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Started By
Message
re: 1031 Exchange Rules are terrible
Posted on 11/10/23 at 10:34 am to Smoke7024
Posted on 11/10/23 at 10:34 am to Smoke7024
quote:
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.
A personal residence isn’t eligible for a 1031 exchange as far as I know. The rule I’ve been asked during real estate transactions is if the property has been a rental property for at least 5 years. That seems to be very important.
Posted on 11/10/23 at 10:36 am to Sneauxghost
quote:
It’s more about the freedom to do what you want with your own money.
Lol at bringing up "freedom" as if we really are free.
quote:
No where in our constitution would this law be acceptable.
Citation needed, Mr. Constitutional Scholar. Challenge the law in court if you don't like it.
Oh right, that would take actual work and not just whining on the OT.
quote:
If you make 200k on a house and downsize to have no house note, you should have that freedom.
If it is a primary residence there is an exclusion of $250K for single or $500K for married folks. You are not taxed in your example.
Look up IRC 121 for more info.
quote:
The money has been taxed multiple times already.
Wrong. This is a different transaction and thus a potentially taxable event.
Posted on 11/10/23 at 10:42 am to Motownsix
You’re still paying a fee to defer taxes, not avoid them. The fee is for the convenience/ability to grow a business faster and truthfully there’s very little work involved for the amount they charge for the 1031. Definitely not a perfect system but I understand a charge.
Posted on 11/10/23 at 10:50 am to sidewalkside
I know. I was responding to the guy that acted like the gain on the sale of his home was taxed.
Posted on 11/10/23 at 10:54 am to sidewalkside
Just pay the taxes and quit your bitching if you don't like it. I'm amazed they even allow it anymore these days. Glad they do but amazed they haven't taken it away.
Posted on 11/10/23 at 10:56 am to Smoke7024
quote:
I was responding to the guy that acted like the gain on the sale of his home was taxed.
Ah my bad
Posted on 11/10/23 at 10:57 am to Billy Blanks
quote:
Just pay the taxes and quit your bitching
Ole Billy Boy here loves paying taxes I guess...or let me guess...you're one of those people that get an actual tax refund and don't owe taxes at the end of the year...
Posted on 11/10/23 at 10:58 am to sidewalkside
i don't mind the proportional reinvestment rule ("boot" rule). What sucks is the timing of it all. A reverse 1031 is easier in a market with limited supply. But that has its own issues. The QI requirement is also a dumb fiction. It's ALMOST as if they want to make it as difficult as possible for the common taxpayer. Almost. See other examples: the entire tax code.
Also, if they get rid of stepped-up basis at death, this is all superscrewed.
Also, if they get rid of stepped-up basis at death, this is all superscrewed.
This post was edited on 11/10/23 at 7:14 pm
Posted on 11/10/23 at 11:02 am to sidewalkside
quote:
you're one of those people that get an actual tax refund and don't owe taxes at the end of the year...
These are not mutually exclusive. LMAO.
Most people are net taxpayers AND get a tax refund.
All paying when you file means is that you did not pay in enough through the year via withholding or estimated tax payments.
This comment is not the own you think it is Mr. gigabrained real estate bro.
The relevant question is what is one's total tax liability.
Posted on 11/10/23 at 11:05 am to sidewalkside
The idea of capital gains taxes in general is a load of BS but this is as good as it gets and may not last much longer
Posted on 11/10/23 at 11:07 am to sidewalkside
1031 exchanges are great and I can’t believe the loophole still exists. Argent brokered a deal for me and my family on a mineral interest sale and they held the money for my 1031 for free. They made the money on the interest they made while holding it. It saved me an extreme amount of money by investing the money back into real estate. And I plan to keep those investments and pass them on to my children when I die. The government will never see a penny of cap gains tax from me on this sale.
Posted on 11/10/23 at 11:07 am to jclem11
quote:
These are not mutually exclusive. LMAO.
these are the definition of mutually exclusive...you either owe taxes or do not owe taxes. There is no world where you get a tax refund AND pay a tax debt. Just like pregnancy...you're either pregnant or not...there is no kinda pregnant
Looks who's
quote:
Mr. gigabrained
Posted on 11/10/23 at 11:13 am to sidewalkside
quote:
these are the definition of mutually exclusive
No they are not, dude. Here's a simple example for you to illustrate:
Joe Six Pack, a single tax payer, works at the factory and makes $60,000 in taxable wages for the year and has $8,000 withheld on his wages.
His total income tax liability for the year is $5,466. He is due a tax refund of $2,534 based on his income and withholding for the year.
Joe Six Pack is both a net taxpayer and received a refund for the tax year in this example.
So kindly shut the frick on the subject of taxation because you do not know what the hell you are talking about.
Posted on 11/10/23 at 11:14 am to Sneauxghost
quote:
No where in our constitution would this law be acceptable. It’s criminal.
Lol what? Art. I Section 8 and the 16th Amendement are incredibly broad. You're clueless
Posted on 11/10/23 at 11:15 am to jclem11
quote:
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.
I know. Would be great to be able to do the same in the stock market.
Posted on 11/10/23 at 11:17 am to jclem11
quote:
Here's a simple example for you to illustrate:
Thank you for proving I was right
Like I said...you either get a tax refund or you don't. There is no world where you get both. And btw "Keep seething"
Posted on 11/10/23 at 11:19 am to sidewalkside
quote:
Just pay the taxes and quit your bitching
Ole Billy Boy here loves paying taxes I guess...or let me guess...you're one of those people that get an actual tax refund and don't owe taxes at the end of the year...
No. I hate paying taxes. Everyone does.
They give you an option if you want to defer them, which is the 1031. If you don't like that option, just pay the taxes.
quote:
you're one of those people that get an actual tax refund and don't owe taxes at the end of the year...
I pay a lot in taxes. The point of a tax filing is to settle up with the IRS. It appears you don't realize that. A refund means you paid too much and they are...wait for...refunding it. If you didn't pay enough, you'd send a check.
Posted on 11/10/23 at 11:20 am to sidewalkside
quote:
sidewalkside
Chicken change this moron's handle to Dunning-Kruger.
Posted on 11/10/23 at 11:21 am to sidewalkside
1031 and other tax codes related to real estate are the primary drivers behind the housing prices we see today.
Take Dallas for example. If someone moves from Cali to DFW and sells their overpriced home in Cali they have to buy and equally or more over priced one here. They end up overbidding on shite or buying a $1mm homes and tearing it down to build something bigger and better.
Homes keep getting larger and larger while families get smaller and smaller.
Take Dallas for example. If someone moves from Cali to DFW and sells their overpriced home in Cali they have to buy and equally or more over priced one here. They end up overbidding on shite or buying a $1mm homes and tearing it down to build something bigger and better.
Homes keep getting larger and larger while families get smaller and smaller.
Posted on 11/10/23 at 11:22 am to Billy Blanks
quote:
I pay a lot in taxes. The point of a tax filing is to settle up with the IRS. It appears you don't realize that. A refund means you paid too much and they are...wait for...refunding it. If you didn't pay enough, you'd send a check.
Tell me you're a W-2 employee without telling me you're a W-2 employee
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