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4maggio · #1 (**permalink**) 10-21-2009, 11:59 AM

High all..

Soon, I will be 62 and am part owner (with my wife) of an s-corporation.

My corp has been hit hard since 2005 when gas prices started to go above $2.40.. A corp that grossed $500K (in 2005), now grosses $240K (in 2009). In the 2nd quarter, I cut my salary about 1/2, so I could continue to pay employees and bills, since August, I take no salary... (I'm retired from a fortune 500 company).

So when I filed for SS, I had to 'go see them'.

Bottom line.. they say that because I own the corp, I can make my salary anything I wish it to be..

I used to work 20-30 hrs a week. Now I work only 10-15.. they say that I will not get SS payments this year because the 2 previous years (2007 & 2008) I made over their minimum (14K/yr) and they presume that I will make the same this year as I made in 2008 even though I will make under that amount. After I do my 2009 taxes, I can present them and THEY will determine how much I 'should' be making (regarless of reality!), and I will have to present my annual taxes to them each year there after that until I ether: turn 66 or sell the corp, and I can't sell it to my wife or son..

My suggestion to you coprorate officer of closely held corps, if you are approaching SS time, start pareing down your salary 2 years before you are going to sign up. That is what they want to see.. 2 years taxes personal and corporate.

I had to tell someone.. more distribution of wealth.

Sprocket · #2 (**permalink**) 10-21-2009, 12:03 PM

wow, no offense, and with all due respect, it sounds like you should be fine, and do not necessarily need SS. i come from a poor home, so when i hear those that are financially secure complaining, it amazes me. we have always done without and made things work. be grateful you havent been bankrupted by the economy, my friend. peace and freedom.

Michael · #3 (**permalink**) 10-21-2009, 12:13 PM

On a similar topic, if you are on SSI or SSD and you have any old warrants - for anything - expect to get screwed. Last November, I had to fly myself to Texas and turn myself in for a 10 year old misdemeanor pot possession charge.

I had the charges dropped. But, they say that, since the charges weren't vacated, I owe them $27,000+ dollars for the money they paid me from Jan 1, 2005 until Oct, 2008. I still owe them the money. They are taking $25/mo until hell freezes over.

$25/mo is painless, of course. But, this might be an issue for me, as I'm about to be off of SSI/SSD (my last check will be in Feb).

How messed up is that?

Sprocket · #4 (**permalink**) 10-21-2009, 12:17 PM

its complete BS. if you have money, you have help. if you do not, well....you're on your own. thats why us little people have to look out for each other.

4maggio · #5 (**permalink**) 10-21-2009, 01:20 PM

Quote:

Originally Posted by Sprocket

wow, no offense, and with all due respect, it sounds like you should be fine, and do not necessarily need SS. i come from a poor home, so when i hear those that are financially secure complaining, it amazes me. we have always done without and made things work. be grateful you havent been bankrupted by the economy, my friend. peace and freedom.

High sprocket.. will I be 'fine'? (no offense taken..)

Yes, I too come from a poor home.. I worked for 30 years, so I din't have to 'do without' ... retired and yes, now I have a small corp, (still working) and a house...will I be fine?! not bankrupt? I do not know.
SS is what I've paid into for 45 years, non workers (able to work) get it, no problem. Do they deserve it? Not in my world.

So, you say, because I made $24K for the past two years, that is 'finacially secure'? I guess it's a matter of perspective. (age).

Let me ask you... Did you get a Federal stimulus check last year?
Did you go out and buy a new car with it? LOL!!
If you think that that $236 check was alot of money then I apologize and 'I' have lost perspective.

Maybe it's just me but I put into it for a long time.

Financially secure? NO! Who pays the employees? The rent?
The mortgage ? The insurance? when the gross is down 55-65%.
I must eat, too.

Why do I have to be below the poverty level before I get some payback?
My exwife died at 52.. where did her SS 'donations' go? (this is getting political! sorry)..

Yes, the economy is killing me. Bankrupt.. maybe.

Michael · #6 (**permalink**) 10-21-2009, 01:24 PM

I think it was a simple misunderstanding.

I see why it happened. Those look like big numbers. But, most people don't understand the overhead involved in running a business - until they try it, themselves, that is. Then, they see how hard it is to pay all the bills.

Sprocket · #7 (**permalink**) 10-21-2009, 01:39 PM

Quote:

Originally Posted by Michael

I think it was a simple misunderstanding.

I see why it happened. Those look like big numbers. But, most people don't understand the overhead involved in running a business - until they try it, themselves, that is. Then, they see how hard it is to pay all the bills.

that is exactly the case! i apologize if i came across in a negative way. i hope you and your family are doing well and continue to do so. forgive my offense.

4maggio · #8 (**permalink**) 10-21-2009, 01:40 PM

Quote:

Originally Posted by Michael

I think it was a simple misunderstanding.

I see why it happened. Those look like big numbers. But, most people don't understand the overhead involved in running a business - until they try it, themselves, that is. Then, they see how hard it is to pay all the bills.

Well said Michael... something like 85% of all business started fail. and they fail, mostly because the people starting them have no idea of the complexity and hard work that is necessary to suckseed (<<LOL!)

Some look only at the bottom line gross, bottom line net is the figure..
$250K/year, unless it is a home based business, isn't very much. The figures change when you are a, walk in, customer based business that is service oriented.

We little guys can not outsource to the phillipines to boost the bottom line. My employees are important to me..

4maggio · #9 (**permalink**) 10-21-2009, 01:42 PM

Quote:

Originally Posted by Sprocket

that is exactly the case! i apologize if i came across in a negative way. i hope you and your family are doing well and continue to do so. forgive my offense.

NP sprocket.. like I said, no 'offense taken'..

Thank you.

Sprocket · #10 (**permalink**) 10-21-2009, 01:45 PM

no sir, thank you for being civil!