The usual energy price cycle - prices up, then all the 'obscene profits' get eaten up over the next few years through cost increases, currency fluctuations, and (we'll see) a price drop following massive investments.
"if you go to india, you see entire families being transported via scooter or motorcycle. ... amazingly, even with the dogs, carts, cows, bicycles, scooters, motorcycles, taxis (3-wheelers and conventional cars), buses, lack of traffic enforcement, dirt roads... most people seem to make it to their destination on a regular basis."
I tried riding a scooter to work... till I got hit by a car while stopped at a red light. It's kind of a catch 22: in America you need a car to protect you from cars.
if you go to india, you see entire families being transported via scooter or motorcycle. in many cases no helmets. women in traditional dress... not protected in a fall. sandals, perhaps no sandals.
amazingly, even with the dogs, carts, cows, bicycles, scooters, motorcycles, taxis (3-wheelers and conventional cars), buses, lack of traffic enforcement, dirt roads... most people seem to make it to their destination on a regular basis
Heck I'm living in the Philippines right now and will be for another year. I see more bizzare stuff in a week than you will see in the US in 5 years! They use a motorcycle with a boxy sidecar attached as transportation here really really unsafe at any speed and bald tires, no brakes etc... I know I've used them often enough and they also have a similar setup with a semi half cage around a floor attached to a motorcycle and they will carry 3-4 large pigs in it. Oh and I've seen them tip over a lot too. Oh and the best thing is the motorcycles are all 150cc bikes!!!!
How much does your gas mileage increase when pulling a lighter travel trailer, assuming the same pull vehicle and same conditions eg.3000lb trailer as opposed to a 6000 lb. trailer?
I've traveled recently to Central America (Honduras) and India and of course, their concept of transportation is way different from that of the U.S. And in Honduras, their "fleet" often consists of old cars and trucks from the U.S. that have somehow made their way down there. In fact, it's interesting to see old U.S. school buses (sometimes with the school district's name still on them) being used as public busses. And 10 people riding in the back of a small pickup truck (no seat belts of course) is pretty common. And yes, loads of old small Japanese/Korean cars and trucks and motorbikes, pollution controls are a low priority, so many are smoking away. But even for these countries, the increase in the cost of petroleum hits them hard- remember that 70% of India exists on income of less than $2/day.
1991 K2500, 350, 4sp auto 25 mi mixed driving, no trailer, 14mpg. In town, 12. Long trip 18. With camper,7-9 mpg.
2004 K3500 crew cab dually, 402 Duramax, 5 sp Allison no trailer 12.8 in town. 25 mi. mixed, 16.5. Never taken a long trip w/o camper. With camper, 12.5-13mpg!!!
gary says, "Face it you along with the rest of the buying public want bigger cars. Your current Camry is bigger than our LS400 Lexus."
The reason my TCH is larger than your 1990 LS400 is that cars, as a SAFETY TREND, have gotten larger and safer. Not as a "people just want bigger cars" trend.
People seemed to prefer the "largest, safest car" they could afford back during the SUV boom of the late 90's and early 00's.
But now, the trend is "smaller, still safe cars which still have plenty of interior room" based on recent sales numbers.
Sure, there will always be the 7 and 8 person families who need large SUVs, and there will always be single guys or couples who need to tow a boat, and there will always be required large diesel work trucks.
But the era of 20-25% of the single people in the USA driving an SUV, that is on it's way out.
The era of people driving WAY TOO HUGE a vehicle for their personal needs just so they can keep up with the Joneses is on it's way out.
And that's all good. It was such a waste of money, and fuel, and such a stupid reason to pollute.
I was sitting in an outdoor cafe and this guy comes out with a rolled up architect's blueprint under his arm. He goes to the back of a Range Rover, opens the tailgate, and throws the blueprint roll in the back, slams the hatch, and then...dusts off his hands. He then enters the otherwise empty vehicle, alone, and roars off at a really fast clip to deliver his "load".
Oh, did I mention that he was parked across the white lines, taking up two parking spaces?
Yeah, yeah, maybe it was the only vehicle he had, etc. etc.---but the point is, this is the sometimes ridiculous nature of a "lifestyle" that isn't thinking straight anymore. It's a BIG architect firm (judging by the sign on the door)...they can certainly think of other ways to do this.
It's a BIG architect firm (judging by the sign on the door)...they can certainly think of other ways to do this.
Well maybe this firm was taking advantage of the generous depreciation rules that Congress enacted for 6,000 lb vehicles. I have a friend who's a dentist that recently purchased one of these behemoths for that very reason. Now what does a dentist need with a 6,000 SUV? He would be the first to admit that he absolutely did not need it but the tax code made it too attractive to pass up. With our government's brilliant energy policies it's a wonder we have any gas at all.
You missed the 'quotes' - I agree 100% with you, I work in the industry. Sorry for being too subtle. My point was that short term spikes often generate long-term misdirected actions, in place long after the profits have been eaten up by costs/price changes/etc.
I don't see investing in Exxon as "obscene" but some profits can be "obscene"....if you sold bread to starving children for $45 a slice, one could argue that this is morally questionable and more than "supply and demand".
But gouging on gas prices? It's about what you'd expect from a large corporation that is in for the short-term. Capitalism is historically (but doesn't HAVE to be) rapacious and pathological. Some businesses are waking up to longterm thinking and I feel personally have taken hold of higher principles of what constitutes fair and good business practices.
Oh, did I mention that he was parked across the white lines, taking up two parking spaces?
That's so that everybody around knows that this architect is "important".
Yeah, yeah, maybe it was the only vehicle he had, etc. etc.---but the point is, this is the sometimes ridiculous nature of a "lifestyle" that isn't thinking straight anymore. It's a BIG architect firm (judging by the sign on the door)...they can certainly think of other ways to do this.
Well, if it was a BIG sign, maybe it wouldn't fit on a smaller vehicle, so that justfies the use of the SUV right there. Ummm...yeah, that's the ticket. :P
if you sold bread to starving children for $45 a slice, one could argue that this is morally questionable and more than "supply and demand".
Well it might be morally questionable but if someone else is willing to pay $45 for that slice of bread then it isn't more than supply and demand.
But gouging on gas prices? It's about what you'd expect from a large corporation that is in for the short-term.
Where's the gouging? When oil was selling at $10/barrel and gas was below $1/gallon I doubt anyone was feeling to sorry for the oil companies. If it was suggested that something be done to prop up the price the public would have been outraged, saying that the market should determine the price. Well that pendulum swings both ways.
The government might be able to force the oil companies to sell for less. It's been done and the outcome is less oil. In your bread example the price of a slice would be less than $45 but there would be less bread to feed people. Is that morally acceptable? Or maybe you could not only force the oil companies to lower their prices but maximize their production. This would have to be accomplished by threat. So you have two systems. Encourage productivity through incentives or through threat of reprisal. Probably the fundamental difference between a capitalist and socialist societies.
Speaking of parking across spaces, I saw the oddest thing on Sunday. Someone had parked a Mazda Protege across a handicapped spot. The odd thing was he indeed had the handicapped cars that entitled him to the spot and even parked sideways he still stayed within the spot.
2015 Mazda 6 Grand Touring, 2014 Mazda 3 Sport Hatchback, 1999 Mazda Miata 2004 Toyota Camry LE, 1999.
And what if he had a Chrysler 300 SRT-8, and he threw the drawing in the trunk. What's the difference? Or one of those Mercedes (or AMG) with the V-8 or V-12? They're about the same real-world mpg.
Well he probably wouldn't be going to any unprepared construction or job sites in the cars but a Range Rover won't have any problem with it.
The handful of architects and construction people I have sold Range Rovers to have them for a couple of reasons...
1. The tax depreciation is TOO good to pass up 2. They won't have any problem driving through unprepared roads, muddy job sites or remote locations 3. While other smaller vehicles could drive to the same places they don't have the class the Range Rover has
It is stil a bit of overkill though and they even admit that.
The tax deduction on a big SUV far surpasses the added cost of gas. They are great for Real Estate sales people also. If you take people to show property in a Yaris you will probably lose the customers when their legs turn numb and it puts their back out. Success is much in the eye of the beholder. Would you list your home with someone driving a 15 year old Corolla or a Range Rover? Besides gas at $4 or $40 is just another write-off for business vehicles.
Now what does a dentist need with a 6,000 SUV? He would be the first to admit that he absolutely did not need it but the tax code made it too attractive to pass up. With our government's brilliant energy policies it's a wonder we have any gas at all.
I like your friend and his honesty. This is one reason why I dont like the convoluted tax laws. Just set up the brackets, and tell people they have to pay so many % of income as taxes. No itemized or standard deductions, no special rules for any special interests. Maybe that will put a lot of people out of business, but I think thats how the big brother tries force people on how they should spend/borrow their money.
If I buy a $700k house, the mortgage interest is tax deductible. If I buy a $70k car, the finance/interest charges are not. Personally, I don't see the justification. I think the auto makers should protest. Nobody "needs" to live in a big, palacial 11,000sqft mansion and get a tax break for it, either.
Why should a childless couple pay more taxes than the family that pops a baby every year, in these days of overpopulated world? Don't get me wrong, I like children. I just don't want their parents to get more standard deduction.
This is what we'll do when gas prices go up. Quit driving and whine on Edmunds. Now that I've talked about taxes, I hope this doesn't open up a big fat can of worms.
I believe that tax loophole would apply to ANYTHING that has a GVWR of 6,000 pounds or more. Not just trucks and SUVs.
Only problem is, nobody will build a car with a 6000 pound GVWR because of CAFE purposes, nevermind the fact that it would most likely get much better mpg than a 6000 pound GVWR SUV/truck.
I'd imagine that the last car with a GVWR of 6000 pounds or more would be a '79 Continental or Mark V.
Would you list your home with someone driving a 15 year old Corolla or a Range Rover?
That's a "don't care" issue. When looking for agents in the past, I looked at their track record. If they are very successful and driving a pickup, that's fine with me. Knowing it is probably wasteful in terms of gasoline, I have never driven with an agent to a property for sale. I arrange to meet them there. When selling properties in past, never saw an agent bringing people to look. They always arrived in separate cars. Maybe things are/will change in this matter if gasoline stays high or goes up.
The architect probably makes enough money to drive whatever he wants and put as much gas in it as he wants, as does the dentist and many other Americans. In fact, if I could afford it I'd buy one of those Porsche SUVs. That way even if I got stuck I could brag that I got to the mud first!
Taxes - I agree with blufz1 on that one. Sales tax is one of the only fair taxes.
When I was in college (a long while ago!) I was an economics major and they were always teaching about "price elasticity"- briefly, that if something goes up in price, demand will drop, and vice versa. Hmm, seems these days that either fuel prices are quite inelastic- that even if the prices have risen, hasn't affected demand very much. Or is there a delayed reaction? Or is the theory wrong? Or haven't prices risen high enough to reduce demand?
Of course, they also taught us that high government deficits and low unemployment will cause high inflation. And over the past 10 years, that theory hasn't been valid either. They say it's because productivity has increased also (because of the internet partially). They always have an excuse to justify any theory.
There are degrees of elasticity. I think the demand for fuel has gone down over the last couple months but maybe only a couple percent over what it would have been had fuel been cheaper. The reason is that in the short term we can only reduce our discretionary driving. It takes a little longer to make lifestyle changes that more significantly reduces our fuel consumption. Things like moving closer to work or buying a more efficient vehicle aren't going to be decisions that someone rushes into based on a couple months of high gas prices.
There was an unexpected increase in the nation's gasoline inventories reported today. That could be partially due to people driving less.
Take it with me is not my intent as my goal is to die without being a financial burden on anyone. My offspring don't need it and so far only the S.A. seems worthy to be the recepient of my leavins. :P
Or haven't prices risen high enough to reduce demand?
Evidently not yet. Number of speeding tickets have risen. You are impeding traffic on the freeway if you limit yourself to the speed limit. People haven't stopped buying lattes, smokes, booze, athletic event tickets, big screen TV's, cell phones, & other toys i.e. power boats. Almost forgot - Vacation homes for family pleasures.
In CA we meet the agent at the home. In Hawaii we always go to our realtors office and go looking from there. I always use our rental car because I hate being scrunched into his RAV4. We have used the same guy for 5 years in Hawaii and usually take him to lunch during our tour of properties. So it is different for different situations. I do base my selection of realtors on track record not vehicles. In Hawaii Big Island realtors tend to buy small SUVs. Though gas this last trip was cheaper than CA.
When you're buying, you want the agent driving the 4 banger Neon - you want the seller to think you aren't in any hurry.
When you're selling, you get the agent with the Touareg who's aggressive as all get out. :shades:
Ok, got the car IM'd today (passed, thank you). Then I spent $8 on some gas - for the lawn mower. I remember when I could cut the grass all summer for a couple of bucks. Since I don't have any grass anyway, I could get out there with my slingblade and whack at the weeds, but it's more fun to borrow the neighbor's old riding mower and mow 'em down.
In the news, OPEC is threatening to cut oil and gas production to counter the proliferation of ethanol and other alternative fuels.
The problem with college classes and books on economic theories is that they utterly fail in the real world. It looks good on paper and some professor got a nice royalty for regurgitating old adages, but it's useless.
Why? They never take into account two major factors: 1:Greed. 2:Monopolistic behavior.
It looks good, but a good example would be gasoline. They know they have a captive audience, much like a drug supplier, so they feel no reason to give us a break. They could charge $10 a gallon and parts of our economy would still require fuel to move things around - let alone people who have to go places where using a car isn't optional.
Hmm, seems these days that either fuel prices are quite inelastic- that even if the prices have risen, hasn't affected demand very much. Or is there a delayed reaction? Or is the theory wrong? Or haven't prices risen high enough to reduce demand?
Energy is very inelastic as it takes a big change in price to reduce consumption. I mean people have to drive to work. But I do believe that consumption of gas is down slightly over the past few months (maybe not over the last year but the last 4-6 months). And yes part of the reaction will be delayed as people don't switch out cars every week. The person wanting to reduce gas consumption by getting a more fuel efficient vehicle may wait a few years when it comes time to get a new car.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
Maybe he has a mobile dental lab. Or hauls lots of dentures. I have never heard of anyone getting audited on legitimate deductions. I know small business people that hire their kids and give them big SUVs to drive. All business expenses. It is part of the payola to Detroit and the Big 3. Washington DC has NO interest in saving gas. It is only lip service to quiet the fringe element. Watch this latest CAFE bill go down in flames, so loaded with PORK that it has no business getting passed.
As far as I know there is no stipulation in the tax code that says you have to justify the need for this type of vehicle. It simply states that small business owners can depreciate them at an accelerated rate.
From what was posted I would presume it would be to small for that. If that was claimed the auditor would ask for proof, usually you would also be deducting the modifications for that.
Or hauls lots of dentures.
You can haul a lot of dentures in a Civic. That is unless King Kong is a patient.
I have never heard of anyone getting audited on legitimate deductions.
People get audited all the time, either because something is done that sends up a red flag or its randomly selected for an audit. In a case like this the auditor, if he or she is smart and experienced, would know what a typical dental practice has for deductions. A large SUV is not one of them as most dental practices have no need for them, so they will deny the deduction until the taxpayer can satisfy the auditor that it is a legitiment business expense.
I know small business people that hire their kids and give them big SUVs to drive.
So do I they give them big cars and big salaries and when I was in that aspect of accounting we told them not to. We one time had a client that started a fast food place hired his wife to work there (flipping burgers and such) and their two kids. He paid the wife $25 an hour and the kids $20 (industry average for this line of work was $7-8/hour at the time). He wrote it off as a business expense against our advice. When he was audited the IRS said no way. They took the difference of what he paid his family and what the industry standard is and denied it as a business expense. They did this going back the four years he was in business.
In short the difference was considered a dividend payment to the family and was taxable as business income. He ended up owing a few hundred thousand in back taxes, penalties and interest.
Do most people get caught? no, but many do.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
No such thing. No matter how you do it someone somewhere will get the short end of the stick.
You're probably right. Maybe they shouldn't refer to it as Fair Tax but instead call it Fairer Tax. It would be difficult not to improve on the convuluted, nonsensical system that we currently have.
Hypothetically. Let's say you have a society where everyone makes $100k per year. These people pay anywhere from $0 in taxes to $40k in taxes. You replace this system with one where everyone now pays $20k in taxes. Would you say that the people who had been paying $0 are getting the short end of the stick? My point is that a lot of the objections to changes in the tax code are from special interests that don't want to give up their preferential treatment. It has little to do with fair or unfair.
You probably do need to justify the need for a vehicle. I don't think you need to justify it's size. I'm fairly certain that anyone who owns a small business that's not located at his residence can claim mileage to and from his business. That being the case it is probably a no-brainer to justify a company vehicle.
You seem to be pretty knowledgeable about the tax code. How about providing a link that states only those who can demonstrate a need for this size vehicle can take advantage of the tax break. I've done a web search and can't find any requirement. So regardless of whether or not a Civic would have sufficed for this businessman's needs, it just doesn't matter.
Because our good friends in California have nigh declared diesel to be the harbinger of DOOM for the world.
What with their consistent attempts to change their pollution standards to outpace diesel technology and thus render diesel cars verboten in the fine, gasoline-loving-but-fuel-economy-hating state of California.
Comments
Gas here is about 15 cents or so less than it was a week or two ago.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
I tried riding a scooter to work... till I got hit by a car while stopped at a red light. It's kind of a catch 22: in America you need a car to protect you from cars.
amazingly, even with the dogs, carts, cows, bicycles, scooters, motorcycles, taxis (3-wheelers and conventional cars), buses, lack of traffic enforcement, dirt roads... most people seem to make it to their destination on a regular basis
Heck I'm living in the Philippines right now and will be for another year. I see more bizzare stuff in a week than you will see in the US in 5 years!
They use a motorcycle with a boxy sidecar attached as transportation here really really unsafe at any speed and bald tires, no brakes etc...
I know I've used them often enough and they also have a similar setup with a semi half cage around a floor attached to a motorcycle and they will carry 3-4 large pigs in it. Oh and I've seen them tip over a lot too. Oh and the best thing is the motorcycles are all 150cc bikes!!!!
My experience towing a 6800 lb 5th wheel:
1991 K2500, 350, 4sp auto 25 mi mixed driving, no trailer, 14mpg. In town, 12. Long trip 18. With camper,7-9 mpg.
2004 K3500 crew cab dually, 402 Duramax, 5 sp Allison no trailer 12.8 in town. 25 mi. mixed, 16.5. Never taken a long trip w/o camper. With camper, 12.5-13mpg!!!
The reason my TCH is larger than your 1990 LS400 is that cars, as a SAFETY TREND, have gotten larger and safer. Not as a "people just want bigger cars" trend.
People seemed to prefer the "largest, safest car" they could afford back during the SUV boom of the late 90's and early 00's.
But now, the trend is "smaller, still safe cars which still have plenty of interior room" based on recent sales numbers.
Sure, there will always be the 7 and 8 person families who need large SUVs, and there will always be single guys or couples who need to tow a boat, and there will always be required large diesel work trucks.
But the era of 20-25% of the single people in the USA driving an SUV, that is on it's way out.
The era of people driving WAY TOO HUGE a vehicle for their personal needs just so they can keep up with the Joneses is on it's way out.
And that's all good. It was such a waste of money, and fuel, and such a stupid reason to pollute.
I was sitting in an outdoor cafe and this guy comes out with a rolled up architect's blueprint under his arm. He goes to the back of a Range Rover, opens the tailgate, and throws the blueprint roll in the back, slams the hatch, and then...dusts off his hands. He then enters the otherwise empty vehicle, alone, and roars off at a really fast clip to deliver his "load".
Oh, did I mention that he was parked across the white lines, taking up two parking spaces?
Yeah, yeah, maybe it was the only vehicle he had, etc. etc.---but the point is, this is the sometimes ridiculous nature of a "lifestyle" that isn't thinking straight anymore. It's a BIG architect firm (judging by the sign on the door)...they can certainly think of other ways to do this.
MrShiftright
Visiting Host
So, you can stop your attempts at making us feel guilty for having made a smart investment or two a long time ago in the petrol/energy industry.
We are doing very well and apologize to no one.
Well maybe this firm was taking advantage of the generous depreciation rules that Congress enacted for 6,000 lb vehicles. I have a friend who's a dentist that recently purchased one of these behemoths for that very reason. Now what does a dentist need with a 6,000 SUV? He would be the first to admit that he absolutely did not need it but the tax code made it too attractive to pass up. With our government's brilliant energy policies it's a wonder we have any gas at all.
But gouging on gas prices? It's about what you'd expect from a large corporation that is in for the short-term. Capitalism is historically (but doesn't HAVE to be) rapacious and pathological. Some businesses are waking up to longterm thinking and I feel personally have taken hold of higher principles of what constitutes fair and good business practices.
mrShiftright
Visiting Host
That's so that everybody around knows that this architect is "important".
Yeah, yeah, maybe it was the only vehicle he had, etc. etc.---but the point is, this is the sometimes ridiculous nature of a "lifestyle" that isn't thinking straight anymore. It's a BIG architect firm (judging by the sign on the door)...they can certainly think of other ways to do this.
Well, if it was a BIG sign, maybe it wouldn't fit on a smaller vehicle, so that justfies the use of the SUV right there. Ummm...yeah, that's the ticket. :P
Well it might be morally questionable but if someone else is willing to pay $45 for that slice of bread then it isn't more than supply and demand.
But gouging on gas prices? It's about what you'd expect from a large corporation that is in for the short-term.
Where's the gouging? When oil was selling at $10/barrel and gas was below $1/gallon I doubt anyone was feeling to sorry for the oil companies. If it was suggested that something be done to prop up the price the public would have been outraged, saying that the market should determine the price. Well that pendulum swings both ways.
The government might be able to force the oil companies to sell for less. It's been done and the outcome is less oil. In your bread example the price of a slice would be less than $45 but there would be less bread to feed people. Is that morally acceptable? Or maybe you could not only force the oil companies to lower their prices but maximize their production. This would have to be accomplished by threat. So you have two systems. Encourage productivity through incentives or through threat of reprisal. Probably the fundamental difference between a capitalist and socialist societies.
i would argue, companies are joining the flow of others maximizing profits and investor returns in the short-term at the expense of their employees.
The handful of architects and construction people I have sold Range Rovers to have them for a couple of reasons...
1. The tax depreciation is TOO good to pass up
2. They won't have any problem driving through unprepared roads, muddy job sites or remote locations
3. While other smaller vehicles could drive to the same places they don't have the class the Range Rover has
It is stil a bit of overkill though and they even admit that.
I like your friend and his honesty. This is one reason why I dont like the convoluted tax laws. Just set up the brackets, and tell people they have to pay so many % of income as taxes. No itemized or standard deductions, no special rules for any special interests. Maybe that will put a lot of people out of business, but I think thats how the big brother tries force people on how they should spend/borrow their money.
If I buy a $700k house, the mortgage interest is tax deductible. If I buy a $70k car, the finance/interest charges are not. Personally, I don't see the justification. I think the auto makers should protest. Nobody "needs" to live in a big, palacial 11,000sqft mansion and get a tax break for it, either.
Why should a childless couple pay more taxes than the family that pops a baby every year, in these days of overpopulated world? Don't get me wrong, I like children. I just don't want their parents to get more standard deduction.
This is what we'll do when gas prices go up. Quit driving and whine on Edmunds. Now that I've talked about taxes, I hope this doesn't open up a big fat can of worms.
Only problem is, nobody will build a car with a 6000 pound GVWR because of CAFE purposes, nevermind the fact that it would most likely get much better mpg than a 6000 pound GVWR SUV/truck.
I'd imagine that the last car with a GVWR of 6000 pounds or more would be a '79 Continental or Mark V.
That's a "don't care" issue. When looking for agents in the past, I looked at their track record. If they are very successful and driving a pickup, that's fine with me. Knowing it is probably wasteful in terms of gasoline, I have never driven with an agent to a property for sale. I arrange to meet them there. When selling properties in past, never saw an agent bringing people to look. They always arrived in separate cars. Maybe things are/will change in this matter if gasoline stays high or goes up.
Taxes - I agree with blufz1 on that one. Sales tax is one of the only fair taxes.
Assuming that I don't know either one on a personal level, I would have to say...neither. Both vehicles would give me pause.
Of course, they also taught us that high government deficits and low unemployment will cause high inflation. And over the past 10 years, that theory hasn't been valid either. They say it's because productivity has increased also (because of the internet partially). They always have an excuse to justify any theory.
There was an unexpected increase in the nation's gasoline inventories reported today. That could be partially due to people driving less.
Evidently not yet. Number of speeding tickets have risen. You are impeding traffic on the freeway if you limit yourself to the speed limit. People haven't stopped buying lattes, smokes, booze, athletic event tickets, big screen TV's, cell phones, & other toys i.e. power boats. Almost forgot - Vacation homes for family pleasures.
In CA we meet the agent at the home. In Hawaii we always go to our realtors office and go looking from there. I always use our rental car because I hate being scrunched into his RAV4. We have used the same guy for 5 years in Hawaii and usually take him to lunch during our tour of properties. So it is different for different situations. I do base my selection of realtors on track record not vehicles. In Hawaii Big Island realtors tend to buy small SUVs. Though gas this last trip was cheaper than CA.
When you're selling, you get the agent with the Touareg who's aggressive as all get out. :shades:
Ok, got the car IM'd today (passed, thank you). Then I spent $8 on some gas - for the lawn mower. I remember when I could cut the grass all summer for a couple of bucks. Since I don't have any grass anyway, I could get out there with my slingblade and whack at the weeds, but it's more fun to borrow the neighbor's old riding mower and mow 'em down.
In the news, OPEC is threatening to cut oil and gas production to counter the proliferation of ethanol and other alternative fuels.
Why? They never take into account two major factors:
1:Greed.
2:Monopolistic behavior.
It looks good, but a good example would be gasoline. They know they have a captive audience, much like a drug supplier, so they feel no reason to give us a break. They could charge $10 a gallon and parts of our economy would still require fuel to move things around - let alone people who have to go places where using a car isn't optional.
I hope he doesn't get audited, can you say denied?
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
No such thing. No matter how you do it someone somewhere will get the short end of the stick.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
Energy is very inelastic as it takes a big change in price to reduce consumption. I mean people have to drive to work. But I do believe that consumption of gas is down slightly over the past few months (maybe not over the last year but the last 4-6 months). And yes part of the reaction will be delayed as people don't switch out cars every week. The person wanting to reduce gas consumption by getting a more fuel efficient vehicle may wait a few years when it comes time to get a new car.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
From what was posted I would presume it would be to small for that. If that was claimed the auditor would ask for proof, usually you would also be deducting the modifications for that.
Or hauls lots of dentures.
You can haul a lot of dentures in a Civic. That is unless King Kong is a patient.
I have never heard of anyone getting audited on legitimate deductions.
People get audited all the time, either because something is done that sends up a red flag or its randomly selected for an audit. In a case like this the auditor, if he or she is smart and experienced, would know what a typical dental practice has for deductions. A large SUV is not one of them as most dental practices have no need for them, so they will deny the deduction until the taxpayer can satisfy the auditor that it is a legitiment business expense.
I know small business people that hire their kids and give them big SUVs to drive.
So do I they give them big cars and big salaries and when I was in that aspect of accounting we told them not to. We one time had a client that started a fast food place hired his wife to work there (flipping burgers and such) and their two kids. He paid the wife $25 an hour and the kids $20 (industry average for this line of work was $7-8/hour at the time). He wrote it off as a business expense against our advice. When he was audited the IRS said no way. They took the difference of what he paid his family and what the industry standard is and denied it as a business expense. They did this going back the four years he was in business.
In short the difference was considered a dividend payment to the family and was taxable as business income. He ended up owing a few hundred thousand in back taxes, penalties and interest.
Do most people get caught? no, but many do.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
No such thing. No matter how you do it someone somewhere will get the short end of the stick.
You're probably right. Maybe they shouldn't refer to it as Fair Tax but instead call it Fairer Tax. It would be difficult not to improve on the convuluted, nonsensical system that we currently have.
Hypothetically. Let's say you have a society where everyone makes $100k per year. These people pay anywhere from $0 in taxes to $40k in taxes. You replace this system with one where everyone now pays $20k in taxes. Would you say that the people who had been paying $0 are getting the short end of the stick? My point is that a lot of the objections to changes in the tax code are from special interests that don't want to give up their preferential treatment. It has little to do with fair or unfair.
What with their consistent attempts to change their pollution standards to outpace diesel technology and thus render diesel cars verboten in the fine, gasoline-loving-but-fuel-economy-hating state of California.