re: 1031 Exchange Rules are terrible

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.

I know. I was responding to the guy that acted like the gain on the sale of his home was taxed.

quote:

---

I was responding to the guy that acted like the gain on the sale of his home was taxed.

---

Ah my bad

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.

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

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.

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.

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.

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.