$1mil income is the "average man"? "Low numbers"? GTFO. |
You’re welcome to move into your rental for two years to take advantage of the current tax break. I have four rentals and that’s what I plan to do. Also I will have decades of profit from the tenants paying rent, so I would not consider myself “screwed” at any point. |
+1 Where would the GOP be without all of these would be millionaires who are just suffering temporary setbacks. |
I had thought having a lower-tax rate on capital gains was to provide an incentive for capital investment. The folks that can make meaningful capital investments are also the people that make over $1M a year. This proposal undermines the rationale for a lower tax rate on capital gains. May as well just tax capital gains at ordinary income rates. Alternatively, do a better job of characterizing carried interest as compensation income, rather than distributive share of capital gains. |
this will make such a dent in the $34.8T debt
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One of the big features of Saint Ronnie's tax reform in 1986 was the equalization of income tax and capital gains tax rates. I do agree carryover basis is unworkable. They did this for one year in 2010 with the (temporary) repeal of the estate tax and it caused a lot of ... weird things. Like this: https://lawprofessors.typepad.com/trusts_estates_prof/2011/01/billionaire-dies-48-hours-before-estate-tax-is-reinstated.html Which wasn't suspicious at all. |
Totally agree both of things are warranted but given our political system they don’t seem to be feasible right now (I doubt this proposal will make it either but at least he’s trying something new) |
There's already a $500,000 exclusion for capital gains taxes (for married couples) on housing. Granted, that was created in 1997 so probably should be indexed for inflation. But it's a fallacy to say people can't downsize because they might have to pay capital gains taxes. The real issue is they can't find the kind of housing stock they want to live in. |
Are you referring to the immigration policy that was bipartisan legislation in Congress that Republicans decided to kill because Donald Trump wanted an election issue rather than a solution to the problem? That policy? I just want to be clear. Because when you say "if you can call it that" my take is that "it" is the legislation that Trump ordered killed because he wanted to run on the issue. Just asking. Please clarify. |
No because the people who make most of their money on cap gains pay about 15-20%. Receiving income vs cap gain is a delta of 20% on taxes. This is government picking winnings and losers based on an arbitrary terminology which distorts the market. All income/revenues should be treated as income. |
Moving into your rental doesn’t allow you to avoid paying taxes on the sale entirely. Depreciation recapture still needs to be paid. If your CPA is telling you otherwise you need to hire someone that actually understands taxes. |
To be clear, the incoherent policy was to cancel numerous executive orders and policies put in place by Trump (including many before COVID such as remain in Mexico) and then do nothing and just watch the swarm of migrants. It was clearly a repudiation of Trump’s approach and many of us thought he would have a plan of his own to address these things. But apparently he didn’t and doesn’t. His only policy objective was to be anti- anything Trump did. The bill you speak of came after 3 years of open borders during which his administration refused to even acknowledge the issue. He soured any Republican support for things like DACA by just letting anyone and everyone in. So your cutesy effort to reframe this as a Bipartisan fail is too cute by half. And all the polls show it. Was that clear enough? |
That one is even dumber. You shouldn't be able to tax me on something that is "unrealized". It could be a loss tomorrow, so do I get a refund then? |
You don’t understand how taxes work if you are ignoring depreciation recapture. Selling a property worth a million that you bought at 500k 20-30 years ago can easily push your taxable income close to 1M. The depreciation recapture will likely be in the 200-400k range depending on the original value of the land. So the taxable income will be 700k-900k including recapture on a property that did not gain value after adjusting for inflation. |
Biden is awful. $1M is NOT a lot of money sorry. Maybe if you only will ever earn $75k/yr it is but to most of us who have a couple degrees or own a successful mid size business - $1M is not anywhere close to gobs of money. In the very near future, given how general inflation is and how food prices soar, $1M will be more the hope that UMC want to target as HHI. So this whole raising this much in any tax rate is obscene.
He's going for votes really. He's been on a tear between taking away student debt to everything on the legislation front, trying to win votes from Trumps market - the lower/middle class. This is a show and something he can brag about in trying to equalize everyone. For UMC folks, this is not a good sell. I think he figures that the hatred for Trump already established in educated populations overrides any votes he loses in that market. I almost hope he loses even though I don't want Trump either. I'm very disappointed in Biden. I would have preferred that he focus on other priorities than things like this which really doesn't impact the entire country very concretely. |