DSP's Loan & Savings Company

[Destro1986]

A few points.

The self-employment tax is the tax for Medicare and Social Security. Normally, roughly 7% is taken out of the paychecks of employed workers, with the other 7% covered by the employer. However, for self-employed people, they have to pay the full 14~% or so themselves. And this is on top of the normal taxes.

Second, you guys are forgetting about penalties and interest. For both the state taxes and the quarterly payments, there is a penalty that is on top of the tax. For the quarterly payment, there is a 4 or 5% penalty per month when it's not paid. (I can't remember what it is for 201. This would no doubt be part of the 16,000 that he owes.

It would also be part of the 5,000 that Phil owed for state taxes. He probably does make about 100,000 per year, but not much more than that.

I think you're lowballing his deductions. He can deduct part of his bills, part of his mortgage, plus his state taxes (until this year). Just the $10k for his taxes and "tax attorney" bumps your estimate mighty close to $100k.

 

[James Smith]

He can deduct interest for both of his mortgages. This is why I say $100K is a low estimate; people don't realize he has probably $35K a year of untaxed income just from that.

 

[actually]

He can deduct interest for both of his mortgages. This is why I say $100K is a low estimate; people don't realize he has probably $35K a year of untaxed income just from that.

Based on my numbers from the other thread, I agree. I have him at up to $130k with just Twitch and Youtube.

 

[DarkSoulsPhil]

implying the pig is smart enough to deduct mortgages

 

[Destro1986]

implying the pig is smart enough to deduct mortgages

Smart enough to hire someone to do it, but not smart enough to keep from paying them $5k for it.

 

[actually]

He can deduct interest for both of his mortgages. This is why I say $100K is a low estimate; people don't realize he has probably $35K a year of untaxed income just from that.

$17.5k in mortgage interest from each property seems high, though, doesn't it? At the risk of minor powerleveling, my mortgage payment is about $1200, and the interest will be around $5k-$6k or so for the year. He'd have to be paying $1458 in interest out of each mortgage payment to hit $17.5k for the year, and he's already said that both are around $1500.

If I misunderstood, please let me know.

 

[Cornstarch Colonizer]

I think you're lowballing his deductions. He can deduct part of his bills, part of his mortgage, plus his state taxes (until this year). Just the $10k for his taxes and "tax attorney" bumps your estimate mighty close to $100k.

No, no, I took that into account. It's really not as much as you think it would be.

Remember, it's the smallest bedroom in a 1695sq/ft Kahndo. I estimated that room at 200sq/ft. That's about 12% of the home. Going by data I've read on this website and videos and my own knowledge of Mortgages the most I can get him up to is 12% of $1800 a month. That's also assuming he can deduct a percentage of his home insurance and miscellaneous charges I'm forgetting about.

I had to give him a gold health insurance plan to get him up barely over 15k.

 

[Destro1986]

No, no, I took that into account. It's really not as much as you think it would be.

Remember, it's the smallest bedroom in a 1695sq/ft Kahndo. I estimated that room at 200sq/ft. That's about 12% of the home. Going by data I've read on this website and videos and my own knowledge of Mortgages the most I can get him up to is 12% of $1800 a month. That's also assuming he can deduct a percentage of his home insurance and miscellaneous charges I'm forgetting about.

I had to give him a gold health insurance plan to get him up barely over 15k.

And the $10k in state taxes/preparation fees?

 

[Cornstarch Colonizer]

And the $10k in state taxes/preparation fees?

Well, I added in the 5k back taxes and that got him to $86k even though I think that applies to the 2017 tax deductions. The tax preparation fees are deducted at the time the taxes are being sent out, so that's a 2017 deduction also.

Of course, this is Phil we're talking about, so he could've used those same numbers when estimating what his 2018 taxes are going to be. He is incredibly stupid.

 

[James Smith]

$17.5k in mortgage interest from each property seems high, though, doesn't it?

I haven't looked at an amortization calendar recently but he should still be making almost entirely interest payments on both mortgages. If they're around $1500 a month each that adds up fast.

 

[actually]

I haven't looked at an amortization calendar recently but he should still be making almost entirely interest payments on both mortgages. If they're around $1500 a month each that adds up fast.

Maybe I got a much better mortgage than he did, but my ~$1200 payment (in year 2 of the mortgage) breaks down as $350 to principal, $420 to interest, and remainder to escrow for property tax and homeowners' insurance. If he's still paying almost entirely interest on that CT condo, that would blow my mind at $1500 a month.

 

[James Smith]

Last year:

• DSP paid all of his quarterly estimated tax payments last year
• DSP owed about $4K to the IRS last year after his estimated payments
• DSP raised several thousand dollars more than usual at the end of last year
• DSP used the extra money to move Kat in, buy Kat things, pay his federal and state taxes, and pay a tax attorney
• DSP had to pay some of his taxes with credit cards

This year:

• DSP has made more money this year than last year
• DSP has made no estimated payments to the IRS
• DSP expects to owe about $16K for his taxes

Assume- for the sake of this thread- the above are more or less the truth.

If DSP paid around $16K to the IRS last year, which I think is a reasonable estimate, he was saving around $1333.33 a month. Why was he unable to save $1333.33 a month this year despite more income this year than last year? What was he spending an extra $1333.33 on each month?

I don't believe he was spending that money on Kat's car insurance, health insurance, gas, or food. Kat began working almost immediately and even on minimum wage would have been making $1299 a month working half time while living rent-free, so I don't believe he was paying any expenses for her other than some negligible extra electric and water/sewer charges for a second person bathing and doing laundry.

 

[Prince Lotor]

Last year:

• DSP paid all of his quarterly estimated tax payments last year
• DSP owed about $4K to the IRS last year after his estimated payments
• DSP raised several thousand dollars more than usual at the end of last year
• DSP used the extra money to move Kat in, buy Kat things, pay his federal and state taxes, and pay a tax attorney
• DSP had to pay some of his taxes with credit cards

This year:

• DSP has made more money this year than last year
• DSP has made no estimated payments to the IRS
• DSP expects to owe about $16K for his taxes

Assume- for the sake of this thread- the above are more or less the truth.

If DSP paid around $16K to the IRS last year, which I think is a reasonable estimate, he was saving around $1333.33 a month. Why was he unable to save $1333.33 a month this year despite more income this year than last year? What was he spending an extra $1333.33 on each month?

I don't believe he was spending that money on Kat's car insurance, health insurance, gas, or food. Kat began working almost immediately and even on minimum wage would have been making $1299 a month working half time while living rent-free, so I don't believe he was paying any expenses for her other than some negligible extra electric and water/sewer charges for a second person bathing and doing laundry.

I think, on some level, this black-hole always boils down to: exactly how much total credit card debt does he have, and just how fucked is he currently getting on the interest payments for that debt.
iirc he said of putting the $10K his 2014 through 2017 B&O state taxes cost him on credit cards that that "maxed out" all his available lines of credit.

I also think he was spending very cavalierly to impress Leann. .Uhh. .Kat, with his big-boy serious adult lifestyle and was basically deficit spending by skipping his Quarterly payments to do so, and was banking on his Q4 YouTube AdSense payments to be at least double of what he is actually getting this year.
As soon as he started seeing the first of those Q4 YouTube AdSense payments he started up with those vague 'Guys, I'm nervous about the future', 'I may really need you help this year', 'Something is going to have to change' statements trying to prime his audience for X-treme begging.
The only thing I think really fluctuated that much for him this year are his YouTube payments. With what I know of Phil I'm just waiting for a mid-January rant about how shitty his Q4 YouTube payments were, or some other indication of how shitty his January AdSense payments are looking to be where he will drop some comparison to what it had currently been paying out this December.

 

[harbinger]

Last year:

• DSP paid all of his quarterly estimated tax payments last year
• DSP owed about $4K to the IRS last year after his estimated payments
• DSP raised several thousand dollars more than usual at the end of last year
• DSP used the extra money to move Kat in, buy Kat things, pay his federal and state taxes, and pay a tax attorney
• DSP had to pay some of his taxes with credit cards

This year:

• DSP has made more money this year than last year
• DSP has made no estimated payments to the IRS
• DSP expects to owe about $16K for his taxes

Assume- for the sake of this thread- the above are more or less the truth.

If DSP paid around $16K to the IRS last year, which I think is a reasonable estimate, he was saving around $1333.33 a month. Why was he unable to save $1333.33 a month this year despite more income this year than last year? What was he spending an extra $1333.33 on each month?

I don't believe he was spending that money on Kat's car insurance, health insurance, gas, or food. Kat began working almost immediately and even on minimum wage would have been making $1299 a month working half time while living rent-free, so I don't believe he was paying any expenses for her other than some negligible extra electric and water/sewer charges for a second person bathing and doing laundry.

I’m not sure if it affects your line of thinking, but he has said in the past he would pay his quarterly federal taxes on his credit cards and pay them down. I guess it’s possible he was paying ~$1400 per month on his credit card bills.

I bring this up because it would have made more sense to put away $1400 per month for the tax bills. He could have put it away in a savings account and received 1-2% interest on the money while it sat in the account waiting for the payment to become due. Instead he paid on his cc and got hit with a ~20% interest rate he had to pay. He is truely non-unretarded when it comes to money.

 

[James Smith]

Says he could reduce his monthly payments by $2500 or more.

This man has tens of thousands of dollars of credit card debt.

 

[actually]

Whelp, that explains why $100k+ was just enough to stay afloat. How the fuck can you look at that and go "yeah, this is fine"?

 

[James Smith]

And that means he has OVER $100K of credit card debt, because that's just how much he can LOWER the payments.

 

[Wing Zero]

And that means he has OVER $100K of credit card debt, because that's just how much he can LOWER the payments.

...I can't even fathom having 100k of credit card debt. The banks really are making...well, BANK on him.

 

[James Smith]

I'd like to suggest that his money problems are in fact NOT everyone else's fault because they're not a result of his income decreasing. They're the result of spending tens of thousands of dollars on god knows what with money that wasn't his, didn't pay it back for no fucking reason, and kept repeating the cycle.

Just like he thought his income would never decrease, he thought his credit limit would never creep up on him.

 

[Destro1986]

I mean he literally just told us that he put $10k on his CC's last year. He has also talked about how he used to buy everything on CC's.

I consider this supportive of the position that he has a ARM that may be getting ready to balloon.

I wouldn't be surprised if he's been paying his mortgages with CC's for years.

@SoapQueen1 Plus what are the rates on cash advances? We know he took thousands in cash advances; what if it was $10-15k? What would that swell to if you made minimum payments for a decade?