Blog/The Hunt for Taxes
Posted Dec 31, 2015 by Martin Armstrong
The hunt for money is absolutely destroying everything. The IRS has placed a maximum on the depreciation of assets. Any high-end cars over $40,000 must be paid for with after tax dollars. This will have some impact on the high-end markets. States are already sharing revenue and info. As of January 2014, if you buy a car and have roots in New Jersey and Pennsylvania, you have to pay the higher sales tax; then the dealer has carves it up and New Jersey gets its 7% and 1% goes to Pennsylvania.
States, such as New Jersey, already impose a second surcharge sales tax on any amount over $45,000. They call this the rich man’s tax. You pay the gross sales tax on the full price of the car and then a surcharge on any excess over $45,000.
Now on top of this, the IRS has imposed a $25 limit for ALL business gifts you give directly or indirectly to each person during your tax year. A gift to a company that is intended for the eventual personal use or benefit of a particular person or a limited class of people will be considered an indirect gift to that particular person or to the individuals within that class of people who receive the gift. You cannot even buy an employee dinner.
“Bob Jones sells products to Local Company. He and his wife, Jan, gave Local Company three gourmet gift baskets to thank them for their business. They paid $80 for each gift basket, or $240 total. Three of Local Company’s executives took the gift baskets home for their families’ use. Bob and Jan have no independent business relationship with any of the executives’ other family members. They can deduct a total of $75 ($25 limit × 3) for the gift baskets.”