You’re gonna get the 10% waived then, right?
yes no 10% early withdrawal penalty. I will have to pay regular income taxes. Because most of our income passes through the business our marginal rate will be something like 15% combined state and federal. Being independent all of our health insurance and HSA expenses run thru the business that really helps offset the cost of not having employment based insurance.
This is wild, I don’t even want to look at my effective tax rate…
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Dude it’s really gross. It’s like there are two totally different tax systems: one for the commoners who work for someone else and one totally separate one for the people who own stuff. And when the shit hit the fan we got bailed out reasonably hard as well.
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If you guys saw real estate developers’ tax returns you would puke.
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Next you’re going to tell me they pay like $750.
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In my case I think our business advantage roughly cancels out not having any holidays, vacation, benefits etc.
To really grift the tax code you gotta make big dollars in the first place.
I looked up my 2019 tax return and yeah it is gross when I see what owner class people do with tax avoidance. Can someone fix that please thanks.
Like I don’t have a problem voting for people that will increase my already very high tax rate but shitbag owner class dudes are pissed because their tax bill might go from 1% to 2%. Guillotine them all
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Whew- double checked that my tax rate isn’t in guillotine territory. 
It is so bizarre. As a an small independent business I sweat over every penny we put against the business making sure we have justification and documentation. Health insurance is by far #1 (~18k?) then a blanket business insurance policy (3k?) From there it’s my wife’s train pass for her downtown clients (pre 2020) and we charged a little less than half our phone/internet (train and technology each about 2k).
Meanwhile dotard spends 70k on the care and feeding of that thing on his head.
Can confirm
It’s outrageous
Pretty much they made millions but “lost” millions more so not only no taxes this year, but carryover losses for years to come?
No man I’m not talking about you, it’s the people bringing in millions a year who do everything they can to avoid paying tax. Doesn’t really bother me if small business owners get some tax breaks compared to workers
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I know, I was going for the gag.
It’s like working for a company on an expense account. When you are low on the totem pole you order the less than $20 entree for fear of being audited. Once you are management you spend like a drunken sailor.
yup this is why so many doctors try to be independent contractors instead of employees.
I long for the days when my marginal rate was higher. It meant I was bringing in significantly more.
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Also they have “R&M” every years. Including fence repair
The property doesn’t even have a fence but it gets repaired every year.
You can spread those taxes out over 3 years AND if you pay yourself back the 20k within 3 years then you don’t pay ANY taxes on the withdrawal. So hopefully things will get better for your business and you can pay it back.
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True. Any idea if I pay then this year (cause my rate is low) if I can then reclaim the tax if I pay it back within the 3 year window?
Or if you’re a traveling alcoholic, figure out that HR won’t let you use your per diem at a bar but for some reason always approves airport receipt codes for wine. Definitely not speaking from experience 
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Airport receipts travel cost, not meal cost, ldo.
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