Exposed. IRS secret files. Taxes

Net worth is not income. Paying taxes on unrealized gains would be shitty for everyone. I'm a big proponent of tax reform - like increasing capital gains rates, closing a lot of loopholes, and other things - but the only way to address this "avoidance" being described is taxing unrealized gains and that's just plain wrong IMO. We'd also have to allow writing off unrealized losses and everyone would have a heart attack if the ultra rich could do that. I believe that group should be paying a lot more but this isn't the way IMO.

I am a long way from a billionaire, but I spend a lot of time and have a great accountant that helps up get as close to possible to a zero or very low tax bill.

If our income is going to be such that we will end up paying a large amount of tax on, we work to find expenses that will bring that total down. We pre-purchase our farm inputs. So in November and December, we sit down and figure out what we will be planting the following spring. How many acres of soybeans and how many acres of corn (there are a lot of factors determining what crop is planted on what piece of ground). We pre-purchase all our seed. Then we also pre-purchase our fertilizer and chemicals.
We will also purchase all the fuel we will need for the following year. I buy Ag diesel, road diesel and gasahol in bulk.
Then we look at how these purchases has offset out income. If we need more expense, we look at pre-purchasing cattle feed.
Car dealers know that a LOT of new pickups will be sold in December, because that is another expense that can offset income.
We have to be conscious all year of how the income/expense ratio is going. Some improvements like installing drainage tile, or new buildings, etc. need to be planned out.
Our income happens about twice a year. We market our livestock Jan-Mar. So all income from that is paid in those three months. Grain is harvested in the fall, but we may or may not sell it. It can depend on overall price of the grain. How much storage is going to cost us (as we have very little on farm storage).
And then again - income is not a guarantee! It is entirely possible to for expenses to out pace the income. Those are not great years.

You also have to start looking at what you are purchasing. It, of course, needs to be a deductible expense. But sometimes you may be better off paying the income tax. It can be a long and complicated process, and it is the worst part of farming (for me).

So these big guys are not doing anything wrong, as long as they are following the regulations. They are (hopefully) infusing the economy with money that they are spending to offset their tax bill.

And just an FYI on farmers trying to avoid paying a large income tax bill- don't forget we have to pay a VERY large property tax bill. We pay many 10's of thousands of dollars in property taxes every year. This supports our schools, roads, fire departments, etc.

No one is criticizing you for posting this article. Really.

I’m not sure why you are responding so defensively. 

People are simply stating, in a non-judgmental way, the things that the article doesn’t say. The article is a good example of how one can present/interpret data/facts in a way that makes biased conclusions. They presented truths, but only partial truths. The rest of us have rounded out the picture with additional facts/truths.  

No one is saying that you did or said anything wrong. 

I’m with you, revirdsuba99. Just because something isn’t illegal doesn’t mean it’s ethical or moral. But I also don’t believe one can amass that kind of wealth by being an ethical or moral person, either. 🤷🏼‍♀️

I didn't read the article. Are they really "secret" and if so, I have a huge problem with a leak.

I think this is super important to say this again.

Bezos is worth billions. That does not mean he has the actual cash in the bank. He has stock. He is worth more when stock price increases and less when it decreases. He should pay taxes only when he sells stock but not on unrealized gains/losses.

I agree he should pay his taxes. On their income. Not on their investments or on the company’s income (Amazon should be paying those taxes, not Bezos)

I hope they find the people responsible and they are prosecuted. It is not okay, no matter who's are leaked. I do believe those running for and holding political offices should be required to disclose.

Pisses me off that I paid more taxes!

The crazy thing about wealth is that wealth begets wealth. Their money makes more money without much, if any more, effort on their part. During the pandemic, while many businesses closed and people lost their jobs, the rich got richer. After the mid-March crash, the markets took off. Wealth increased while the rich slept. Passive wealth. The rich own real estate that appreciates in value thus increasing their net worth. More passive wealth. They get tax breaks for being business owners or property owners. Add that to their net worth also. Meanwhile, single mothers like you can't get a leg up because the tax code doesn't favor you and was not lobbied for in Washington by rich Senators and Congressmen who just look out for their own. 

End tax avoidance!

Please watch this video by Rutger Bergman at Davos a few years ago.

youtu.be/r5LtFnmPruU

Funny how when "the little guy" spends money taking care of their home it's not tax deductible eta: in that tax year in part or in whole. As a business can. 

Hey, they spent money. They helped the economy, right?!?

But, it's not for A BUSINESS.

When it's for A BUSINESS suddenly the money spent is more special.

We all spend money - but we don't all buy the laws to make sure our money spent on shoring up the BUSINESS of raising a good family is tax deductible.

(while also paying property taxes, sales taxes, utility taxes, gas taxes, etc.)

Such a f(#$*ing scam.

Yup. 

Did you hear that Bezos took the full child credit for his kids? Unbelievable.