tax_collector.py

   1 import utils
   2 from money import money
   3
   4 class tax_collector(object):
   5     def __init__(self):
   6         # These four accumulate and then clear every year (i.e. every call
   7         # to record_taxes_paid_and_reset_for_next_year)
   8         self.ordinary_income = money(0)
   9         self.short_term_gains = money(0)
  10         self.dividends_and_long_term_gains = money(0)
  11         self.roth_income = money(0)
  12
  13         # The rest of these aggregate and are used as part of the final stats.
  14         self.total_tax_bill = money(0)
  15         self.total_ordinary_income = money(0)
  16         self.total_short_term_gains = money(0)
  17         self.total_dividends_and_long_term_gains = money(0)
  18         self.total_roth_income = money(0)
  19         self.total_aggregate_income = money(0)
  20
  21     def record_taxes_paid_and_reset_for_next_year(self,
  22                                                   taxes_paid):
  23         assert taxes_paid >= 0, "You can't pay negative taxes"
  24         self.total_tax_bill += taxes_paid
  25         self.total_aggregate_income += self.get_total_income()
  26         assert self.total_aggregate_income >= 0, "Accumulator should be >= 0"
  27         self.ordinary_income = money(0)
  28         self.short_term_gains = money(0)
  29         self.dividends_and_long_term_gains = money(0)
  30         self.roth_income = money(0)
  31
  32     def record_ordinary_income(self, amount):
  33         assert amount >= 0, "Income should be non-negative; got %s" % amount
  34         self.ordinary_income += amount
  35         self.total_ordinary_income += amount
  36
  37     def record_short_term_gain(self, amount):
  38         assert amount >= 0, "Income should be non-negative; got %s" % amount
  39         self.short_term_gains += amount
  40         self.total_short_term_gains += amount
  41
  42     def record_dividend_or_long_term_gain(self, amount):
  43         assert amount >= 0, "Income should be non-negative; got %s" % amount
  44         self.dividends_and_long_term_gains += amount
  45         self.total_dividends_and_long_term_gains += amount
  46
  47     def record_roth_income(self, amount):
  48         assert amount >= 0, "Income should be non-negative; got %s" % amount
  49         self.roth_income += amount
  50         self.total_roth_income += amount
  51
  52     def approximate_taxes(self,
  53                           standard_deduction,
  54                           ordinary_income_tax_brackets,
  55                           dividends_and_long_term_gains_brackets):
  56         assert standard_deduction >= 0, "Standard deduction should be non-negative"
  57         taxes_due = money(0)
  58
  59         # Handle ordinary income:
  60         ordinary_income = (self.ordinary_income +
  61                            self.short_term_gains -
  62                            standard_deduction)
  63         if ordinary_income < 0:
  64             ordinary_income = money(0)
  65         taxes_due += ordinary_income_tax_brackets.compute_taxes_for_income(
  66             ordinary_income)
  67
  68         # Handle dividends and long term gains:
  69         taxes_due += dividends_and_long_term_gains_brackets.compute_taxes_for_income(
  70             self.dividends_and_long_term_gains)
  71
  72         # Assume Roth money is still available tax free in the future.
  73         assert taxes_due >= 0, "Computed negative taxes?!"
  74         return taxes_due
  75
  76     def how_many_more_dollars_can_we_earn_without_changing_tax_rate(
  77             self,
  78             federal_ordinary_income_tax_brackets):
  79         """Return number of ordinary income dollars we can make without
  80            changing this year's tax rate.  Note: this may return None
  81            which actually indicates something more like 'infinite since
  82            you're already at the top tax bracket.'"""
  83         income = self.ordinary_income
  84         if income <= 1: income = 2
  85         b = federal_ordinary_income_tax_brackets.get_bracket_above_income(
  86             income)
  87         if b[0] is not None:
  88             delta = b[0] - income
  89             return delta
  90         return 0
  91
  92     def get_total_income(self):
  93         return (self.ordinary_income +
  94                 self.short_term_gains +
  95                 self.dividends_and_long_term_gains +
  96                 self.roth_income)
  97
  98     def dump_final_report(self):
  99         print "  Taxes and income:"
 100         print "    {:<50}: {:>14}".format("Total aggregate income",
 101                                           self.total_aggregate_income)
 102         print "    ...{:<47}: {:>14}".format("Ordinary income",
 103                                              self.total_ordinary_income)
 104         print "    ...{:<47}: {:>14}".format("Income from short term gains",
 105                                              self.total_short_term_gains)
 106         print "    ...{:<47}: {:>14}".format("Income from dividends and long term gains",
 107                                              self.total_dividends_and_long_term_gains)
 108         print "    ...{:<47}: {:>14}".format("Roth income",
 109                                              self.total_roth_income)
 110         print "    {:<50}: {:>14}".format("Total taxes paid",
 111                                           self.total_tax_bill)
 112         overall_tax_rate = float(self.total_tax_bill) / float(self.total_aggregate_income)
 113         print "    {:<50}: {:>14}".format("Effective tax rate",
 114                                           utils.format_rate(overall_tax_rate))