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re: Biden wants to kill 1031 Exchanges (read this. it's important)
Posted on 7/22/20 at 5:09 pm to stickly
Posted on 7/22/20 at 5:09 pm to stickly
That's not all he wants to kill.... Bolshevik bidens got a fricking list of items he wants to do that hurts everybody not tied in one way or another to the government dole.
frick that senile savage.
frick that senile savage.
0
Posted on 7/22/20 at 5:09 pm to LSUFanHouston
quote:
1031 is meant to be a temporary deferral of tax, until you cash out. It is not meant to avoid tax forever.
But, when you 1031 in a chain, and then die, all of that built up, unpaid tax obligation is wiped out. That's just unfair, in regards to how taxes should work in this country.
I agree that that is a loophole that could/should be looked at. Just don't penalize people that have pursued commercial real estate as a lifetime investment to provide for their family and fund their retirement. Biden's plan is like a bomb.
This post was edited on 7/22/20 at 5:16 pm
Posted on 7/22/20 at 5:11 pm to LSUFanHouston
quote:
Section 121 guides this, not Section 1031.
I still can't get over the upvote/downvote ratio on his post.
Posted on 7/22/20 at 5:14 pm to Jorts R Us
quote:
I still can't get over the upvote/downvote ratio on his post.
What's the confusing part? Seems like most people here like capitalism.
Posted on 7/22/20 at 5:15 pm to stickly
quote:
I agree that that is a loophole that could/should be looked at. Just don't penalize people that have pursued commercial real estate as a lifetime investment to provide for their family and fund their retirement.
In order for this to "fund their retirement", it either needs to cash-flow positively (and a lot), or, you need to sell it (which means the tax bill becomes due).
I have a lot of clients that are retired that own rental real estate (commercial and residential) but very few of them are cash flowing enough off of it to support themselves in retirement. If you own a bunch of commercial or a whole bunch of residential, debt-free, then yes, absolutely, but that's pretty uncommon, even among "the rich."
But taxing realized gains that don't result in cash, is incredibly stupid.
Posted on 7/22/20 at 5:15 pm to stickly
quote:
What's the confusing part? Seems like most people here like capitalism.
Um, the false info
Posted on 7/22/20 at 5:16 pm to nugget
quote:
Or does the property, of which you can’t depreciate though taxes, appreciate?
Yikes. Bad take my dude. Rental property is allowed a depreciation deduction on the actual structure.
Might want to brush up on the tax code before you start shaming others.
Posted on 7/22/20 at 5:16 pm to stickly
quote:
What's the confusing part? Seems like most people here like capitalism.
Sure. But the post is factually incorrect.
Which is about right for the PT. They believe what they want to believe to be true, not what is actually true.
Posted on 7/22/20 at 5:18 pm to LSUFanHouston
quote:
Sure. But the post is factually incorrect.
Explain how it is incorrect. I stated clearly that it was a simplified view of the problem. It does not mean that it fits every situation. How is it fundamentally wrong?
Posted on 7/22/20 at 5:19 pm to stickly
quote:
Explain how it is incorrect. I stated clearly that it was a simplified view of the problem. It does not mean that it fits every situation. How is it fundamentally wrong?
Are you following the quotes at all? It's not even your post we are discussing.
The example provided would be governed by 121 and would not qualify as a 1031 exchange.
This post was edited on 7/22/20 at 5:20 pm
Posted on 7/22/20 at 5:20 pm to Mud_Till_May
quote:
It’s the same way with stocks. You only get taxes if you sell and keep the money.
Why is that wrong?
Posted on 7/22/20 at 5:22 pm to Jorts R Us
quote:
Are you following the quotes at all?
LOL. No. I'm just pissed about the short sided assault on 1031s. My bad. I'm just looking for a fight at this point. Apologies.
Posted on 7/22/20 at 5:22 pm to stickly
quote:
Explain how it is incorrect. I stated clearly that it was a simplified view of the problem. It does not mean that it fits every situation. How is it fundamentally wrong?
Claiming that changes to 1031 would impact 121.
(I don't think you, personally, said that, I think it was other posters).
Posted on 7/22/20 at 5:24 pm to LSUFanHouston
quote:
Claiming that changes to 1031 would impact 121.
(I don't think you, personally, said that, I think it was other posters).
Yup. Sorry about that response. I didn't view the response and just jumped in to fight lol. My bad.
Posted on 7/22/20 at 5:27 pm to stickly
quote:
I'm just pissed about the short sided assault on 1031s. My bad. I'm just looking for a fight at this point. Apologies.
It's a terrible, awful, no-good idea. It impacts a small percentage of Americans, but that doesn't make it any better. It's still terrible. Hell, it might even be "turrible"!!
But some posters are implying this either will directly impact the home-sale exclusion (121), or, somehow will lead to that. And that's insanely disingenuous. And also not helpful.
We need to keep our eyes on the ball and stay focused. Otherwise, we end up with, the home-sale exclusion gets to stay as a compromise, when it was never on the table to begin with, and the Dems get to kill 1031.
The GOP always gets in trouble for shite like this.
Posted on 7/22/20 at 5:34 pm to LSUFanHouston
I have a number of clients that do so...
Posted on 7/22/20 at 5:35 pm to LSUFanHouston
quote:
A lot of people don't know this, but the REPUBLICANS killed like-kind exchange for machinery and vehicles in the TCJA. So some clients got nasty surprises when they got hit with taxes on trade-ins, even though they got no cash. That REPUBLICAN idea probably sparked Biden's imagination on real property 1031s.
Wanted to get your thoughts on the TCJA changes in this area. I don't play in this arena at all.
Posted on 7/22/20 at 5:52 pm to LSUFanHouston
quote:First off, as long as bullshite taxfree billions in contributions to """charitable""" foundations exist, you can stick that thought right up your arse.
It's time to get rid of the automatic basis step-up at death.
Secondly as Biden offers no apparent deferment of inheritance liability until the time of eventual trade, the immediate tax bill would require liquidation of assets in a fire sale.
Posted on 7/22/20 at 5:58 pm to NC_Tigah
quote:
Secondly as Biden offers no apparent deferment of inheritance liability until the time of eventual trade, the immediate tax bill would require liquidation of assets in a fire sale.
Exactly. His plan is an attack on small commercial real estate investors. Too small for anyone to defend but big enough to buttfrick a huge number of independent investors.
Posted on 7/22/20 at 6:00 pm to NC_Tigah
Not that I like his proposed 40% capital gains tax, but I think a good compromise would be to give investors a choice.....you can either tax defer capital gains and pay 40% when you liquidate OR you can do mark-to-market and continue to pay at the existing capital gains rate. Most people would probably choose to defer and hope rates go down but it might bring forward some tax revenues.
A similar option could apply to 1031. You can either roll it in but pay 40% once sold or you can pay 20% every time you sell to buy another property. Once again, don’t like it but gives investors options.
A similar option could apply to 1031. You can either roll it in but pay 40% once sold or you can pay 20% every time you sell to buy another property. Once again, don’t like it but gives investors options.
This post was edited on 7/22/20 at 6:02 pm
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