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.