Terrible tax surprises
IRS computer glitches, delays mar 2011 tax filing season

Missouri Senator owes nearly $300,000 in private plane property taxes

Sen. Claire McCaskill admitted Monday that she owes four years of back taxes totaling nearly $300,000 on a private airplane.

The Missouri Democrat said she would pay the personal property tax bill immediately. More importantly, she has told her husband to "sell the damn plane."

Private plane by whatleydude flickr Photo by whatleydude via Flickr (not McCaskill's troublesome plane!)

McCaskill, a former Missouri state auditor, took full responsibility for the failure to pay the $287,000 in back taxes owed St. Louis County. That's where the aircraft is housed.

She insisted there was no larger tax evasion scheme, noting that state and county sales taxes on the plane were paid.

Although McCaskill quickly put out this tax fire, it still could hurt her 2012 re-election chances.

Somebody could make a gazillion dollars if they set up a business to do constant and complete checks of tax considerations and potential tax pitfalls for every elected official. The franchising possibilities are endless.

Personal, not real, property taxes: Most of the time when we (OK, me) hear the phrase property taxes, we (OK, me) think about the annual real estate taxes that we pay on our homes.

But some local jurisdictions also collect taxes on personal property.

Taxable personal property typically includes vehicles, trailers, mobile homes, watercraft, livestock, farm machinery and equipment, agricultural crops, furniture, fixtures, tools, and any other personal property that is not exempted by law like, for example, private airplanes.

The one good thing about these additional levies is that they might be able to reduce your IRS bill.

Both real and personal property taxes generally are tax deductible on your federal tax return if you itemize.

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Atlanta Roofing

You’re right, my mistake for not noting the difference. And obviously, Claire’s problem is a much bigger deal, but I’m talking principle here.
Were you just as critical of Sarah, regardless of amount that she neglected to put on her tax returns?

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