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  1. #1
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    Do MLMer's Understand Taxes?

    http://expeditionoftruths.com/2010/0...t-of-business/

    This came from an Amway IBO:

    Question:

    Just to clarify, did you say the Canadian government gave you a cheque for all your business expenses or did you just get to deduct your business expenses from your taxable income? I’m from the US so I’m not familar with how the Candian tax system works. Thanks!
    Answer:

    They didn’t give me a cheque specifically for my business related materials. I get to deduct my business related expenses against my taxable income like you said. I did our regular job taxes first and after that I wasn’t really getting a refund. However after I started to add in all our business related expenses that’s where our refund came which pretty much covered our business expenses for the 7 months we were in business last year
    How do you get a refund on your business expenses if you actually made a profit? Profit = income after business expenses are deducted.
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  2. #2

    Re: Do MLMer's Understand Taxes?

    Quote Originally Posted by Joecool44 View Post
    http://expeditionoftruths.com/2010/0...t-of-business/

    This came from an Amway IBO:

    Question:



    Answer:



    How do you get a refund on your business expenses if you actually made a profit? Profit = income after business expenses are deducted.
    I don't think he mentioned profit. Obviously he had excess withholding from his regular job and offset it with his expenses from his business which lowered his net income.

  3. #3
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    Re: Do MLMer's Understand Taxes?

    Quote Originally Posted by noagenda View Post
    I don't think he mentioned profit. Obviously he had excess withholding from his regular job and offset it with his expenses from his business which lowered his net income.
    He did his taxes for his job income and was not really getting a refund. After he factored in business expenses, he is now getting a refund. I read that to mean he lost money. If he made money in Amway, his income would have offset his expenses and he would have had to pay more taxes, unless he had a net loss which would result in a tax return.
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  4. #4
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    Re: Do MLMer's Understand Taxes?

    More interesting teaching:

    Why not rent until you either can pay for your house in cash (laugh all you want) or at least pay for more then half of it? You are right about getting a low mortgage rate, but what happens, especially in the US and also in Canada is that people got houses that they could never afford at a low interest rate, then what happens? The interest rates go up even .5 % and now when they have to re-mortgage they have to sell their place because they cannot even afford the payment. You also cannot write off your interest unless you own your own business, at least here in Canada and Iím pretty sure thatís the same for the US. If you have a regular 8-5 job there are no tax write offs for your interest.

    While I agree that a home is probably one of the better ďgood debtsĒ to have, itís still debt and people justifying it by saying itís a ďgood debtĒ is rediculous. Iím sorry but I plan to live debt free for the next 3-5 years and would rather pay someone rent instead of paying the bank all that interest. We can save a lot more money then our house will ever appriciate and or us paying down our mortgage. For the first 10-15 years all your payment does is go towards interest. So why not rent for the next 3-5 years, save a bucket load of money and then either put that huge chunk down on a house or just pay for it in cash? Even if that takes you 8 years to save you still beat the system and donít pay the bank all that interest.

    Not saying your thinking is wrong, everyone has their own opinion and this is mine.
    Originally Posted by nomaxim
    Sorry there ''ohein56', but it appears that 'Joecool44' does not have the position that you envision on this topic.

    'Joecool44' has, as a matter of routine, refuted most of your accusations
    Quote Originally Posted by Jax74 View Post
    Some people have the ability to think critically, some do not. ohein obviously doesn't.

  5. #5
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    Re: Do MLMer's Understand Taxes?

    Quote Originally Posted by Joecool44 View Post
    He did his taxes for his job income and was not really getting a refund. After he factored in business expenses, he is now getting a refund. I read that to mean he lost money. If he made money in Amway, his income would have offset his expenses and he would have had to pay more taxes, unless he had a net loss which would result in a tax return.
    Clearly Jokefool doesn't understand taxes.

    It's becoming increasing clear that the anonymous comment claiming you were an auditor is bunk.

    New to scam.com? This is what you can expect from MLM critics in support of their claims ....


    Why the f-u-c-k do you need evidence all the time? - Zapticon
    You know that I don't provide proof of my claims - Once Upon A Time
    I have the information but I'm not posting it - Joecool


  6. #6
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    Re: Do MLMer's Understand Taxes?

    Quote Originally Posted by Joecool44 View Post
    More interesting teaching:


    What's wrong with that?

    Its what I did. I closed on an almost 3,000 sqft, 4 bd, 2.5 ba house with two car detached garage in early June - paid for in cash.


    Learned my lesson the hard way several years back when I lost my 1st home purchase to foreclosure. From that point forward, once my finances/debts were all paid off, I've stuck to a strict cash only arrangement. If I don't have it in the bank, I don't buy.

    Trust me. Its a hell of a lot cheaper and quicker to buy with cash than over time with interest.

  7. #7
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    Re: Do MLMer's Understand Taxes?

    Quote Originally Posted by IBOFightBack View Post
    Clearly Joecool doesn't understand taxes.

    It's becoming increasing clear that the anonymous comment claiming you were an auditor is bunk.


    Hell, I wouldn't trust any of you to do my taxes......well, maybe Yawn.

  8. #8
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    Re: Do MLMer's Understand Taxes?

    Quote Originally Posted by Joecool44 View Post
    More interesting teaching:
    OMG, whoever wrote that is a moron

  9. #9
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    Re: Do MLMer's Understand Taxes?

    Quote Originally Posted by IBOFightBack View Post
    Clearly Jokefool doesn't understand taxes.

    It's becoming increasing clear that the anonymous comment claiming you were an auditor is bunk.

    It appears you don't understand how taxes works. This is really pretty simple math.

    The guy has a job and did his taxes and was not getting a refund. He didn't say if he had to pay more or not but lets assume no. Looks like his withholding was spot on. Now factor in his MLM "business". Not sure how it is in Canada but in US a sole proprietor or LLC member does a schedule C. The profit or loss from that schedule goes on main tax form 1040. One number that is either positive (made money) or negative (lost money). So if it reduced his tax bill, he lost money. Pure logic and math.

    Any questions?

  10. #10
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    Re: Do MLMer's Understand Taxes?

    Quote Originally Posted by noagenda View Post
    I don't think he mentioned profit. Obviously he had excess withholding from his regular job and offset it with his expenses from his business which lowered his net income.
    Not true. If he had excess withholding he would have gotten a refund. That's what a refund is. It's like an escrow account. You pay in all year and if your tax bill exceeds what is in your account you send a check. If your tax bill is less then you get a refund. Simple.

  11. #11
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    Re: Do MLMer's Understand Taxes?

    Quote Originally Posted by bibleman View Post
    What's wrong with that?

    Its what I did. I closed on an almost 3,000 sqft, 4 bd, 2.5 ba house with two car detached garage in early June - paid for in cash.


    Learned my lesson the hard way several years back when I lost my 1st home purchase to foreclosure. From that point forward, once my finances/debts were all paid off, I've stuck to a strict cash only arrangement. If I don't have it in the bank, I don't buy.

    Trust me. Its a hell of a lot cheaper and quicker to buy with cash than over time with interest.
    WOW. That's freaking amazing. Not many people pay cash for homes. How much of that do you credit to MLM income?

  12. #12
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    Re: Do MLMer's Understand Taxes?

    I did our regular job taxes first and after that I wasnít really getting a refund. However after I started to add in all our business related expenses thatís where our refund came which pretty much covered our business expenses for the 7 months we were in business last year
    You missed another important part....

    When your write off business expenses, you don't pay taxes on that expense.

    Lets say your in the 35% tax bracket.
    If you write off $100 in business expenses, you then pay $35 less in federal taxes.

    There is no possible way without illegal tax fraud, that the refund from adding in business expenses would cover the buisness expenses themselves.

  13. #13
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    Re: Do MLMer's Understand Taxes?

    Quote Originally Posted by bibleman View Post
    What's wrong with that?

    Learned my lesson the hard way several years back when I lost my 1st home purchase to foreclosure. From that point forward, once my finances/debts were all paid off, I've stuck to a strict cash only arrangement. If I don't have it in the bank, I don't buy.

    I disagree with the original advice though. Renting vs a mortgage is almost always worse if certain conditions apply. Like you are stable in the area. Like very likely to stay put and not have to move away. His advice looked like it was for variable rate mortgages. If you have a fixed rate you don't have to worry about interest rates and it is almost always cheaper to buy vs rent on a monthly basis.

    In the nineties, i got divorced and rented for a while. When rates fell I bought a small house, just me and 2 cats. I lived there for 6 years. I sold the house and the profit i made paid for every penny i put into the house including down payment, interest, principle, insurance, taxes, and 3 remodels. I literally lived in that house for free for 6 years. Of course that's not assured but my monthly payment was 300 a month less that I was paying for a townhouse apartment. That money was flushed away every month. And i rolled the profit into another house so I had no tax liability.

  14. #14

    Re: Do MLMer's Understand Taxes?

    Quote Originally Posted by tomInAustin View Post
    Not true. If he had excess withholding he would have gotten a refund. That's what a refund is. It's like an escrow account. You pay in all year and if your tax bill exceeds what is in your account you send a check. If your tax bill is less then you get a refund. Simple.
    I'll clarify what I meant. His withholdings are from his regular employment. He did not have enough withholdings to warrant a refund. However once he applied his expenses from his business his NET income was such that he was entitled to a refund. His withholdings were excess ONCE those expenses were applied. I understand its his own money he is getting back and not a bonus for expenses.

  15. #15
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    Re: Do MLMer's Understand Taxes?

    Quote Originally Posted by noagenda View Post
    I'll clarify what I meant. His withholdings are from his regular employment. He did not have enough withholdings to warrant a refund. However once he applied his expenses from his business his NET income was such that he was entitled to a refund. His withholdings were excess ONCE those expenses were applied. I understand its his own money he is getting back and not a bonus for expenses.
    What you say is true is if he lost money on the MLM. Net profit or loss is what affects net income and then taxes. So we are saying the same thing.

  16. #16

    Re: Do MLMer's Understand Taxes?

    Quote Originally Posted by tomInAustin View Post
    What you say is true is if he lost money on the MLM. Net profit or loss is what affects net income and then taxes. So we are saying the same thing.
    That is what I am saying. I think that is one of the points MLMrs try to make is that a part time business like MLM can help leverage your tax burden if you can apply all LEGITIMATE business expenses from it. Yes it will show a loss or limited profit but isn't that what all businesses try to do when filing taxes ? If you like to go to dinner, travel and entertain and integrate your lifestyle into the business then some of those expenses would occur whether you had a business to apply them to or not.

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