How Retirees Pay Zero Taxes

[Amethyst]

Funny, I acquired selective-ignoring as a member of a family, and often apply it at work. Nothing like siblings who infuriate you one minute, and crack you up the next.

In almost 5 years, I have only ever put one forum member on "ignore." I did it so I would not be tempted to respond to their posts. So it was more about my weakness, than theirs.

Amethyst

Quote:

Originally Posted by MichaelB Learning to ignore what some people say is a skill I acquired at work and often apply at family get-togethers.

[pb4uski]

Quote:

Originally Posted by Beryl ....I said donating time AND money is American. ....

Thanks for the clarification.

[eytonxav]

Quote:

Originally Posted by MichaelB Learning to ignore what some people say is a skill I acquired at work and often apply at family get-togethers. Come on, folks. Lets take a step back, a deep breath, and remember we're friends who can disagree but stay friends.

Can we infer this is a sign of wisdom?

[KingB]

Quote:

Originally Posted by Amethyst In almost 5 years, I have only ever put one forum member on "ignore." Amethyst

I hope it is not me.

I love the way this thread went through several topics and I just have to put a mark on it.

[MooreBonds]

Quote:

Originally Posted by MichaelB Learning to ignore what some people say is a skill I acquired at work

lol....+1!

Quote:

Originally Posted by MichaelB and often apply at family get-togethers.

+10!

[FANOFJESUS]

I hope no one has but me on a ignore list. I like you all.

[REWahoo]

Did someone post something?

[sengsational]

Quote:

Originally Posted by Midpack Not to be too cynical, but complex tax codes that legally allow deductions and "tax expenditures" to narrow groups is exactly what campaign contributions buy. That's why they're never addressed despite populist support, they just add new ones and increase complexity. Campaign finance is at the root of many of our policy issues...often making debates on issues irrelevant.

That's why overturning Buckley vs Valeo would be one of the best things that could happen for more responsive (to the people) US politics. But, alas, I seriously doubt it will ever happen. I'm not sure if it was the American thing to do or not, but my donations went to The National Voting Rights Institute (NVRI) for years to help them fight this battle. But the primary mover/shaker, John Bonifaz, finally moved on.

[Tyro]

Quote:

Originally Posted by Amethyst Funny, I acquired selective-ignoring as a member of a family, and often apply it at work. Nothing like siblings who infuriate you one minute, and crack you up the next.

Sis? Is that you?

[Tyro]

Quote:

Originally Posted by REWahoo Did someone post something?

[pb4uski]

What was this thread about?

Oh, I remember now. Actually I was proud to be able to structure my finances so that my federal income tax last year, my first full year of retirement, was zero! Probably the first time since I was a young teenager.

[obgyn65]

I have only one name on my ignore list, I must say it is very helpful.

Quote:

Originally Posted by travelover Try it, you will like it.

[travelover]

Quote:

Originally Posted by obgyn65 I have only one name on my ignore list, I must say it is very helpful.

Yea, it is a feature that grows on you.

[pb4uski]

Quote:

Originally Posted by obgyn65 I have only one name on my ignore list, I must say it is very helpful.

None for me, but there have been a few close calls over the years.

[brett]

Years and years ago, in another life, I worked for the Canadian version of the IRS. I was in a group that conducted personal and business audits.

Computerization was used to scan returns for anomalies, but those that were got spit out were reviewed by our supervisors.

One type of return ALWAYS got marked for audit. It was the returns where the individual appeared to tithe at 10 percent. But when the donation and the income were matched, the numbers did not jive.

Invariably, on those returns that were selected for audit, the charitable donations were spot on.....while the income was understated by a considerable amount. They were the easiest audits for us as we had a goal of how much we should be recovering per hour of audit.

[haha]

Quote:

Originally Posted by brett Years and years ago, in another life, I worked for the Canadian version of the IRS. I was in a group that conducted personal and business audits. Computerization was used to scan returns for anomalies, but those that were got spit out were reviewed by our supervisors. One type of return ALWAYS got marked for audit. It was the returns where the individual appeared to tithe at 10 percent. But when the donation and the income were matched, the numbers did not jive. Invariably, on those returns that were selected for audit, the charitable donations were spot on.....while the income was understated by a considerable amount. They were the easiest audits for us as we had a goal of how much we should be recovering per hour of audit.

Well my heavens, how could this be Must be a solely Canadian thing, you think?

Ha

[ERD50]

Quote:

Originally Posted by brett Years and years ago, in another life, I worked for the Canadian version of the IRS. I was in a group that conducted personal and business audits. .... Invariably, on those returns that were selected for audit, the charitable donations were spot on.....while the income was understated by a considerable amount. They were the easiest audits for us as we had a goal of how much we should be recovering per hour of audit.

I'm curious about this. I would think it would be rather tough to find understated income. Wouldn't that take some detective work?

-ERD50

[brett]

It is very easy...unless it is cash income or cheques deposited in an offshore account.

Tax authorities have access to bank accounts-whether or not the taxpayer is cooperative.

If you have the bank accounts, it is a fairly simple process to add up the deposits, then subtract all the non income items such as term deposits being redeemed, etc. You will then have a handle on income and can go back and tick off the items that are accounted for. I can recall a few of my audits where the charitable donations to churches were especially high compared to declared income. Once I had the bank statements it did not take long to find the unreported income.

And if it is a cash situation, a net worth can be done for each year and the income deduced. The latter is more difficult.

[pb4uski]

Quote:

Originally Posted by brett Years and years ago, in another life, I worked for the Canadian version of the IRS. I was in a group that conducted personal and business audits. Computerization was used to scan returns for anomalies, but those that were got spit out were reviewed by our supervisors. One type of return ALWAYS got marked for audit. It was the returns where the individual appeared to tithe at 10 percent. But when the donation and the income were matched, the numbers did not jive. Invariably, on those returns that were selected for audit, the charitable donations were spot on.....while the income was understated by a considerable amount. They were the easiest audits for us as we had a goal of how much we should be recovering per hour of audit.

Just curious - if the donation and income numbers didn't "jive" how would you know that the individual "appeared" to tithe at 10%? versus that their contributions were just lower than 10% of their reported income?

IOW, if all you know is the reported income and reported contributions number how could you have any insight as to whether a taxpayer tithed or not? (absent some sort of profiling based on surname or whatever).

[ERD50]

Quote:

Originally Posted by pb4uski Just curious - if the donation and income numbers didn't "jive" how would you know that the individual "appeared" to tithe at 10%? versus that their contributions were just lower than 10% of their reported income? IOW, if all you know is the reported income and reported contributions number how could you have any insight as to whether a taxpayer tithed or not? (absent some sort of profiling based on surname or whatever).

I think what he is saying is, if they see $50,000 reported income, and $5,000 reported donations, that it raised red flags.

They maybe reporting all their donations, but not reporting all their income. Based on his observation that actual 10% donations was rare.

-ERD50