OP
cowboydoc
Super Member
- Joined
- Dec 23, 2000
- Messages
- 6,725
- Tractor
- JD 8320 MFWD, JD 6415 MFWD, FEL, and cab, John Deere MFWD 4600, John Deere 4020, John Deere 4430, John Deere 455 mower, Deutz, and Gehl 4610 perkins skidsteer
Hee Haw,
Our corporation is set up as an ESOP. We can get into anything in the corporation as holdings, expense it off, sell it, etc. None of what I own is actually owned by myself, but by the corporation. Even our house is owned by the corporation and it is part of our benefit package so we can pay all the taxes, improvements, etc. from the company. That way I get around all the tax issues for a person. The nice thing about the way the ESOP is set up is that we only have to pay taxes on 10% of what the company actually makes as a whole plus whatever we take out for our personal wages, which isn't much. That includes the ranch, anything back home, that I'm into, etc. Also we can put up to $2500 a month for both my wife and I for retirement that is also pre-tax. That's why it makes sense for me to keep investing profits from my doctoring into ranching as I would just have to pay taxes on it anyway. This way if we sell something we can turn around and not be held to the capital gains tax law the same as an individual would be. To be honest with you I don't even understand half of it. I just do what the accountant tells me to.
Our corporation is set up as an ESOP. We can get into anything in the corporation as holdings, expense it off, sell it, etc. None of what I own is actually owned by myself, but by the corporation. Even our house is owned by the corporation and it is part of our benefit package so we can pay all the taxes, improvements, etc. from the company. That way I get around all the tax issues for a person. The nice thing about the way the ESOP is set up is that we only have to pay taxes on 10% of what the company actually makes as a whole plus whatever we take out for our personal wages, which isn't much. That includes the ranch, anything back home, that I'm into, etc. Also we can put up to $2500 a month for both my wife and I for retirement that is also pre-tax. That's why it makes sense for me to keep investing profits from my doctoring into ranching as I would just have to pay taxes on it anyway. This way if we sell something we can turn around and not be held to the capital gains tax law the same as an individual would be. To be honest with you I don't even understand half of it. I just do what the accountant tells me to.
