Letter: Invest in better tax knowledge
Monday, August 15, 2011
I was dismayed to read the lack of business knowledge in our local business owners in the Aug. 9 story “Herrera Beutler hears concerns from local business owners.” Eric Golemo decries not getting credit at tax time for reinvesting in his business. But any equipment he buys can be written off the first year, and any expenses he pays are written off. Isn’t that getting credit at tax time?
Jared Franson complains that he isn’t given credit for paying off his loan principal. He is deducting his interest payments, and depreciating the property he bought with the loan, and didn’t pay tax on the loan proceeds, why should he get credit for paying his loan back? No one gets to write off principal payments — not on homes or business loans.
One does not have to be a big company or have political connections to hire a good enrolled agent or CPA for tax consulting. They are not that expensive, and it sounds like it would be a good investment (and deductible) for these gentlemen. Be happy you are paying taxes, and hope to pay more next year — it means that you are doing well. It is this kind of misunderstanding and misinformation that contributes to the impasse in Washington, D.C.
James G. Broadwell