my wife and I income is $165.000 we purchased a tractor for$ 70.000 will receive $30.000 in rent how can we lower our tax bill?

$5.000 in sale taxs

8 Answers

Relevance
  • 1 month ago

    Can't lower the sales tax. You bought the tractor for personal use? Not deductible at all. Rent is not deductible.

    • Login to reply the answers
  • 1 month ago

    Take accelerated depreciation on the tractor. The sales tax is part of your basis (that's accounting jargon which for you means cost) in the tractor, not a personal itemized deduction. Put as much as you can into retirement accounts.

    • Login to reply the answers
  • Brian
    Lv 7
    1 month ago

    Since you're a farmer, donnie's already given you free money.

    • Login to reply the answers
  • 1 month ago

    If the tractor is used for your business you many be able to depreciate it over a period of years. See a tax expert.

    • Login to reply the answers
  • How do you think about the answers? You can sign in to vote the answer.
  • 1 month ago

    It is almost like you randomly picked a bunch of words and through them down.

    Ask a more coherent question and see a tax professional.

    • Login to reply the answers
  • 1 month ago

    If your gross is $165k, then you should employ an Enrolled Agent as a tax preparer. First, their fee is a tax deduction. Second, they will take deductions you are not aware of. Third, the government very rarely audits the returns that Enrolled Agents have prepared because they will not risk their careers to cheat.

    • Login to reply the answers
  • hmmm … i  think  you  used  periods  instead  of  commas.

    • Barkley Hound
      Lv 7
      1 month agoReport

      Many European countries use periods instead of commas and commas instead of periods in numbers.

    • Login to reply the answers
  • Eva
    Lv 7
    1 month ago

    The standard deduction for a married couple is over $24,000 so that sales tax may not help you much. Your rental expenses are written off against the rental income so that should lower your gross income. There aren't a lot of things to do that can lower your tax bill. They all require spending money, so it's not usually worth spending $10,000 to get a $2500 benefit.

    • NA
      Lv 7
      1 month agoReport

      Unless they meant the sales tax was for the tractor.  Then it would be part of the basis.

    • Login to reply the answers
Still have questions? Get your answers by asking now.