I own rental property, not by choice, last year I had to replace the roof and the plumbing in the house. If it was not for the deductions there is no way I could have afforded this.
2007-12-06 03:52:23 · 6 answers · asked by me45404 3 in Business & Finance ➔ Taxes ➔ United States
Wayne Z has it wrong.
All income taxes will be eliminated, therefore any of the deductions from income are no longer necessary.
The Fair Tax applies to NEW goods and services at the RETAIL level. There are NO TAXES on businesses. Your rental property is a business. You would have a lowered cost for your business to have the roof replaced. (The service that does the roof repair will have no SS tax or Self employment taxes and will have no business income taxes to pay.)
Your business will have SS tax or business income tax to pay. Your monthly rent "costs of doing business" will be reduced. (You can calculate exactly how much this will drop.) You will collect the Fair Tax if you are renting to the resident at the retail level. (If you rent to a comm. business there would be no tax) You may find out that your tax and compliance costs will exceed the 23% inclusive Fair Tax and the actual rent could be less than you currently charge to produce the same profit, or you may charge the same rent and make a greater profit. (unless your competition lowers their rent to get more of the market share)
The costs for you to operate your business will go down. There is a possibility that your profits could go up! You will not have to maintain all the receipts for filing corporate tax reports, no quarterly estimated deposits for income taxes. Do you really think you need to keep the tax deductions?
The Fair Tax will help your business.
2007-12-07 15:49:53 · answer #1 · answered by chiefcook 3 · 0⤊ 0⤋
Yes. If the average American saw the ridiculous numbers of people that are receiving Section 8 housing, FIP, Food Stamps, SSDI/SSI, heating assistance, etc. they would flip. This is why the middle class is disappearing. The welfare state eats away at tax dollars of the middle class. Furthering the middle class slide into poverty.
2016-05-28 10:53:15 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Under the "Fairtax" there are no deductions for anything like this. In fact, that roof would have cost you 30% more.
Don't worry too much. The Fairtax has very little chance of ever becoming law. Sure, it will be used as a political football by many candidates but, even they know, it will never become law.
2007-12-06 03:58:23 · answer #3 · answered by Wayne Z 7 · 3⤊ 2⤋
All deductions go away.
Deductions are a deduction from income tax. If you pay no income tax, how can you deduct from it?
2007-12-06 03:59:54 · answer #4 · answered by Anonymous · 0⤊ 0⤋
The fair tax will never pass.
2007-12-08 00:28:38 · answer #5 · answered by Gary 5 · 0⤊ 0⤋
Wayne Z is correct even if someone did, for some reason, give him a thumbs down on his answer.
2007-12-06 04:01:57 · answer #6 · answered by Judy 7 · 1⤊ 1⤋