MACRS HY Depreciation Schedule

Just to show how big of a dork I am, I wanted to share a spreadsheet that I made in Excel originally, then realized it was simple enough to even be used as a Google Document. It’s set up to put in the asset information you have, then figure the MACRS depreciation based on the half-year convention. The depreciation schedule is on the first tab and the MACRS table it refers to is on the second tab.

MACRS Half Year Convention Depreciation Schedule



Somebody has to pay taxes

The bar chart presented on the National Debt A...

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A lot of people are getting fired up talking about significant income tax reform. Everyday there is someone posting on Twitter about income tax being unconstitutional or that the founders would be rolling in their graves about it. While that may be a fair point, no one seems to offer a viable solution.

It would be nice to have a more transparent tax system that is easier for individuals and businesses to comply with. That’s where the fair tax and flat tax supporters start their argument. However, neither of these taxes would get a broad base of support when most taxpayers realized they would be paying significantly more than they are now under our convoluted system of deductions, credits, and income exemptions.

The truth is, everyone would like the total tax burden to be lower than it is now. However, they don’t want to give up any government spending programs to achieve this reality. That fact has made it almost politically impossible for any politician to be elected with a platform based in reality. Everybody wants to go to heaven, but no one wants to die to get there.

It’s going to take a national awakening and a big shot of reality to restore fiscal balance to our current system. There really are only two options to choose from: less government support and lower taxes or continued mass welfare programs and acceptance of significantly higher taxes to fund those programs.

So are we hooked on government programs like a crazed addict or can we have an honest discussion about the necessary functions of government and be willing to cut anything that doesn’t fit that definition? I don’t think we can cut enough to make a significant difference without cutting something that hits too close to home for most taxpayers.

I think we need to prepare for significantly higher tax rates in the future just to support the program levels we currently have, and increasing tax rates as the government continues to bloat. Then we need to figure out the rules of the bloating system and figure out how we can get our piece of the taxes back through programs that are increasingly applying to much of the middle class. Big brother wants to hold your hand, and he’ll push you down just to prove you need that hand.

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Iowa tax policy activity

Cedar Rapids, City Hall, photographed by User:...

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The Des Moines Register has a nice summary on the activity that the state government has taken, will likely examine, and also notable items that are pretty much dead in the water.

A few items that have cleared the hurdle into approved territory are the Taxpayers First Act that reduces funding for university sabbaticals and a few other government spending items and state tax exemption for active duty military pay. It is also now illegal to impersonate a decorated military veteran in Iowa and certain state agencies and pension funds are now prohibited from investing in companies that do business in Iran in an effort to reduce support for terrorism. I’m glad to see some spending cuts rather than just grasping at revenue straws and some recognition of our military personnel.

A couple items that are likely to see activity are restrictions on the ability of animal rights activists to take undercover videos on producer premises and the transformation of the Economic Development office into a public/private partnership. I think both of these moves should be positives for Iowa businesses as the activists are usually from out of state groups that have no vested interest in Iowa and forming a public/private partnership in Economic development should bring some more perspective to the table and perhaps make the agency more nimble.

Several items have been shot down, some making pretty good sense, others may come back to life under further review. Same-sex marriage has been put to rest and Cedar Rapids flood aid has been taken off the table after the citizens of Cedar Rapids refused to pick up their part of the tab.

The state has refused to legalize in-state internet poker gaming, but this is set to be reviewed further by the state gaming commission. It seems to me that this may come back into consideration as a revenue generator since the tax hike on brick and mortar gross gambling revenues (from 24% to 36%) was also shot down. Can you imagine owning a franchise with royalties at 24% of gross revenues (and then having the audacity to think it’s not enough)?

Education policy changes regarding private school accreditation and hours instead of days requirements for education were also rejected. We still won’t need a valid identification to vote (wonder who this helps…) and there is still no limit on “Red Light Camera” fines aka the city pension re-balancing fund.

I also wanted to point out a little typo egregious error in the comment left by MercedesSLK (obviously a low income taxpayer) who asserted that commercial property tax relief was unnecessary because Iowa “ranks near the top of states with a favorable business climate” as the Tax Foundation has ranked Iowa as 45 out of 50 for business climate (yeah, that’s the bottom 5).

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Attention Omaha Business Owners…

The Douglas County Assessor’s office will not be sending out pre-filled personal property tax returns this year. In an effort to reduce operational expenditures, these courtesy returns will no longer be sent out. However, they do have a free e-filing system that is up and running.

Your personal property tax is still due by May 1, so be sure to get online and get registered, or remind your accountant if they haven’t been watching this closely. The online services can be found here:

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To Omaha and Council Bluffs Non-profits

The IRS, under a one-time relief program, will allow small tax exempt organizations that have not filed returns for 2007, 2008, and 2009 to keep their tax-exempt status if they file a return by October 15, 2010. They have also published a list of organizations that they expected to hear from, but have not heard from.

The list is published by state and I have included lists for Iowa and Nebraska filtered for Council Bluffs and Omaha noting about 67 organizations in Council Bluffs and about 622 organizations in Omaha that the IRS is looking to hear from. Click here to see the complete listing for each state on the IRS website.

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