Quote:
Originally Posted by woj
$200k on $900k income sounds about right, not everyone uses every borderline legal deduction or loophole they can...  |
I'm assuming he had a company with expenses. And at least one or two "real" employees (not contractors).
He only grossed 900K for the whole year.
You do the math and there is no way he paid that much in federal income tax with his corporation.
As I said earlier, he then had to pay State income tax, local tax, property tax, and of course sales tax for everything in life.
If you figure a gross of $900,000 a year (which is what he said). Just ONE employee at $40,000 a year. An office space costing $12,000 a year,. Electric bill of $6,000 a year. Expenditures and supplies of maybe $50,000 a year (I don't know what his business was, I spend a lot more than that a year).
Then he said he hired more people (contractors so he didn't have to pay matching funds)
So let's say he only hired 2 more "contractors" at $40,000 a year. (I'm being conservative)
That leaves him with a theoretical $720,000 overall. That would mean that if he just straight up paid "only" $200,000 he would have been paying corporate federal income tax of 36%. Any accountant in the world could get that down in a hurry.
BUT...he said that he paid over a hundred grand for two of the quarters of that year (whatever year it was...he didn't specify). So that means he also paid 2 other quarters with a little less.
So now he's maybe at 300 grand or more he claims to have paid in Federal Corporate tax.
Now he has to pay State income tax. And local tax. And property tax.
Doesn't sound right to me at all. Anybody else on here that makes real money think that story rings true?