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re: Biden wants to kill 1031 Exchanges (read this. it's important)
Posted on 7/21/20 at 6:18 pm to udtiger
Posted on 7/21/20 at 6:18 pm to udtiger
quote:hopefully I'm not giving him too much credit but my guess is that he would leave intact the exemptions for selling your own house versus selling investment property
Bob and Linda scraped for 5 years living in a apartment to get their 20% for their starter home, which they bought in 2005 for $200k. In 2020, they sell the house for $325k (owing $125k) and take their equity of $190k (equity after less commission), as a down payment on their $600k dream (and last) house.
Now...under Biden's plan, instead of $190k, the g takes 20% ($40k) so now they only have $150k to put down.
3
Posted on 7/21/20 at 6:19 pm to stickly
(no message)
Posted on 7/21/20 at 6:19 pm to nugget
Cajunliberal is a legit fricking idiot on this topic.
"Better to remain silent and thought to be a fool or open your mouth and release any doubt"
He did the latter.
"Better to remain silent and thought to be a fool or open your mouth and release any doubt"
He did the latter.
Posted on 7/21/20 at 6:20 pm to stickly
Revolution? Civil War? What can a man do? I don't think my representatives have a clue.
Posted on 7/21/20 at 6:20 pm to ShortyRob
The worst part is it’s to raise revenue to expand child care for single moms and housing for old people.
Literally pandering to the base and targeting wealth-generating provisions to do it.
Literally pandering to the base and targeting wealth-generating provisions to do it.
Posted on 7/21/20 at 6:20 pm to stickly
He also wants to tax unrealized capital gains on stocks. The federal government cannot pass this the big law lawyers, bankers and Congress understand they can't do this or else they could lose the pension system.
Posted on 7/21/20 at 6:20 pm to texn
quote:
One question: are you sure about the retroactive taxation of prior 1031 exchanges? I haven't seen anything about that...from what I read, it seems like he just wants to do away with 1031 exchanges going forward.
I was wondering about this myself. Would be insanity to apply this retroactively and make scenarios like the one in the OP possible.
Posted on 7/21/20 at 6:21 pm to udtiger
quote:
Here's a better and more real world example...
Bob and Linda scraped for 5 years living in a apartment to get their 20% for their starter home, which they bought in 2005 for $200k. In 2020, they sell the house for $325k (owing $125k) and take their equity of $190k (equity after less commission), as a down payment on their $600k dream (and last) house.
Now...under Biden's plan, instead of $190k, the g takes 20% ($40k) so now they only have $150k to put down.
Wrong code section.121 says hi.
This post was edited on 7/21/20 at 6:23 pm
Posted on 7/21/20 at 6:21 pm to texn
quote:
If he does want to retroactively tax the deferred gains on past 1031 exchanges (and this some how passes Constitutional review), the economic impact would be devastating.
That's exactly what they have said they want to do. They want to collect the *unrealized tax* that 1031s have enabled since the 1920s.
Posted on 7/21/20 at 6:22 pm to wutangfinancial
Taxing unrealized gains is fricking stupid.
A stock can be a high flyer one day and go bankrupt the next depending on market conditions or financial frickers (Enron, Worldcom, etc).
Until you cash out, it is hard to call it a gain.
A stock can be a high flyer one day and go bankrupt the next depending on market conditions or financial frickers (Enron, Worldcom, etc).
Until you cash out, it is hard to call it a gain.
Posted on 7/21/20 at 6:23 pm to ShortyRob
quote:
He explodes rent
Morons on the left have never understood unintended consequence and they won't start now.
I have learned in the past three months that leftist/liberals/Democrats, whatever they want to be called, are the most moronic, soulless, ghoulish people walking the earth. They live in the most prosperous, opportunistic country ever, yet are totally miserable with themselves and life in general.
I wish they'd all eat a cyanide tablet, my mother included.
Posted on 7/21/20 at 6:24 pm to ShortyRob
quote:
hopefully I'm not giving him too much credit but my guess is that he would leave intact the exemptions for selling your own house versus selling investment property
That poster doesn't know what he is talking about.
Posted on 7/21/20 at 6:24 pm to RTRinTampa
Everyday that passes comes another reason to be scared shitless of a Biden presidency
Posted on 7/21/20 at 6:24 pm to Magician2
quote:
1031 exchange is a huge tax relief especially for middle class folks selling/buying property.
That wasn't my interpretation. I could be wrong, but normal middle class folks selling/buying property would still be exempt from paying capital gains on increased value of their homes so long as they have lived in and owned the home for 2+ years.
1031 is what allowed investors to roll profits forward into the next project.
Posted on 7/21/20 at 6:25 pm to gsvar2004
It’s funny how all the left tards steer really clear of a thread like this discussing policy.
Posted on 7/21/20 at 6:25 pm to MusclesofBrussels
The proposal being floated right is going to cause people to sell their 1031s off this year in order to avoid the tax in 2021 if Biden is elected. The economic impact of this will be horrible for the US economy as people will dump real estate investments for other safer investment avenues.
This hits mainly small individuals across the US. Great way to start a real estate crash.
This hits mainly small individuals across the US. Great way to start a real estate crash.
Posted on 7/21/20 at 6:26 pm to ShortyRob
quote:
If he gets his way he not only screws Bob. He explodes rent
But at least childcare will be free even though you will be living out of your car. So, yea that's a plus.
Posted on 7/21/20 at 6:27 pm to udtiger
quote:
Here's a better and more real world example...
Bob and Linda,68 years of age,sell their home paid off home of 40 years for a 400K capital gain edge. Their plan to downsize and have some coin to invest for retirement takes an 80K lick from Biden's tax plan, should he come after home equity.
quote:
That wasn't my interpretation. I could be wrong, but normal middle class folks selling/buying property would still be exempt from paying capital gains on increased value of their homes so long as they have lived in and owned the home for 2+ years.
That's very true and correct. The point was that once the 1031 Exchange is nullified, what prevents the same Socialist agenda from coming after home equity. Granted there may be some qualifications and exemptions on the value taxed, but BoB and Linda above would probably not get very much relief.
This post was edited on 7/21/20 at 6:31 pm
Posted on 7/21/20 at 6:27 pm to teke184
quote:
Taxing unrealized gains is fricking stupid.
A stock can be a high flyer one day and go bankrupt the next depending on market conditions or financial frickers (Enron, Worldcom, etc).
Until you cash out, it is hard to call it a gain.
Huh? You are wrong. They do cash the profits out and then roll them into the next project.
We're not talking about people owning property and suddenly getting a tax bill because the value increased.
Also, this doesn't affect people selling their own personal home.
Posted on 7/21/20 at 6:28 pm to keks tadpole
quote:
Bob and Linda,68 years of age,sell their home paid off home of 40 years for a 400K capital gain edge. Their plan to downsize and have some coin to invest for retirement takes an 80K lick from Biden's tax plan, should he come after home equity.
Is he going after 121 now too?
This post was edited on 7/21/20 at 6:29 pm
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