DSP's Loan & Savings Company

[marlintan]

I don't know why people keep saying this. You are allowed to both deduct business expenses and take the $12K standard deduction.

This is true on its face, but misleading.

2018 allowed sole proprietorships to deduct 20% of qualifying business income (I'm sure DSP claims all his income as qualifying income, in addition to taking the standard deduction).

Tax Cuts and Jobs Act, Provision 11011 Section 199A - Qualified Business Income Deduction FAQs | Internal Revenue Service

Find common questions and answers on the qualified business income (QBI) deduction, also called the 199A deduction.

www.irs.gov

This is the reason for the discrepancy between my estimates and y'alls (specifically @Haunter)'s estimates of income, I did not take this into account, as I don't do much accounting for sole proprietorships, but 80% of $135K lines up very nicely with my estimates of $105K-$115K.

His accountant almost certainly lined up the 20% deduction with the standard deduction and got his final benchmark.

I don't know why we keep talking about this.

 

[Haunter]

This is the reason for the discrepancy between my estimates and y'alls (specifically @Haunter)'s estimates of income, I did not take this into account, as I don't do much accounting for sole proprietorships, but 80% of $135K lines up very nicely with my estimates of $105K-$115K.

I've somehow been mistaken a couple times for being behind the estimates of Phil finances. All that's from @actually and @SoapQueen1. I can't be relied on to do basic math

 

[James Smith]

This is true on its face, but misleading.

2018 allowed sole proprietorships to deduct 20% of qualifying business income (I'm sure DSP claims all his income as qualifying income, in addition to taking the standard deduction).

That 20% pass-through entity disregard is a business deduction. Not only do you have the opportunity to use it on your Schedule C but you can use any other business expense too. Schedule C deductions have nothing to do with the $12K personal deduction which happens after your total personal income is calculated.

 

[actually]

At the risk of starting another goose chase, Phil just referred to the "behind the scenes" stuff again and talked about not having as much debt in his name. Certainly sounds like he's either still trying to do something with the WAKhando (either a refi or HELOC) to pay off a big chunk of his debt now or considering some kind of bankruptcy. Any of our resident financial experts want to weigh in? Also, at "12 hour work days". Clip below:

Behind the scenes - Streamable

Check out this video on Streamable using your phone, tablet or desktop.

streamable.com

 

[marlintan]

That 20% pass-through entity disregard is a business deduction. Not only do you have the opportunity to use it on your Schedule C but you can use any other business expense too. Schedule C deductions have nothing to do with the $12K personal deduction which happens after your total personal income is calculated.

Yes but it's misleading because you claim it is an expense deduction when in reality it is a deduction with no relation to expenses, it is only based on income. Miscellaneous income deductions have been removed for 2018, so you are left with COGS, assets for the business (which must be capitalized).

Deductions of entertainment expenses are no longer allowed in 2018, which falls into interpretation, as there is no guidance on "twitch streamers" from the IRS.

What I am getting at is that there is not a chance in hell that DSP takes anything but the standard deduction, he has already ran afoul of taxing agencies, and he is certainly on their watch list.

What is he able to claim? his office is maybe 150 SQFT, out of his condo that is 1800 - 2300 SF? that's less than 10% of the household expenses he would be able to claim.

https://www.irs.gov/pub/irs-pdf/i1040sc.pdf

Many things have changed for 2018 taxes, it's a whole new ball game.

 

[DarkScrubPhil]

From the way that Phil is saying things, I think he's trying to get rid of his debt by getting someone else to take control of it. Most likely scenario is that his parents are going to assume ownership of the CTondo...

I'll admit that CTondo doesn't quite have the same ring as WAkhando...

 

[marlintan]

At the risk of starting another goose chase, Phil just referred to the "behind the scenes" stuff again and talked about not having as much debt in his name. Certainly sounds like he's either still trying to do something with the WAKhando (either a refi or HELOC) to pay off a big chunk of his debt now or considering some kind of bankruptcy. Any of our resident financial experts want to weigh in? Also, at "12 hour work days". Clip below:

Behind the scenes - Streamable

Check out this video on Streamable using your phone, tablet or desktop.

streamable.com

If he wants to get a HELOC, then he is lying about defaulting on the CT condo.

If he is talking about credit cards that he has already defaulted on, and are in collections (which would make sense if he didn't already qualify for a HELOC in previous years, as they hand them out like sub-prime mortgages pre-2009), then he is likely dealing with a company that has purchased the debt from his lender, for fractions of pennies on the dollar, and are willing to settle up with him for reduced amounts.

From the way that Phil is saying things, I think he's trying to get rid of his debt by getting someone else to take control of it. Most likely scenario is that his parents are going to assume ownership of the CTondo...

I'll admit that CTondo doesn't quite have the same ring as WAkhando...

That would depend on if DSP has the right to assign his mortgage, but maybe his folks really are going to die, and are willing to give DSP the last of the money and eat as much of his debt as they can?

Parent - Child relationships are a funny thing.

 

[Sparkletor]

I'm no finance guru. Is it true that I can't spend hundreds if not thousands outside my means, put it all on credit, shift the credit around for a decade until I have over two dozen credit cards, and then say "oops, I can't pay. Plz forgive."?

 

[Prince Lotor]

I'm no finance guru. Is it true that I can't spend hundreds if not thousands outside my means, put it all on credit, shift the credit around for a decade until I have over two dozen credit cards, and then say "oops, I can't pay. Plz forgive."?

If you decide not to pay installments on your federal taxes for a year and then when the whole lump sum is due you just give the government the couple thousand your mom gave you so you can get accepted on a payment plan, you can then call all your credit holders up and say, 'SEE DOOD! I CAN'T PAY! I TOLD YOU I CAN'T PAY! I CAN'T EVEN PAY MY TAXES! YOU HAVE TO STOP CHARGING ME THE INTEREST RATE ON WHAT I OWE YOU, THAT I SIGNED A CONTRACT AGREEING TO, OR I WON'T PAY YOU ANYTHING!' and everything will be totally fine. Deciding you don't want to pay your taxes is clearly a severe financial distress, actually I'm pretty sure that they will have to start paying him for the privilege of holding on to the debt of such an august personage as he suffers the slings and arrows of outrageous fortune.

Also you want to pay your 'Tax Attorney, CPA, Accountant, Guy, Whatever' several thousand dollars to set up this 'not paying your taxes' plan to really seal the deal. The logic is so ironclad that everyone will know you are a good boi who did nothing wrong, and in just 1 Tweet you will have financially redeemed yourself. Also make sure to Tweet about it

 

[FamicomGorby]

If Phil really wanted to drum up some attention for his streaming "business" then he oughta go on Dave Ramsey, would love to get his take on this brilliant financial maneuver that Phil's cooked up. Could plug his stream to a bunch of people, some of whom are probably also financially irresponsible, while ignoring all advice and repeating "Nothin I could do!".

 

[ReentryPhantom]

If Phil really wanted to drum up some attention for his streaming "business" then he oughta go on Dave Ramsey, would love to get his take on this brilliant financial maneuver that Phil's cooked up. Could plug his stream to a bunch of people, some of whom are probably also financially irresponsible, while ignoring all advice and repeating "Nothin I could do!".

Or someone could pretend to be him on Dave Ramsay and give his exact situation and see what Mr. Ramsay has to say about it. I

 

[That Hedonist Nerd]

Or someone could pretend to be him on Dave Ramsay and give his exact situation and see what Mr. Ramsay has to say about it. I

YES YES A MILLION TIMES YES!

Now, nominations? Who does DSP best?

 

[ReentryPhantom]

YES YES A MILLION TIMES YES!

Now, nominations? Who does DSP best?

YES YES A MILLION TIMES YES!

Now, nominations? Who does DSP best?

I think Theo actually does the best DSP

 

[Synth]

I think Theo actually does the best DSP

Theo, LSB, and Tevin are all pretty bad, tbh. Tevin is the best with DSP'isms, but he's still far too nasally. Phil's voice isn't actually all that nasally, tbh, it's just present in a few of his sounds and everyone who tries to mimic him ends up applying it universally across everything.

 

[Freshtodeath]

DSP discusses his current financial situation

DarkSydePhil: Bankruptcy Not Allowed

Phil's bank denied his bankruptcy request and he ranted about it.

www.youtube.com

 

[RobVC3]

What does that even mean if he goes bankrupt?

Sorry, Im actually good with money and have never had to look up anything about it or care too.

 

[actually]

What does that even mean if he goes bankrupt?

Sorry, Im actually good with money and have never had to look up anything about it or care too.

TBH, the main interesting thing with the bankruptcy (imo) is whether or not it forces the sale of the WAKhando.

 

[chicken wings]

DSP discusses his current financial situation

DarkSydePhil: Bankruptcy Not Allowed

Phil's bank denied his bankruptcy request and he ranted about it.

www.youtube.com

I've sat through pre bankruptcy proceedings before. One of the things the financial advisors will touch on is to drastically reduce your way of life and liquidate whatever you can. I'd love to know how much DSP is willing to get rid of in order to sustain and what his reasons are for not getting rid of unneeded shit like his subscriptions to Netflix and the WWE network.

 

[Eugene Drizzledick]

TBH, the main interesting thing with the bankruptcy (imo) is whether or not it forces the sale of the WAKhando.

The WAkhando is why bankruptcy doesn't look like an option for Phil. If he's able to live there, then he's making too much to claim bankruptcy. If he sells the WAkhando and moves back to CT, then he has a nice nest egg for a while (until he probably blows that like an idiot).

 

[James Smith]

TBH, the main interesting thing with the bankruptcy (imo) is whether or not it forces the sale of the WAKhando.

I want to know this too. I can't find anything saying your bankruptcy trustee can choose which property to sell when you own two. Most likely it's your decision as the petitioner.

But it would be fucking hilarious if it's not DSP's decision because from the trustee's perspective it's a no-brainer; selling the WA condo and moving back to CT will result in more assets being available to pay off his debt than staying in WA and abandoning the CT condo will, full stop.

EDIT: It looks like Washington has a $125K homestead exemption which says it applies to your primary residence, so he won't be forced to sell the WA condo. $125K refers to the amount of equity he has in it, not its value. He doesn't have anywhere close to that much equity in it.