Lonnie Deals and Taxes? - Posted by mike
Posted by mike on April 02, 2002 at 21:46:42:
ok, I read the post about cash method accounting, doing Lonnie Deals, and frankly, don’t understand it.
Instead of squeezing every last drop out Uncle Sam to get that extra $100 or $200 a year savings on your taxes, isn’t there an easier way??
It seems to me it would be the capitol gains tax, no?
I mean If I have property bought at $3000, and sell it for $5000, wouldn’t I have a capitol gain of $2000?
I am ready, to get my first deal done. I have plenty of $$$ to invest. But I just do not understand the tax part of it. If for simplicity sake, I wanted to just pay capitol gains tax, what would it be? In the Cash method example, he said “assuming you are in the 28% tax brackett…”
Isn’t this assuming you have a JOB, and a regular income?
Isnt there a way to seperate the two? I don’t see how one really applies to the other. I mean one is a “income” tax and the other is an investment tax, no?
God I’m confused. If anyone is willing to take me under their wing, and give me some examples I’d be really happy.
You can email me at firstname.lastname@example.org.
Why couldn’t it be simple and say “if you have a capitol gain of under $100,000 you pay XX% on the gain” then bingo, it would be simple.