Wait a minute our great leader was clear. The $1K had NOTHING to do with the tax break our good ole rich boy POTUS gave us to “stimulate” our economy. #fakefacts. Tippy was clear that $1K was only coming from the company as a thank you to employees. And if you all bought that bag of $&|}!!! Then send me a note cause I have some swamp land in FL I would love to sell you. Sorry no deed but I’ll give you a great deal because it’s a thank you from me to you.
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2017 Tax Cuts and Jobs Act
faux pas
Scuse the faux pax, I meant BECAUSE of the Tax Break.
For the person asking about tax breaks, you’re correct that it is an expense, and like other expenses, reduces taxable income. I believe that there’s overlap in the fiscal year and the tax year, which allowed for expenses incurred before mid March 2018 to essentially get included in 2017 income. This was advantageous because it reduced the tax liability at 35% as opposed to the new 21% rate. While a smart tax play, it was still a large expense to the company to give back to employees, which is not to be overlooked.
Are they really calling him Michael now? I have only heard him being referred to by his last name with disgust.
@1grv---Explain this "tax break" to us, oh wise one. A bonus paid to employees is payroll-with payroll tax, Social Security, Medicare, and Work Comp. Not to mention state payroll taxes. Agents understand this very well, since they pay additional taxes when they bonus their employees. Generic talk of "tax breaks" and "write offs" from people who have no idea what they're taking about is rampant on forums like this one.
And BTW--a business expense is not a tax writeoff---it's a freaking business expense.
Bonus for employees, tax break for State Farm. A win win.