Biden Eyeing Tax Rate as High as 43.4%

78

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So assets don't appreciate over a million dollars?:crazy:

You cited 20% like it was a form of double taxation, conveniently forgetting the fact that capital gains have zero to do with the capital deployed to purchase RE. That’s what I said.
 

Concrete Helmet

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You cited 20% like it was a form of double taxation, conveniently forgetting the fact that capital gains have zero to do with the capital deployed to purchase RE. That’s what I said.
20% was taken BEFORE purchase of asset....it was paid for with AFTER tax dollars...then taxed every year you own it....then they don't even spit on the tip when you sell it.

If you really want to see stimulus get rid of capital gains tax altogether...
 

78

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20% was taken BEFORE purchase of asset....it was paid for with AFTER tax dollars...then taxed every year you own it....then they don't even spit on the tip when you sell it.

If you really want to see stimulus get rid of capital gains tax altogether...

So you you just woke up to the idea that we all have to pay tax on income? It’s been that way for a long time.
 

Concrete Helmet

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So you you just woke up to the idea that we all have to pay tax on income? It’s been that way for a long time.
No sh!t sherlock but if I invest after tax income on an asset that is also being taxed every year I own it then there should be consideration of that and a MUCH lower tax rate(if any) when I sell.....you really seem to like taxes for someone who is probably pretty close to retiring. Wouldn't you rather spend it on something else or give it to the kids?
 

78

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No sh!t sherlock but if I invest after tax income on an asset that is also being taxed every year I own it then there should be consideration of that and a MUCH lower tax rate(if any) when I sell.....you really seem to like taxes for someone who is probably pretty close to retiring. Wouldn't you rather spend it on something else or give it to the kids?

You do realize that ordinary income and capital gains are two different things, right? You get taxed on the rental income, but the capital gains are in deferral (unrealized) until you sell.

So what are you complaining about?
 

Concrete Helmet

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So what are you complaining about?
The capital gains when selling....since I used AFTER TAX dollars to purchase and paid taxes while holding it...it's not that difficult to see what the crooked ass government is doing is it? It's called stealing wealth from people who have accumulated assets. Theft plain and simple. Hell 20% was too much.
 

78

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RE is the most tax efficient investment on the planet earth. You can defer tax on the income and the gains, then roll it over endlessly into other income producing property via 1031. At your death, the whole kit and caboodle gets a step up to FMV.

Voila. No tax. Ever.

But Crete bitches anyway.
 

Concrete Helmet

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RE is the most tax efficient investment on the planet earth. You can defer tax on the income and the gains, then roll it over endlessly into other income producing property via 1031. At your death, the whole kit and caboodle gets a step up to FMV.
Do you know how a 1031 works? I don't want to own property other than my primary forever. I want my money..
 

78

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Do you know how a 1031 works? I don't want to own property other than my primary forever. I want my money..

I’ve done about a dozen 1031s using tenant-in-common structures. It’s tax deferral in perpetuity until you die, then the property is completely absolved of taxes through the step up.

Hence why in my opening post I noted the concern with Biden ending the step up.
 

Concrete Helmet

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I’ve done about a dozen 1031s using tenant-in-common structures. It’s tax deferral in perpetuity until you die, then the property is completely absolved of taxes through the step up.

Hence why in my opening post I noted the concern with Biden ending the step up.
You must have missed the part where I said I want my money...not bits and pieces or playing shell games to hide from taxes that I shouldn't have to....Just like the National Bank of China....One Lump Sum...
 

BMF

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Concrete Helmet

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As much as I love 78 I think his vaccine shot came from the batch where they found the lead based paint chips in the in the mixer... it's like he's happy about paying more taxes :headslap:
 

NavetG8r

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I wondered what the heck happened. Ironically, it was only 2 days after I carried a fair sized check to my broker. Well, fair sized for a poor man. I'm sure some of you would scoff at my piddly check. And I was all excited over our 24% gain on that account the past year. Looks like we're going to need to hope it keeps going at that rate so we can only lose 20% or so due to taxes. Thanks Joey!:headslap:
 

78

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You must have missed the part where I said I want my money...not bits and pieces or playing shell games to hide from taxes that I shouldn't have to....Just like the National Bank of China....One Lump Sum...

You asked if I’d done a 1031, not whether I liked to pay taxes. I’m like anyone else. I don’t LIKE to pay taxes but I do realize it’s necessary if I want a society that doesn’t live out of grass huts.

Let me go back to my original post. I think the gains hike proposed by Biden won’t make it through Congress. I think it MAY make it through at 28% if at all. I’m more concerned with the end of the step up.

RE has innumerable tax advantages, more than any asset class. You don’t want to utilize them? That’s your own silly fault.
 

Concrete Helmet

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I want a society that doesn’t live out of grass huts.
What are we paying income tax, property tax and sales tax(year after year) for then...
We've already seen with the last adm. that lower taxes created MORE overall tax revenue....This adm. is just finding more ways to legalize strong armed robbery.
 

Detroitgator

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You do realize that ordinary income and capital gains are two different things, right? You get taxed on the rental income, but the capital gains are in deferral (unrealized) until you sell.

So what are you complaining about?
Oh, they floated an idea for that this year too! ;)
 

78

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What are we paying income tax, property tax and sales tax(year after year) for then...
We've already seen with the last adm. that lower taxes created MORE overall tax revenue....This adm. is just finding more ways to legalize strong armed robbery.

There were a pair of studies done, by the CBO and Heritage Foundation, on the Bush tax cuts that came to startling different conclusions. The CBO estimated that it added $1.5T to the national debt from 2002-2011. The Heritage story predicted the cuts would lead to elimination of the national debt by 2010. That obviously did not happen.

Let’s be honest. They mainly benefit the wealthy, who don’t turn right around and pump the savings back into the economy.

Big RE transactions were meant to be sheltered through mechanisms I described, deferral of income through annual depreciation write offs, tax-deferred exchanges when the usefulness of the property has expired and the step up in basis at death.

You want your cake and to eat it, too. RE comes close to it but not all the way.

Here’s an idea, Crete. Move into the property for two years, make it your primary, and shelter up to 500k of gains through the Section 121 exclusion.
 

Concrete Helmet

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Let’s be honest. They mainly benefit the wealthy, who don’t turn right around and pump the savings back into the economy.
So the wealthy don't buy 3 or 4 more cars than they really need, boats , vaction houses, travel and go out to eat and shop. Let me explain something the government won't tell you....the spending and living habits of the top 15-20 percent of the county have more effect on the economy than the taxes that the other 80 percent pay....

Here’s an idea, Crete. Move into the property for two years, make it your primary, and shelter up to 500k of gains through the Section 121 exclusion.
Kinda hard to live in 6 places at once and I'm pretty sure commercial buildings have restrictions against occupancy....But rest assured one of those grass huts you mentioned earlier will suit me fine once I'm cashed out in the Caymans..
 

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