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Started By
Message
1031 Exchange Rules are terrible
Posted on 11/10/23 at 9:58 am
Posted on 11/10/23 at 9:58 am
This is nothing new...just bullshite. Under the "Property must be of equal or greater value" rule you must reinvest 100% of the sales price of the old property...not just the capital gain amount.
So for a simple example (not taking into account other fees/expenses etc) if you bought a property for
500K and sold it for
600K assuming a capital gain of
100K...In order to avoid capital gains tax on that 100K...you need to reinvest the full
600K...not just the 100K
Not going to even get into the 45/180 day timelines.
So for a simple example (not taking into account other fees/expenses etc) if you bought a property for
500K and sold it for
600K assuming a capital gain of
100K...In order to avoid capital gains tax on that 100K...you need to reinvest the full
600K...not just the 100K
Not going to even get into the 45/180 day timelines.
14
Posted on 11/10/23 at 10:02 am to sidewalkside
quote:
Not going to even get into the 45/180 day timelines.
I honestly wouldn't mind if they would allow me to hold my own fricking money and earn 5.1 in my Money Market.
Posted on 11/10/23 at 10:04 am to sidewalkside
the idea is to keep your capital in real estate, not on the sidelines, no? I don't see the issue...
Posted on 11/10/23 at 10:04 am to TheSadvocate
Exactly...f having to use AND PAY a qualified intermediary.
Posted on 11/10/23 at 10:05 am to sidewalkside
You're free to pay capital gains and put the proceeds where you see fit. What's the problem exactly?
Posted on 11/10/23 at 10:05 am to sidewalkside
quote:
This is nothing new...just bullshite.
Real estate bros are the whiniest motherfrickers on the planet. The tax code is insanely generous to real estate.
You are deferring gain on a sale and could theoretically do this forever, so shut the frick up.
Posted on 11/10/23 at 10:06 am to sidewalkside
Why would you not have to pay capital gains tax on a capital gain?
Posted on 11/10/23 at 10:06 am to ThisWayChad
quote:
the idea is to keep your capital in real estate,
The idea is the avoid paying taxes on your CAPITAL GAINS...why should you have to reinvest your original capital to avoid paying taxes only on gains? You should be able to only reinvest the actual gains
Posted on 11/10/23 at 10:08 am to jclem11
quote:
Real estate bros are the whiniest motherfrickers on the planet.
Don't blame me that you're a renter.
Posted on 11/10/23 at 10:08 am to sidewalkside
All .gov tax policies suck.
Posted on 11/10/23 at 10:10 am to jclem11
quote:
Real estate bros are the whiniest motherfrickers on the planet. The tax code is insanely generous to real estate.
Exactly. Sorry the loop on your loophole is not laying on the ground.
Posted on 11/10/23 at 10:12 am to sidewalkside
quote:
Don't blame me that you're a renter.
Ackshully I am not a renter. My point still stands.
Keep seething and coping though.
Posted on 11/10/23 at 10:12 am to sidewalkside
quote:
The idea is the avoid paying taxes on your CAPITAL GAINS...why should you have to reinvest your original capital to avoid paying taxes only on gains?
Bc that’s the rules you agreed to. If you don’t like it, don’t participate in the program and pay capital gains.
quote:
You should be able to only reinvest the actual gains
Not according to the rules of the program.
Posted on 11/10/23 at 10:14 am to jclem11
quote:
Keep seething
You seem to be the broke boi seething
Posted on 11/10/23 at 10:15 am to sidewalkside
quote:
The idea is the avoid paying taxes on your CAPITAL GAINS
Capital gains are the lowest and most preferential in history. Again, stop being a whiny entitled bitch and do your 1031 exchange.
You sound like a petulant child.
quote:
why should you have to reinvest your original capital to avoid paying taxes only on gains?
Because those are the frickin rules dude. You want to be granted a generous shield from taxation you will have to play the game and follow the rules.
quote:
You should be able to only reinvest the actual gains
Take it up with your Congressman.
You are getting to shield yourself from the lowest capital gains rates in history through a very generous code section and are still crying.
Noone here cares or feels bad for you. This thread is pathetic.
Posted on 11/10/23 at 10:19 am to ThisWayChad
It’s more about the freedom to do what you want with your own money. No where in our constitution would this law be acceptable. It’s criminal. If you make 200k on a house and downsize to have no house note, you should have that freedom. The money has been taxed multiple times already.
Posted on 11/10/23 at 10:20 am to jclem11
quote:
jclem11
and you say I'm the one seething...
Good luck coping with life broke boi
Posted on 11/10/23 at 10:23 am to Sneauxghost
You're not paying tax on the gain on a personal residence under the majority of cases, if that's what you're talking about.
Posted on 11/10/23 at 10:28 am to Smoke7024
That's not what I'm talking about.
Posted on 11/10/23 at 10:30 am to sidewalkside
I’ve done three 1031 exchanges and don’t really see the problem with any of this. It’s weird you have to pay someone to hold your money for you during the process, but it’s still a significant tax break.
As far as I’ve read over the past few years is that both parties have some interest in eliminating the tax break.
As far as I’ve read over the past few years is that both parties have some interest in eliminating the tax break.
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