This answer confuses me. My question was: Am I right that in US if you buy a property with your income you won't need to pay tax for it? PHP: I didn't mean "First selling a property and then buying ...". Lets clear my question: Lets say a person didn't have a house and just this year bought one and lets say he pays by cash. Can he say: I earned $70000 this year and bought a house for $200000 so I don't have to pay any tax for this year.? .
What about the Indians... How is the tax structure around for them? Is it true that overseas income earned by Indians are not liable to be taxed? Some say, the tax is deducted at the source itself i.e the foreign client deducts and that is why such persons do not need to pay tax once again in India, While some others are of the opinion, that all money earned from abroad are exempt by Indian government. Which is true?? And what is the % for an individual and company???? Thanks gkb
You are wrong, you have to pay for the house with money that is already taxed. There is no tax advantage. The only tax advantages are the ones that I mentioned. Sorry for the confusion. wiz
The more money you earn, the more you get taxed. BUT, the more money you earn, the easier it is to SAVE on tax. The poor pay tax, the rich don't. Which is funny as tax was introduced to penalize the rich.
Most of the "loophole" deductions disappeared long ago. Worse, the AMT made deductions almost meaningless. The top 1% of income earners paid 21% of all federal income taxes in 2006. The top 5% paid 37% and the top 10% paid 48.7%. The top 20% paid 64%. The bottom 20% paid 1.1% and the next from the bottom paid 5.2%. Congressional Budget Office: http://www.cbo.gov/ftpdoc.cfm?index=5746&type=0&sequence=1