Out of the cage

Today (Sunday) they let me out of my pen, or rather I took myself out, to do one of these. I did the easiest run, which at points, due to the crowd, was more of a stroll. But the elevation gain made it rough, and the downhill,which I had so been looking forward to, was a bone-jarring descent over a series of waterbars. Still it was a lovely trail and awesome scenery. And I'll be able to rest my sore bones in the swivel chair all day tomorrow, surely not the best remedy.

Spent yesterday (Saturday) trying to figure out when and how you deduct a SEP IRA contribution for a S-Corp >2% shareholder, and whether you are allowed to do it even if it brings the S-Corp income down below zero. (Answer: yes, probably, if there is basis in the corporation.) If the same issue has been bothering any readers, people who care are talking about it here and here .

Also discovered an interesting twist on the gambling winnings issue. As previously mentioned, even when you can deduct your gambling losses dollar for dollar against your gambling winnings, the increase in adjusted gross income from the gross gambling winnings can sometimes render other previously tax-free income taxable (case in point, Social Security income - sometimes). However, income from gambling winnings also increases your sales tax deduction! Pretty cool, huh? The IRS has established an allowable sales tax deduction based on your adjusted gross income. Even though when you deduct gambling losses to the extent of your gambling winnings you are in effect declaring that you did not make purchases subject to sales tax with this income, the IRS still lets you have the calculated sales tax deduction. William Bennett take note.

As always, none of this is meant to be construed as tax advice, just generalized ranting.