FedEx, Taxes, and Paying for Infrastructure

#105
#105
Tastylicks said:
they do not. Small businesses dont have legions of accountants on the payroll to do it as well as the big boys
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For several decades now, small businesses have had the ability to fully write off most depreciable personal property assets under Section 179 in the year the asset was placed in service.....
 
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#107
#107
Sandman 423 said:
You can be dismissive if you like, but I don't get why you are saying that they don't have the means to take advantage of the same tax incentives when you have no idea whether they do or not.
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89% of American small businesses (the definition I used earlier) have less than 20 employees. If you think a business with 19 employees or less has the time and means to digest and take advantage of the tax code as well as companies with 500+. employees, you are the crazy one, not me :)
 
#108
#108
McDad said:
Poll the members here. RavinDave, hog, Clearwater, LG, huff, vfh...all the folks who are self employed or in corporate america. ask them what they do at tax time when faced with the option of sending 50k to DC or 50k on a vehicle used in their business.

This isn't waste. This isn't poor decisions. The money is out the door either way. This is the crux of your comparison and it actually illustrates the best decision and most responsible decision.
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Actually disagree here. If you are a C "Corp" and you are sending $50K to DC, you have $238K in profits ($238K * 21%). Most companies are not going to go out and buy a depreciable personal property asset at $238K just to avoid sending $50K to DC.

In your example, you would still be sending $39,500 to DC if you bought a vehicle.
 
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#109
#109
BigOrangeMojo said:
Actually disagree here. If you are a C "Corp" and you are sending $50K to DC, you have $238K in profits ($238K * 21%). Most companies are not going to go out and buy a depreciable personal property asset at $238K just to avoid sending $50K to DC.

In your example, you would still be sending $39,500 to DC if you bought a vehicle.
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Yep.

I go thru this mental exercise yearly, around March, only to get the same result.
 
#110
#110
Tastylicks said:
89% of American small businesses (the definition I used earlier) have less than 20 employees. If you think a business with 19 employees or less has the time and means to digest and take advantage of the tax code as well as companies with 500+, you are the crazy one, not me :)
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Your'e right, they all probably use turbo tax.:rolleyes:
 
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#111
#111
Tastylicks said:
89% of American small businesses (the definition I used earlier) have less than 20 employees. If you think a business with 19 employees or less has the time and means to digest and take advantage of the tax code as well as companies with 500+. employees, you are the crazy one, not me :)
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You say that a lot but I am not sure it's ever accurate.
 
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#113
#113
Tastylicks said:
they do not. Small businesses dont have legions of accountants on the payroll to do it as well as the big boys
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Why would they need legions of accountants if they are small business? A business that does $10M/year in sales can probably do just fine with 1. You think like a government employee. more... bigger... = better
 
#114
#114
BigOrangeMojo said:
For several decades now, small businesses have had the ability to fully write off most depreciable personal property assets under Section 179 in the year the asset was placed in service.....
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Doing that continuously eventually bites you in the azz
 
#115
#115
BigOrangeMojo said:
Actually disagree here. If you are a C "Corp" and you are sending $50K to DC, you have $238K in profits ($238K * 21%). Most companies are not going to go out and buy a depreciable personal property asset at $238K just to avoid sending $50K to DC.

In your example, you would still be sending $39,500 to DC if you bought a vehicle.
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Your intuition is spot on, I bet. The folks I work are mostly S corps, some Cs, and a few sole proprietors. S and sp tend to buy the vehicle. Cs tend to buy business equipment.

You think C corps should approach the tax due amount differently?
 
#116
#116
hog88 said:
Doing that continuously eventually bites you in the azz
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It will bite you don't place assets in service one year. However, I would rather delay giving the IRS my $$$$ than giving it to them upfront.

If FedEx ever cuts back on capital expenditures (or full 100% bonus depreciation is eliminated), they will have a huge tax bill since they've already claimed all their depreciation expense.
 
#119
#119
volfanhill said:
Those golden parachutes are like coaching buyouts. You want a proven CEO you are going to pay out the ass for that parachute. Not saying I like it. But I get it.
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Proven CEOs seem to have about the same kind of record that proven coaches do; probably better to save the money. Lightning in both places seems to strike once or twice a year, all the necessary variables come together, and a coach or CEO looks invincible ... sorta like Ed Orgeron. We seem to be extremely limited in gods (or satans) and visionaries these days.
 
#120
#120
volfanhill said:
You don't know if they did not see a price break. How do you know it wouldn't have gone up more without the break. Furthermore, those shareholders are actually who we should care about. Everyone thinks they are fat cats hanging out on the beach. They are not. My companies biggest investor is a states teachers union retirement fund. We live in a world of institutional investing.
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I've always wondered just how many people understand the relationship between steadily increasing stock prices and retirement funds. Lots of money chasing investments and the law of supply and demand in play.
 
#122
#122
AM64 said:
Proven CEOs seem to have about the same kind of record that proven coaches do; probably better to save the money. Lightning in both places seems to strike once or twice a year, all the necessary variables come together, and a coach or CEO looks invincible ... sorta like Ed Orgeron. We seem to be extremely limited in gods (or satans) and visionaries these days.
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Being a CEO of a Fortune 500 is a club. They sit on each other’s boards and when one gets shoved out the door there’s always a landing spot.
 
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#123
#123
hog88 said:
Being a CEO of a Fortune 500 is a club. They sit on each other’s boards and when one gets shoved out the door there’s always a landing spot.
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true, once you are in the club it is literally (almost) impossible to screw it up.
 
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#124
#124
luthervol said:
No it's not.
I'm just pointing out the idiocy of corporate love combined with government hate. They are far more similar than dissimilar in many ways..
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There's one way to start fixing both, and that's campaign finance reform and tax reform (simplification - flat tax). The tax code and some targeted regulatory relief is where those corporate inputs are paid back, and why some corps and some people pay little in taxes. Campaign finance is bribes and nice sections of tax and regulatory codes are the paybacks. Those donations are spread across the board to Rs and Ds alike to grease the skids, and it works. Now if you want to get to your definition of "fair", you have to look at congressional graft, and who benefits and why - redistribution of taxes gets a lot of the lower classes stimulated enough to vote. One huge part of the deal is professional, lifetime politicians and campaign and lobbying graft is how they stay there; people participating in the scam know it's better to keep a bent politician in office than risk what you get with a newbie. With those funds and advertising, you can always convince the less sophisticated that some alms is worth a vote - the multiplier effect.
 
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