Originally published on Forbes.com. A long string of losses in a horse-related business may well attract IRS attention. Don’t despair. If you...
Tax Planning For The High Salary Pauper
Back in days of very high marginal rates – 70% federal – people who made their money by working got a break. Their was a maximum tax on income from, you know, working. And there were shelters. Many were sketchy and abusive and could get you in trouble, but some like low-income housing were blessed. You could defer your income and when the deferral turned around it was taxed at capital gains rates.
Now it seems that there are breaks for everybody, except the high salaried. Of course, if you are prudent with a very high salary you will accumulate net worth and ultimately be able to do some fancy stuff, if you are so inclined.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.