2014 tax world

Bob Bancroft · Feb 7, 2014

Cold, cold, cold. Waiting for parts for shop project.
So I pay local property tax. Up about 9%. Doesn't take long for it to double at that rate!
Start in on income tax. Self employment tax was 13.3% last year. Now it's 15.3%.
I guess government is prospering?!

rrlund · Feb 7, 2014

I never knew self employment tax not to be 15.3.

I had a bigger problem though. I stopped to drop off everything at the tax lady's house Monday when I came home from the stockyard and she said she didn't want to do them this year. She made an error last year that cost me over $400 in penalties and said that was the big factor in it. She was only doing it for 5 of us anymore after selling her business several years ago and she wasn't keeping up on changes in the law.
So I had to find somebody new. Not as easy as you might think unless you want to go to one of those storefront seasonal places. Luckily I found somebody close to home who said she'd do it this year and see how it goes.

Bob Bancroft · Feb 7, 2014

That's tough. Similar thing happened to me years ago. Finding a small farmer friendly tax preparer here in central NY is next to impossible.
I also had 15.3% in my mind. But last years SCH SE shows 13.3%!
Maybe that was buying more votes, like the short lived SCH M "making work pay"!

fordfarming · Feb 7, 2014

Here in my county in Ohio they said land value was up so they reassesed and double our property tax

Tom in TN · Feb 7, 2014

Bob,

The Federal Government implemented a tax reduction for 2012 that was supposed to spur the economy. They reduced the employEE tax rate for Social Security from 6.2 percent to 4.2 percent for employed or self-employed individuals.

Consequently, you, as a self-employed individual, paid a total of 10.4 percent into Social Security instead of the 12.4 percent you normally pay. (4.2% employEE, plus 6.2% employER as a self-employed person).

You also paid 2.9 percent into the Medicare tax, resulting in a total tax of 13.3 percent instead of the 15.3 percent that you normally pay.

That 2 percent reduction was only for 2012 and went away on 1/1/13, so you are back to your normal Social Security / Medicare tax rates.

Tom in TN

Bob Bancroft · Feb 7, 2014

Believe it or not, here in the land of taxes, NY state sets a maximum assessed value for farm land. So the locals can do what they want, but at least taxable values are limited.

Bob Bancroft · Feb 7, 2014

I just looked back, and found 13.3% for 2011 also! (2010 was 15.3%)

DeltaRed · Feb 7, 2014

Here land values are "plumeting".So they raised land taxes.

rrlund · Feb 7, 2014

Same here in Michigan. It isn't just ag land. Taxable Value on all property is tied to the Consumer Price Index. Property taxes can only go up by the rate of inflation,not the increase in property value.
Only problem with it is that we have what's known as State Equalized Value too. That value is based on actual value of property based on actual sales. The longer you own a parcel,the better the value,so to speak. When a parcel sells,it comes "uncapped" and the sellers State Equalized Value becomes the new owners Taxable Value. In my case for example,I've owned most of this property since it was "capped" in 1994,so a lot of it has an SEV about 5 times what the Taxable Value is,so if I sold it,the new owners Taxable Value would be about 5 times what mine is and their taxes would be 5 times what mine are.

Fordfarmer · Feb 7, 2014

Here in WI, the first half of your property tax is due by Jan. 31, second half by July 31. My property tax was up something like 12% this year...an $1100-some increase. Over 1/2 of property taxes goes to the local school district (that's $4500+ for me)...and I got a letter the other day asking for a donation for the Music Boosters.
Income tax was easier to take...but only because I made so little profit last year, and my brother works for H&R Block, so I get a nice break on the cost of having them done.

Brent Zappe · Feb 7, 2014

Thank you for all the positive things you had to say about taxies for this year. I live in SO. Ca. and I know my taxies are always high. I should know I get paid once a month and they take out close to 1,200. in taxes each month.

Bob Bancroft · Feb 7, 2014

You can pay in installments here, with a hefty interest charge. But the school tax bill, another "property" based tax, will come out late summer also!

Anonymous-0 · Feb 7, 2014

I thought that was a relay smart move. As SS was seriously heading for bankruptcy and payrolls were falling they commpound the problem by decreaseing the contibution rate.

JMHO

Areo

Spook · Feb 7, 2014

That is one reason I'm in the same house I bought in 86. If I sold this place, and bought another in Michigan for about the same value, my taxes would triple. If I sell, I guess it should be to move to Florida!!

waltdavies · Feb 7, 2014

We have farm and Forrest deferrals here it cuts our property tax way down. Also unlike those with newer homes my old place is grandfathered in to the old system. I paided around $700 some of my neighbors are paying 4 times that because of the new home that is not on the FF referral program.
Sure has saved me a lot over the las 21 years.
Walt

rrlund · Feb 7, 2014

Same here. if I sell the place to the boy....or give it to him,I'd have to move out of state.

Spook · Feb 7, 2014

Maybe thats a good thing??

rrlund · Feb 7, 2014

I've thought so for years!

LAA · Feb 7, 2014

So in Michigabn the State assesses the property tax? Thats a local gig in Louisiana, the parish tax assessor levies and the Sheriff collects, both are elected so increases and reassessments are few and far between, at least in low population rural parishes.

Eldon (WA) · Feb 7, 2014

(quoted from post at 09:34:36 02/07/14) We have farm and Forrest deferrals here it cuts our property tax way down. Also unlike those with newer homes my old place is grandfathered in to the old system. I paided around $700 some of my neighbors are paying 4 times that because of the new home that is not on the FF referral program.
Sure has saved me a lot over the las 21 years.
Walt

We have that up here in WA too...but when they assess your house at $400k and the land at $75K it isn't worth the 5 years it takes to go into effect. Then if you sell and the new owner doesn't continue the exemption someone has to pay back all of the tax savings plus a 25% penalty. I just suck it up and pay...

Eldon (WA) · Feb 7, 2014

(quoted from post at 08:00:58 02/07/14) Here in my county in Ohio they said land value was up so they reassesed and double our property tax

Here they lower the assessed value and up the mil levy...they get their money one way or another....

rrlund · Feb 7, 2014

No,we have township assessors. Everything is based on state sales studies though. The state does a sales study of county sales every year and as backwards as it sounds,treasury tells local assessors how much value they have to "find" in the township.

GeneMO · Feb 7, 2014

Taxes takes right at 22-24% of mine. That is for Fed. State, FICA and Medicare tax.

By the time you figure property tax on houses, land, and vehicles, the vehicle licenses, sales tax on everything, and various other permits, fees, etc. then you loose right at half, 50%. Pisses me off when I think what I could do with that money, and then to see how they waste it, give it to those who do not deserve, and finally when our pres. and his wife live like royalty on their vacatons, parties, and clothes.

Makes me want to dress up like an indian and throw something off a ship in to the harbor.

Gene

rrlund · Feb 7, 2014

We'd be better off living in Sweden where you pay 50% and know it,but you actually get something in return for the money you pay.

Ted in NE-OH · Feb 7, 2014

In Ohio you can appeal your valuation of your property. I have 11 A that is valued at 53k but 3/4 is swamp and creek bed. Only one 2A building lot. I will get a friendly appraiser to appraise it based upon int condition and then appeal the evaluation. Never done that before so it will be interesting.

TomH in PA · Feb 7, 2014

Tax rate in Sweden is quite a bit higher than 50%, plus all that oil revenue helps their economy a lot. But they seem happy with it.

rrlund · Feb 7, 2014

Sweden doesn't produce any oil. Norway does.

Greg K · Feb 7, 2014

I don't mind paying taxes now that I have affordable health care, just stirring the pot. Here you can contest the property taxes, however I don't know if it has ever done any good. We took our taxes to the accountant on Monday well see what he ends up with.

Frank 41 · Feb 7, 2014

Tom, the 2% decrease last year was ONLY for employees and NOT for self employed. It was a stupid law with SS getting shorted even more.

Here in IL, RE taxes are 60-65% to schools. The way they figure teachers pensions, it is no wonder states are broke. They should be figured the same as SS. They can jack the last 3 years by 6% and figure off of that. Plus all of the new schools that are taj mahals with big gyms and fancy lounges.

Bret4207 · Feb 8, 2014

(quoted from post at 07:55:59 02/07/14) That's tough. Similar thing happened to me years ago. Finding a small farmer friendly tax preparer here in central NY is next to impossible.
I also had 15.3% in my mind. But last years SCH SE shows 13.3%!
Maybe that was buying more votes, like the short lived SCH M "making work pay"!

Bob, I have a CPA who does mine. She and her hubby own and operate a dairy, her brother is a dairyman, she's been on every board related to farming you can think of. Good girl. If you ever run into another problem, let me know and I can give you her address.

Bret4207 · Feb 8, 2014

(quoted from post at 08:13:32 02/07/14) Believe it or not, here in the land of taxes, NY state sets a maximum assessed value for farm land. So the locals can do what they want, but at least taxable values are limited.

Unfortunately your assessments are going up. NY has decided that the days of assessing farmland at reduced rates is over. Even you ag exemption will be rising. The State keeps throwing more and more burden on the Counties and they throw it on the Towns. That's part of the reason I ran for a Town Council spot. Land owners HAVE to get on the Boards to help fight the State, otherwise they'll keep raping us.

Bret4207 · Feb 8, 2014

(quoted from post at 13:15:48 02/07/14) We'd be better off living in Sweden where you pay 50% and know it,but you actually get something in return for the money you pay.

Swedens income tax runs between 30 and almost 60% plus a 31% payroll tax. So somewhere between 60 and 85-90% can be taken in taxes, plus a 25% VAT or sales tax if you will. Plus $1.06 per LITER excise tax on fuel, which is about $4.00 a gallon in tax alone.

Yeah, you get cradle to grave gov't goodies I suppose. Is it worth the trade off?

2014 tax world

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