€ [29] REVOLUTION (9:1992/111) €€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ REVOLUTION € Msg : 41 of 44 + 42 From : Roeland M.J. Meyer 9:1992/460.1 Fri 11 Jun 93 15:38 To : All Subj : Home office deduction. €€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ Hello All, Boy, I could go on about taxes, ptoiii! Feds: 36.0% State: 9.5% FICA: 7.5% Sales tax 8.5% -------------- Total 61.5% This means I get to keep only 39% of money I work real hard for! This is $38,000.00 out of a $100,000.00 paycheck that they let me keep! I am a computer professional so I am NOT allowed to work on a 1099. I am FORCED to work under a W-2. Ergo, withholding. See sec. 1706 IRS tax code. Withholding takes your money *before* you can spend it on deductable items. Thereby, robbing you of your deductions. The only way for me to avoid the withholding is to incorporate. That way I qualify for the State Corporate tax rate of 34% and an increased FICA to 14%, but exemption from Sales tax, for a total tax burden of 83%! No wonder corporations are leaving California! Now, they tell me I can't deduct my home office unless I spend 90% of my actual business time there. Since I can't deduct my office I also can not deduct my office equipment. This means that I have to open a separate office in a professional office building, at $900 per month. (about 10% of my gross) I'm done for. It's depressing! Can anyone in the Pacific Northwest help find me a job there? I can't afford paradise anymore. Roeland --- GoldED 2.40 * Origin: Point well taken,Morgan Hill,CA - (9:1992/460.1) € [29] REVOLUTION (9:1992/111) €€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ REVOLUTION € Msg : 42 of 45 - 41 + 45 From : Jim Watson 9:1992/0 Fri 11 Jun 93 23:17 To : Roeland M.J. Meyer Subj : Home office deduction. €€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ RMM> Hello All, RMM> Boy, I could go on about taxes, ptoiii! Don't. My primary account is my 'ol man's CPA firm. All except one other is a CPA firm as well, and that one is an internet hookup to a CPA firm. RMM> -------------- RMM> Total 61.5% RMM> This means I get to keep only 39% of money I work real hard for! I think it's actually less... RMM> This is $38,000.00 out of a $100,000.00 paycheck that they let me keep! RMM> I am a computer professional so I am NOT allowed to RMM> work on a 1099. I am FORCED to work under a W-2. Ergo, RMM> withholding. See sec. 1706 IRS tax code. Whether or not that's entirely applicable depends on how you are personally setup. And there's a few exceptions to being 1099'd. Employee, Corp., etc. Not many though. And it's very easy to avoid the first two classifications. Ergo, you get 1099'd. RMM> Withholding takes your money *before* you can spend it RMM> on deductable items. Thereby, robbing you of your RMM> deductions. And they get an interest free loan. RMM> The only way for me to avoid the withholding is to RMM> incorporate. That way I qualify for the State You forgotten about estimated payments? RMM> Corporate tax rate of 34% and an increased FICA to RMM> 14%, but exemption from Sales tax, for a total tax RMM> burden of 83%! No wonder corporations are leaving RMM> California! Items not for resale you must pay sales tax on. Most states anyway. Dunno about CA without looking. Suspect they are the same. Only "real" exemption I know to this is farm usage. --- Maximus 2.01wb * Origin: (9:1992/0)