a $600 deduction

VicNicSor

Banned
Russian
His brother, David, went through several of the best Eastern colleges for short periods of time and through several marriages for even shorter periods of time. He is now a successful six-goal polo player and is listed on Linus' tax return as a $600 deduction.
Sabrina, film

What does it exactly mean? I understand he pays less tax, but what does "$600" refer to?

Thank you.
 
  • SwissPete

    Senior Member
    Français (CH), AE (California)
    Presumably, Linus is his father, who supports him.
    Linus' father can then take a tax deduction of $600.00 on his tax return.
     

    VicNicSor

    Banned
    Russian
    Presumably, Linus is his father, who supports him.
    Linus' father can then take a tax deduction of $600.00 on his tax return.
    His older brother actually. But I'm still confused — why would David be a "tax dedutcion" on Linus' tax return list? Is it a joke, a figurative meaning?...
     

    SwissPete

    Senior Member
    Français (CH), AE (California)
    In the US at least, having dependants allows you to deduct a certain amount of money from your income, thus paying lower taxes.
     

    VicNicSor

    Banned
    Russian
    In the US at least, having dependants allows you to deduct a certain amount of money from your income, thus paying lower taxes.
    A little more context: later into the movie we learn that David is a junior partner of Larrabee Industries, and Linus is probably the boss. Also, David is a quite irresponsible, immature "partner". Does that change anything?..
     

    SwissPete

    Senior Member
    Français (CH), AE (California)
    With Linus being the boss and David a partner (rather than a relative who could be claimed as a deduction), the situation becomes a little murky. But the fact remains that "a $600 deduction" is still an amount that can be deducted from income in order to minimize tax liability.
     

    SevenDays

    Senior Member
    Spanish
    His older brother actually. But I'm still confused — why would David be a "tax dedutcion" on Linus' tax return list? Is it a joke, a figurative meaning?...
    I'm basically repeating what's been said already. If I'm responsible for a family member (financially, or through other means), then I can claim that family member as a "dependent" on my taxes, and in doing so I take a credit (in this case, a $600 credit), which lowers my overall tax liability. I don't quite remember the movie (is this the original, or the remake?), but what sticks in my memory is that they come from a wealthy family and live in the same estate. Linus runs the family business and David, supposedly, works for Linus, but that's in name only. Fact is, Linus is a workaholic, and David is a playboy. So, technically speaking, Linus is financially responsible for the fun-loving and irresponsible David, and so Linus (financially savvy as he is) takes David as a "dependent" for tax purposes. The tax credit is not because Linus "employs" David; it's because Linus is in actuality financially responsible for David, so Linus might as well take a tax credit for it.

    Now, can Linus really claim David as a "dependent," given that David in theory is fully employed in the family business, and therefore capable of earning enough money to support himself? Maybe. I suppose the rich and wealthy can "claim" all sorts of things on their tax returns, and they have experienced tax lawyers and accountants to get away with it. But this is really a minor point in the movie; the main point is that Linus is all about work, and David all about having fun.
     
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