Funny about Money

The only thing necessary for the triumph of evil is for good men to do nothing. ―Edmund Burke

Gray (Busy) Day at the Funny Farm

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Yipes!

Continuing overcast, still, and smoggy here in lovely uptown Phoenix, but this morning was more darkly overcast than usual. At 8 a.m., when the hounds finally pushed me out of the sack, I thought it was the usual reveille hour of 6:30 or 7:00. Oh, well.

Just finished polishing a short essay that came in from a new client, a senior scholar of Korean communication studies and an extremely interesting gentleman. I have no idea how he found me, but I sincerely hope to stay found.

So this is a bright spot on the horizon.

A thousand bucks is supposedly forthcoming from another client. Certainly hope it shows up soon, since the dollars are flying out the doors and windows here.

This afternoon I have to visit the dentist for what I am almost certain will be another root canal and another crown. Since I don’t have $1,000 or $1,200 bucks laying around in the “personal” funds, the S-corporation will have to pay me another thousand bucks of taxable “salary” to cover that little nightmare. I think I can front the money this month, though, and then pay myself in January, pushing that taxable event forward into 2018.

Whether this will be a good thing or not, I do not know, given the hash the crooks in Washington are making of the tax system. Probably not, since nothing the bastards are doing is what you could reasonably call “good” for the man or woman on Main Street. But WhatEVER: unless I go out and get a housecleaning job, I’ll have no other source of income until next September…for that matter, I rather doubt the required minimum drawdown I made last September will last that long, especially since, presumably, no tax refund will be forthcoming in 2018. Indeed, my federal taxes presumably will be significantly higher than they were this year, which will create a bit of a hardship.

On Facebook, we’re told that business expenses will no longer be deductible for independent contractors. EDIT: THIS IS WRONG! SEE THE COMMENT BELOW FROM MAREZYDOATS AND THE FACTCHECK AT SNOPES! dang…here i thought i was so smart…) However, the squib in question doesn’t say how that applies to small — we might say “microscopic” — businesses organized as S-corps. The Copyeditor’s Desk has been an S-corp ever since its lawyer, my XDH, realized that incorporating would avoid having editorial income reduce the piddling amount of Social Security I was forced to take early because of the Great Recession. It looks possible that, thanks to the Trumpeters’ astonishing greed, even my ultra-dinky little business will be advantaged under the rapacious new law. In other words, even though the law is designed to benefit the One Percenters, you don’t actually have to be a high earner to benefit if your business is organized as an S-corp. What’s sauce for the fattened gander is sauce for the scrawny little gosling….

Well. We shall soon see. Because CE Desk has no shareholders and does not issue dividends, the gouge on those distributions will never materialize. Payments to me as salary, of course, will be subject to withholding, but because I tend to lend the corporation funds either on purpose or by accident (for example, when I have to buy something from Costco & can’t put it on the corporate AMEX card, or when I accidentally charge business expenses on the personal AMEX card), some part of drawdown can be carried as repayment of loans. At least for the time being.

Postscript

Ah hah!!! See this revelation on the tax law and the self-employed:

https://www.snopes.com/tax-bill-small-business-deductions/

Many thanks to Marezydoats!

 

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Author: funny

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4 Comments

  1. Snopes has debunked the Facebook claim that small businesses will no longer be able to deduct expenses.

    https://www.snopes.com/tax-bill-small-business-deductions/

  2. GOOOOD catch!!!!!!!!! This is going right straight up at Facebook. Thank you!! <3

    A misunderstood provision of the 2017 tax overhaul legislation making its way through Congress has panicked small business owners and independent contractors who fear their deductions for business expenses are on the block.

  3. Who knows what this finished “income tax product” will look like? I’ve never seen anything like it in my life. The big winners…IMHO are corporations…who will basically get their taxes cut in half. Aaaand as memory serves the consensus among CEO’s is that they will take this “windfall” and either buy back shares or pass along the gains to stock holders in the form of dividends. Didn’t read where one CEO is planning on using this tax cut to hire new employees…buy new equipment….or increase employee benefit packages…SAD….
    IMHO this will come back to bite GOP. As it seems with less tax revenue there will be a need to cut services….like Medicare…which should make the Democrats platform the place to be….And the pendulum swings…

    • Yeah, I’m afraid this bill is SO unpopular that enough disgruntled voters will turn out to make a serious difference. If they manage to overcome the malignant gerrymandering that has taken place all over the country, 2018 could be a Waterloo for the Republicans.

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