Kavanaugh's finances

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think he's more the norm than people would like to admit in DC. $300K income but house-poor with a $1.2 MM home in Chevy Chase and private school tuition. His parents were typical white-collar in CC as well. He likely had student loans that were paid off, so he didn't start saving for retirement until later (thus the $500K TSP). He has wealthy friends and a slight desire to keep up with the Joneses (see said house and the expensive baseball tickets). I think he's pretty typical.

Are you kidding? His father is a multi millionaire.

https://prabook.com/web/everett.kavanaugh/1365780

He grew up in my neighborhood at around the same time I did (I did not know him). It was a normal neighborhood of small lots and small houses. Some have been renovated since then but relatively few compared to other parts of Bethesda because they lots are so small. In those days B-CC was not very highly regarded so it was not at all unusual for kids in the neighborhood to go to private school (I did too). Anyway, I'm sure his parents are comfortable, but someone who grew up where I did is NOT a trust fund kid, or likely to have parents paying credit card bills in his 50s.

Kavanaugh's father was paid $13 million in 2004, the year he retired from his job as the head of the Cosmetics, Toiletry and Fragrance Association. His parents are loaded, he's an only child, and they can easily afford to help him out financially. My guess is that Mommy and Daddy bailed out little Brett.

https://www.nytimes.com/2018/07/14/us/politics/judge-brett-kavanaugh.html

That may be the case but there is a limit to how much you can accept as gifts tax free.

Either way do we want a judge who can't manage his own finances and needs to be bailed out in his 50's by his parents?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Kavanaugh carried $200,000 in credit card debt for a decade, until his debts magically vanished in 2017. That debt, not including mortgage, tuition, country club fees, sometimes exceeded his annual household income. Its enough to disqualify and applicant for the FBI or CIA.

Sheesh I wish people would stop with this $200k in debt crap. Let me explain it again...the financial disclosure form has check boxes on it, with ranges for the amount owed. He listed four accounts - three credit cards and a home equity line of credit. For each of the accounts, he checked the box that indicated that the amount of indebtedness was "$15,000 to $50,000." The media keeps reporting that he disclosed "between $60k and $200k" in debt. There is no way to know from the disclosure whether in fact he owed a total of $60k or a total of $200k, or something in-between. The forms also require you to indicate based on indebtedness "at any time" during the reporting period. Take a look at 12 months of your own credit card activity? What was the most you ever owed at one time? That's the box you check. I make about the same as Kavanaugh, and I can easily see how my accounts could add up to similar amounts, even though I pay every account in full at the end of every month. Even credit card accounts paid in full are still reported at their high water mark.

In any event, your statement that he "carried $200k in credit card debt for a decade" is untrue.

We have a similar HHI and have never come close to having 60K in credit card debt. And he had large amounts year after year after year.

Also his explanation that he somehow got into this debt buying Nationals tickets is completely cockamamie.

Did you even read what I posted above? Have you ever charged more than $10,000 in one month (like paying for a cruise or plane tickets or something like that)and then paid it off? That's reportable. Did you ever pay for a remodeling job using a heloc, and then pay it off from liquidated investments? That's reportable. And yes, have you ever charged tickets to an event like a concert or a banquet (or a sporting event!!!), and your friends paid you back? That's reportable!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is a long way of saying that he's bad with money.

Is that a good quality in a Supreme Court Justice? Or a bad one? It makes him relatable, that's true. More importantly, does it make him relate to the common man?

I can relate to the Kavanaugh financial situation. We are 2 fed employees (attorneys) who somehow chose to live in Chevy Chase, where the houses are old, but yet expensive (both to buy and maintain). DH and I both had a nice standard of living growing up, and so we seem to live a bit beyond our two-fed means. We have carried credit card debt for a while. We admit that it's idiotic, but we still do it.

We get annual gift money from our parents at an amount just below the gift limit. We figure we might get a little inheritance in the future. We both work full-time at our jobs and get good reviews at work. In a worst case scenario, our parents could bail us out in a financial pinch. (We haven't needed to ask for that.) So we probably live a little too close to the edge financially, just because we know that there's a safety net there in the form of our parents.

We're honest people, and there's nothing criminal or unethical about having credit card debt. Yes, it's idiotic to pay those high interest rates, but it is not criminal or unethical.

We're similar. We're bad at money, but we have secure fed jobs and parents who help out a bit. We admit it. Kavanaugh does not admit it.

Goodness. How many of you are still being bailed out by your parents? Stop now

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think he's more the norm than people would like to admit in DC. $300K income but house-poor with a $1.2 MM home in Chevy Chase and private school tuition. His parents were typical white-collar in CC as well. He likely had student loans that were paid off, so he didn't start saving for retirement until later (thus the $500K TSP). He has wealthy friends and a slight desire to keep up with the Joneses (see said house and the expensive baseball tickets). I think he's pretty typical.

Are you kidding? His father is a multi millionaire.

https://prabook.com/web/everett.kavanaugh/1365780

He grew up in my neighborhood at around the same time I did (I did not know him). It was a normal neighborhood of small lots and small houses. Some have been renovated since then but relatively few compared to other parts of Bethesda because they lots are so small. In those days B-CC was not very highly regarded so it was not at all unusual for kids in the neighborhood to go to private school (I did too). Anyway, I'm sure his parents are comfortable, but someone who grew up where I did is NOT a trust fund kid, or likely to have parents paying credit card bills in his 50s.

Kavanaugh's father was paid $13 million in 2004, the year he retired from his job as the head of the Cosmetics, Toiletry and Fragrance Association. His parents are loaded, he's an only child, and they can easily afford to help him out financially. My guess is that Mommy and Daddy bailed out little Brett.

https://www.nytimes.com/2018/07/14/us/politics/judge-brett-kavanaugh.html

That may be the case but there is a limit to how much you can accept as gifts tax free.

Either way do we want a judge who can't manage his own finances and needs to be bailed out in his 50's by his parents?

This is incorrect. Why do so many average Americans think this?!?! The only limit is for estate taxes paid by the ESTATE - not the recipient of the gift. There is NO limit as to how much money someone can receive tax free.

[Anonymous]

Anonymous wrote:A 53 yr old man with a Yale degree who is still depending on his parents .

Plenty of people with family money pass down gifts (up to the gift limit) each year to minimize taxes. It's not depending on your parents. It's one generation creating a cushion for the next generation. Happens a lot, and is completely legal.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Kavanaugh carried $200,000 in credit card debt for a decade, until his debts magically vanished in 2017. That debt, not including mortgage, tuition, country club fees, sometimes exceeded his annual household income. Its enough to disqualify and applicant for the FBI or CIA.

Sheesh I wish people would stop with this $200k in debt crap. Let me explain it again...the financial disclosure form has check boxes on it, with ranges for the amount owed. He listed four accounts - three credit cards and a home equity line of credit. For each of the accounts, he checked the box that indicated that the amount of indebtedness was "$15,000 to $50,000." The media keeps reporting that he disclosed "between $60k and $200k" in debt. There is no way to know from the disclosure whether in fact he owed a total of $60k or a total of $200k, or something in-between. The forms also require you to indicate based on indebtedness "at any time" during the reporting period. Take a look at 12 months of your own credit card activity? What was the most you ever owed at one time? That's the box you check. I make about the same as Kavanaugh, and I can easily see how my accounts could add up to similar amounts, even though I pay every account in full at the end of every month. Even credit card accounts paid in full are still reported at their high water mark.

In any event, your statement that he "carried $200k in credit card debt for a decade" is untrue.

We have a similar HHI and have never come close to having 60K in credit card debt. And he had large amounts year after year after year.

Also his explanation that he somehow got into this debt buying Nationals tickets is completely cockamamie.

Did you even read what I posted above? Have you ever charged more than $10,000 in one month (like paying for a cruise or plane tickets or something like that)and then paid it off? That's reportable. Did you ever pay for a remodeling job using a heloc, and then pay it off from liquidated investments? That's reportable. And yes, have you ever charged tickets to an event like a concert or a banquet (or a sporting event!!!), and your friends paid you back? That's reportable!

from fed disclosure:
"The reporting rules for revolving charge accounts, such as credit card balances, are different from all other liabilities. You do not have to report credit card debt if you paid off the debt before the close of the reporting period. For a Nominee, New Entrant or Candidate report, the reporting period ends on the date on which you file the report."

that says you do NOT post cc debt if (like you) you're paying it off each month.

sure, maybe every single year his filing date fell before every cc's payment deadline came due, I suppose. but your premise that you have to report highest balance even if you paid it off before incurring interest is incorrect in a couple different ways.

https://www2.oge.gov/Web/278eGuide.nsf/Content/FAQs~FAQs:+Liabilities

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think he's more the norm than people would like to admit in DC. $300K income but house-poor with a $1.2 MM home in Chevy Chase and private school tuition. His parents were typical white-collar in CC as well. He likely had student loans that were paid off, so he didn't start saving for retirement until later (thus the $500K TSP). He has wealthy friends and a slight desire to keep up with the Joneses (see said house and the expensive baseball tickets). I think he's pretty typical.

Are you kidding? His father is a multi millionaire.

https://prabook.com/web/everett.kavanaugh/1365780

He grew up in my neighborhood at around the same time I did (I did not know him). It was a normal neighborhood of small lots and small houses. Some have been renovated since then but relatively few compared to other parts of Bethesda because they lots are so small. In those days B-CC was not very highly regarded so it was not at all unusual for kids in the neighborhood to go to private school (I did too). Anyway, I'm sure his parents are comfortable, but someone who grew up where I did is NOT a trust fund kid, or likely to have parents paying credit card bills in his 50s.

Kavanaugh's father was paid $13 million in 2004, the year he retired from his job as the head of the Cosmetics, Toiletry and Fragrance Association. His parents are loaded, he's an only child, and they can easily afford to help him out financially. My guess is that Mommy and Daddy bailed out little Brett.

https://www.nytimes.com/2018/07/14/us/politics/judge-brett-kavanaugh.html

That may be the case but there is a limit to how much you can accept as gifts tax free.

Either way do we want a judge who can't manage his own finances and needs to be bailed out in his 50's by his parents?

This is incorrect. Why do so many average Americans think this?!?! The only limit is for estate taxes paid by the ESTATE - not the recipient of the gift. There is NO limit as to how much money someone can receive tax free.

kinda. if you exceed the amt ($15k in 2018), it has to be deducted from the estate's exclusion amount.

eg. Bob is worth $50m. he "gifts" his son $10m - which is obviously way over the $15k yearly limit. that's allowed, yes, but must be subtracted from the total allowed exclusion amount from the "estate" Bob leaves behind. (depends on the year, 2018 = $11.2m before estate pays fed tax)

*important to distinguish btw Bob's worth (i.e., while living) vs an "estate" (assets previously owned by now-dead-Bob)

yes, dead people have to file taxes for the year they die but that's just the usual "income/interest" regular accounting 1040 for that particular year. one way to think about this is: when Bob dies, HE isn't worth anything (bc he's dead and dead people can't "own" things legally) BUT his "estate" has $40m.

So, say Bob dies in 2018 (right after he gifts $10m to his son) when he was worth $40m ($50m - $10m).

The exclusion amt in 2018 is $11.2m . BUT Bob's "estate" already used up $10m of that $11.2 ... so only $1.2m is allowed to be excluded.

Bob's estate would be liable for federal tax on $38.8m.

(note: this math isn't quite right - I left out the first $15k that would be excluded from the $10m substraction. but that makes the math unnecessarily messy and is basically a rounding error.)

this all completely ignores trusts, btw.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think he's more the norm than people would like to admit in DC. $300K income but house-poor with a $1.2 MM home in Chevy Chase and private school tuition. His parents were typical white-collar in CC as well. He likely had student loans that were paid off, so he didn't start saving for retirement until later (thus the $500K TSP). He has wealthy friends and a slight desire to keep up with the Joneses (see said house and the expensive baseball tickets). I think he's pretty typical.

Are you kidding? His father is a multi millionaire.

https://prabook.com/web/everett.kavanaugh/1365780

He grew up in my neighborhood at around the same time I did (I did not know him). It was a normal neighborhood of small lots and small houses. Some have been renovated since then but relatively few compared to other parts of Bethesda because they lots are so small. In those days B-CC was not very highly regarded so it was not at all unusual for kids in the neighborhood to go to private school (I did too). Anyway, I'm sure his parents are comfortable, but someone who grew up where I did is NOT a trust fund kid, or likely to have parents paying credit card bills in his 50s.

Kavanaugh's father was paid $13 million in 2004, the year he retired from his job as the head of the Cosmetics, Toiletry and Fragrance Association. His parents are loaded, he's an only child, and they can easily afford to help him out financially. My guess is that Mommy and Daddy bailed out little Brett.

https://www.nytimes.com/2018/07/14/us/politics/judge-brett-kavanaugh.html

That may be the case but there is a limit to how much you can accept as gifts tax free.

Either way do we want a judge who can't manage his own finances and needs to be bailed out in his 50's by his parents?

This is incorrect. Why do so many average Americans think this?!?! The only limit is for estate taxes paid by the ESTATE - not the recipient of the gift. There is NO limit as to how much money someone can receive tax free.

kinda. if you exceed the amt ($15k in 2018), it has to be deducted from the estate's exclusion amount.

eg. Bob is worth $50m. he "gifts" his son $10m - which is obviously way over the $15k yearly limit. that's allowed, yes, but must be subtracted from the total allowed exclusion amount from the "estate" Bob leaves behind. (depends on the year, 2018 = $11.2m before estate pays fed tax)

*important to distinguish btw Bob's worth (i.e., while living) vs an "estate" (assets previously owned by now-dead-Bob)

yes, dead people have to file taxes for the year they die but that's just the usual "income/interest" regular accounting 1040 for that particular year. one way to think about this is: when Bob dies, HE isn't worth anything (bc he's dead and dead people can't "own" things legally) BUT his "estate" has $40m.

So, say Bob dies in 2018 (right after he gifts $10m to his son) when he was worth $40m ($50m - $10m).

The exclusion amt in 2018 is $11.2m . BUT Bob's "estate" already used up $10m of that $11.2 ... so only $1.2m is allowed to be excluded.

Bob's estate would be liable for federal tax on $38.8m.

(note: this math isn't quite right - I left out the first $15k that would be excluded from the $10m substraction. but that makes the math unnecessarily messy and is basically a rounding error.)

this all completely ignores trusts, btw.

Right that’s consistent with what I said. The only limit is for the estate. Not the recipient. Anything over the gift amount is subtracted from the estate’s exclusion.

[Anonymous]

Are his wife's parents well off too or did she marry up?

[Anonymous]

It's been interesting reading this thread now that we know what kind of person Brett Kavanaugh really is: outrageously, almost dangerously entitled (truly believes he "deserves" this SCJ seat) and suffering from delusions of grandeur.

The baseball tickets make sense in this context too. He probably brought the various political people he was sucking up to, to games over the years.

[Anonymous]

A liar and a crook. No wonder Trump loves him.