Biden speach

SStockDart · 05-03-2021, 04:31 PM

Thank you and you are correct. I've been retired 15 years. It can either be EBITDA or IBITDA. Earnings or income. Also called gross profit. Polititions often take this number to make the statement that companies don't pay taxes. As an example, if a company makes $1,000,000 IBITDA and they don't have interest payments, taxes due, depreciation, or amortization...... then the company would owe taxes on the $1,000,000. In elementary terms, if this same company bought $5,000,000 worth of capitalized equipment, and depreciated it over 5 years (equals $1,000,000 depreciation each of 5 years) the company has zero tax obligation for the year. Taxes are like this to provide incentives for companies to buy equipment and keep economy moving.
If you have set up your racing operation as a business, be sure you depreciate/amortize your truck, trailer, part of an office, garage. If you generate winnings, you can use it to pay for such.
Whew.....oh, and see an accountant.

05-03-2021, 04:31 PM	#6
SStockDart VIP Member Join Date: Dec 2007 Location: Arizona, Texan forever Posts: 1,176 Likes: 879 Liked 574 Times in 212 Posts	Re: Biden speach Thank you and you are correct. I've been retired 15 years. It can either be EBITDA or IBITDA. Earnings or income. Also called gross profit. Polititions often take this number to make the statement that companies don't pay taxes. As an example, if a company makes $1,000,000 IBITDA and they don't have interest payments, taxes due, depreciation, or amortization...... then the company would owe taxes on the $1,000,000. In elementary terms, if this same company bought $5,000,000 worth of capitalized equipment, and depreciated it over 5 years (equals $1,000,000 depreciation each of 5 years) the company has zero tax obligation for the year. Taxes are like this to provide incentives for companies to buy equipment and keep economy moving. If you have set up your racing operation as a business, be sure you depreciate/amortize your truck, trailer, part of an office, garage. If you generate winnings, you can use it to pay for such. Whew.....oh, and see an accountant. __________________ Gary Hansen - SS/FA 4911, B/SA 4911