04-28-2021, 10:09 AM
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#31
Originally Posted By mp83⏩
I personally think there should be a like-kind exchange rule for equities too. It will make a more efficient market.And? If you get a $500k gain in stocks, you gotta pay taxes. Why should real estate be any different? I thought everyone wanted to close tax loopholes for the rich?
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04-28-2021, 10:13 AM
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#32
04-28-2021, 10:24 AM
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#33
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Originally Posted By saltypits⏩
Wrong. But at same time, I don’t see it being a huge deal either I specialize in real estate taxation for whatever that’s worth.This only affects flippers.
Having said that flippers have played a huge part in reviving shthole areas.
Having said that flippers have played a huge part in reviving shthole areas.
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04-28-2021, 10:25 AM
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#34
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Originally Posted By lntense⏩
That's the whole trick. Govt wants to slow those guys down from making trades because the market is overheating.That's a whole other topic, and yes you're right about paying on stock sales. Could be 58.2% or higher if living in a state like new york and selling stock lol. Selling stock and selling real estate using this "loophole" is actually different. The money goes right back into real estate, not always the case with stocks.(someone correct me if I am wrong)
Over 55% on selling stocks, think about that, that's another thing that blows my mind. The proposed Biden tax on long term capital gains.
Who takes all the risk? The buyer, and who takes over HALF the profit? The government. What do they do for the wealthy? and what is their incentive to keep business and investments in the US?
These taxes sound great on paper, but they DO affect us. Who are mostly middle class I am guessing, I am glad I am not upper middle class lol. Because why?
Over 55% on selling stocks, think about that, that's another thing that blows my mind. The proposed Biden tax on long term capital gains.
Who takes all the risk? The buyer, and who takes over HALF the profit? The government. What do they do for the wealthy? and what is their incentive to keep business and investments in the US?
These taxes sound great on paper, but they DO affect us. Who are mostly middle class I am guessing, I am glad I am not upper middle class lol. Because why?
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04-28-2021, 10:25 AM
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#35
Originally Posted By Anachron⏩
When did I call anyone stupid? If anything I want you to teach me so I can learn. I'm not saying it directly affects the middle class if you have read what I have said prior to what you bolded. Indirectly we will feel it, not sure how you don't see that and don't know what to tell you.For someone calling everyone else in this thread stupid, you really make some really ludicrous statements.
BRB a tax law that is affecting people who have realized capital gains of over half a million in a single tax year is hurting the middle class?
And you're saying the risk is someone having billions in commercial properties moving the capital out of said properties into another asset class before this new tax comes into effect?
Are you even reading what you're posting?
BRB a tax law that is affecting people who have realized capital gains of over half a million in a single tax year is hurting the middle class?
And you're saying the risk is someone having billions in commercial properties moving the capital out of said properties into another asset class before this new tax comes into effect?
Are you even reading what you're posting?
04-28-2021, 10:25 AM
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#36
04-28-2021, 10:26 AM
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#37
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Originally Posted By Globally⏩
People just 1031 over and over again until they die. Then what happens?I feel like I’m explaining this to a bowl full of goldfish repeatedly, but the 1031 exchange was never “untaxed gains” it was tax deferred gains for businesses to carry forward effectively in a very strict and very short time window between selling and buying a commercial property for equivalent usage.
If anyone is interested in being informed on 1031 exchange and the posts and articles ITT aren’t sufficient, a cursory google search would handle it in about 25 seconds of reading.
If anyone is interested in being informed on 1031 exchange and the posts and articles ITT aren’t sufficient, a cursory google search would handle it in about 25 seconds of reading.
Well I can tell you. Their heirs get a step up in basis at FMV and the tax never gets payed. That’s the real estate game.
It’s a special privilege for a very select few, fuk em. I cant LKE my wages every year can I ?
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04-28-2021, 10:29 AM
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#38
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Originally Posted By Anachron⏩
He’s wrong cause the gains are deferred indefinitely when the real estate person dies. Basis step up at death.Thanks for playing, now please go be passive aggressive somewhere else:
While you're at it, maybe brush up on the topic at hand before you comment further.
While you're at it, maybe brush up on the topic at hand before you comment further.
This is what they ALL do btw. For the most part anyway.
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04-28-2021, 10:30 AM
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#39
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Originally Posted By nothingshocking⏩
Haha yeah the bad things are only happening to the rich people, no way this will have an effect on me!Why would anyone who's not a professional real estate investor or tax professional be interested in this topic?
They wouldn't.
So take your pay grade and shove it up your ass.
They wouldn't.
So take your pay grade and shove it up your ass.
04-28-2021, 10:36 AM
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#40
04-28-2021, 10:38 AM
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#41
Originally Posted By Anachron⏩
Do you have any real estate? Report back when there is even less small family real estate availability. Then tell me none of it affected you.Oops sorry, I confused you with the other "middle class" dude in this thread.
04-28-2021, 10:39 AM
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#42
04-28-2021, 10:43 AM
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#43
Originally Posted By lntense⏩
Exactly. Are you also outraged at the proposed retroactive tax increase on people earning more than one million dollars per year?So now if you have 500k+ gains in a property you can't move the money over to the next property without paying taxes. Not likely many of usbut still it effects us indirectly.
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04-28-2021, 10:46 AM
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#44
Originally Posted By Anachron⏩
Slow them down because the market is overheating? I don’t see how them pulling their money out of the stock market and into small family real estate helps me.Report back when you can exhibit a logical thought process.
Edit : Here's an earlier post in the thread to get you started:
Edit : Here's an earlier post in the thread to get you started:
04-28-2021, 10:49 AM
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#45
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Originally Posted By Anachron⏩
I'm not quite sure what you are trying to convey here. If I owned a property for 60 years and sell it, the realized gain is seen in a single tax year, but the gains have been on paper over 60 years of ownership.For someone calling everyone else in this thread stupid, you really make some really ludicrous statements.
BRB a tax law that is affecting people who have realized capitalgains of over half a million in a single tax yearis hurting the middle class?
And you're saying the risk is someone having billions in commercial properties moving the capital out of said properties into another asset class before this new tax comes into effect?
Are you even reading what you're posting?
BRB a tax law that is affecting people who have realized capitalgains of over half a million in a single tax yearis hurting the middle class?
And you're saying the risk is someone having billions in commercial properties moving the capital out of said properties into another asset class before this new tax comes into effect?
Are you even reading what you're posting?
This mostly affects owners of property that have owned them for a long period of time.
You don't have to be great to start, but you have to start to be great.
04-28-2021, 10:49 AM
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#46
Originally Posted By chino3⏩
Did you read the part about it indirectly affecting us?Exactly. Are you also outraged at the proposed retroactive tax increase on people earning more than one million dollars per year?
And I would need to read more about the tax on people making more than a million. Link?
But probably not if it’s not money they already had invested. Is it taxed income?
04-28-2021, 10:51 AM
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#47
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Originally Posted By saltypits⏩
Gentrification is now racist. Get with the times bruh.This only affects flippers.
Having said that flippers have played a huge part in reviving shthole areas.
Having said that flippers have played a huge part in reviving shthole areas.
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04-28-2021, 10:59 AM
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#48
Originally Posted By saltypits⏩
Just got an offer last night for 3.1m for my apartment complex that just got finished being built. Been a year and 3 months project... Planning to 1031 the 1.3m profit into another property... lmao if this happens I'll be holding the next one for a period of time it appears.This only affects flippers.
Having said that flippers have played a huge part in reviving shthole areas.
Having said that flippers have played a huge part in reviving shthole areas.
No, had no intentions of flipping this complex. When market when up drastically over the last year and a half from initial projections, decided that we can take this and build a much larger complex with the profits.
04-28-2021, 11:07 AM
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#49
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Originally Posted By nothingshocking⏩
it's not untaxed its just delayed. its like a 401k for instance. you keep the cost basis its just that you arnt selling to churn a profit you are selling to flip the property to another property. This is a huge source of wealth for many ppl. eventually you will pay tax but this way you arnt being held downThis isn't a new concept. Untaxed gainz on property were capped at 250k when i learned tax in college... 1994 or so.
I didn't realize the cap went away???
500k untaxed gain seems reasonable. Anything more should be considered income.
I didn't realize the cap went away???
500k untaxed gain seems reasonable. Anything more should be considered income.
Think of a 401k. you dont want to keep the same investment for 50 years stuff changes and you need to flip an investment. if tech is overpriced and you need to rotate out of tech into other companies, imagine if you had to pay tax on that by the end of the year on the profits. by the time you retire, your 401k is a fraction of what it could have been because you kept getting dinged with taxes
same concept with the 1031 exchange
04-28-2021, 11:10 AM
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#50
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Guys just because something is used to defer taxes doesn’t automatically make it a “loophole”. The 1039 exchange has been used exactly how it was intended for decades to help people build wealth and strengthen our housing market.
This change in tax code appears to hurt that middle class (depending on how you view what should be a middle class lifestyle, I don’t subscribe to how the WSJ tried to define middle class) tremendously.
The Like Exchange was a staple for middle class professionals to move their money into property investments, andimprove their income.
500k profit is not a lot of money if you have been in your home for decades or are in an expensive housing market. Especially with the way inflation is going
This change in tax code appears to hurt that middle class (depending on how you view what should be a middle class lifestyle, I don’t subscribe to how the WSJ tried to define middle class) tremendously.
The Like Exchange was a staple for middle class professionals to move their money into property investments, andimprove their income.
500k profit is not a lot of money if you have been in your home for decades or are in an expensive housing market. Especially with the way inflation is going
04-28-2021, 11:12 AM
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#51
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let's add a tax for the foreigners who are buying up real estates while were added . if your not a legal permanent resident -NO Property for you !
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04-28-2021, 11:12 AM
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#52
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Originally Posted By Bigbuster1⏩
That’s not how it works in practice with the basis step up at death. I deal with 1031’s all day cuzGuys just because something is used to defer taxes doesn’t automatically make it a “loophole”. The 1039 exchange has been used exactly how it was intended for decades to help people build wealth and strengthen our housing market.
This change in tax code appears to hurt that middle class (depending on how you view what should be a middle class lifestyle, I don’t subscribe to how the WSJ tried to define middle class) tremendously.
The Like Exchange was a staple for middle class professionals to move their money into property investments, andimprove their income.
500k profit is not a lot of money if you have been in your home for decades or are in an expensive housing market. Especially with the way inflation is going
This change in tax code appears to hurt that middle class (depending on how you view what should be a middle class lifestyle, I don’t subscribe to how the WSJ tried to define middle class) tremendously.
The Like Exchange was a staple for middle class professionals to move their money into property investments, andimprove their income.
500k profit is not a lot of money if you have been in your home for decades or are in an expensive housing market. Especially with the way inflation is going
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04-28-2021, 11:14 AM
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#53
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This thread highlights how blissfully ignorant most are. All those saying "this wont effect any of us" are soo naive, soo damn naive.
ALL of these moves effect us normal people in a downstream way. We are soo fuked
ALL of these moves effect us normal people in a downstream way. We are soo fuked
04-28-2021, 11:22 AM
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#54
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So if i sell my property for bout 350k will i get taxed or not? I don't have the time for all this code/law schit brah
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04-28-2021, 11:24 AM
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#55
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Originally Posted By litljay⏩
This mostly impacts farmers who sell millions of dollars in land their family bought for 1 dollar.It also effects farmers and commercial property owners. I know quite a few farmers that have sold their farms and moved the money into commercial property. Or, if you are trying to move your investments from one state to another.
Removing the 1031 tax free exchange will now decrease the available capital for re-investment due to having to pay the tax.
Removing the 1031 tax free exchange will now decrease the available capital for re-investment due to having to pay the tax.
04-28-2021, 11:37 AM
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#56
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Originally Posted By knightofday⏩
this lmaoThis thread highlights how blissfully ignorant most are. All those saying "this wont effect any of us" are soo naive, soo damn naive.
ALL of these moves effect us normal people in a downstream way. We are soo fuked
ALL of these moves effect us normal people in a downstream way. We are soo fuked
don't worry though people. It certainly won't affect the poors. Chinese are only buying up the most expensive real estate on the west coast, and will surely not move to lower priced homes to avoid paying more in taxes. Not like they have more purchasing power, and will be able to price-war the lower priced homes between people who actually need/want them, rather than focusing on the more expensive homes that are out of a majority of the countries price range.
In no way whatsoever would people see this possibility of still pumping money into the real estate market and taking advantage of citizens now looking to buy a normal starter home that will keep their gains well below any extra taxation. They'll definitely just quit investing in real estate, or eat the tax.
This will affect everyone lol
"So t
04-28-2021, 11:50 AM
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#57
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Originally Posted By Zackad⏩
That spillover of Chinese money pumping RE values on the the coast --> coastal residents cash out and move inland--> RIP inland has already been going on since at least 2000. This tax isn't going to change that.this lmao
don't worry though people. It certainly won't affect the poors. Chinese are only buying up the most expensive real estate on the west coast, and will surely not move to lower priced homes to avoid paying more in taxes. Not like they have more purchasing power, and will be able to price-war the lower priced homes between people who actually need/want them, rather than focusing on the more expensive homes that are out of a majority of the countries price range.
In no way whatsoever would people see this possibility of still pumping money into the real estate market and taking advantage of citizens now looking to buy a normal starter home that will keep their gains well below any extra taxation. They'll definitely just quit investing in real estate, or eat the tax.
This will affect everyone lol
don't worry though people. It certainly won't affect the poors. Chinese are only buying up the most expensive real estate on the west coast, and will surely not move to lower priced homes to avoid paying more in taxes. Not like they have more purchasing power, and will be able to price-war the lower priced homes between people who actually need/want them, rather than focusing on the more expensive homes that are out of a majority of the countries price range.
In no way whatsoever would people see this possibility of still pumping money into the real estate market and taking advantage of citizens now looking to buy a normal starter home that will keep their gains well below any extra taxation. They'll definitely just quit investing in real estate, or eat the tax.
This will affect everyone lol
It's a way more systemic issue than one tax law can cover. Ask yourself "why does everyone in China want their money outside of the country", and "why don't they want to save it in cash." The answer to THOSE questions are some big fukking issues.
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04-28-2021, 11:56 AM
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#58
04-28-2021, 12:12 PM
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#59
Originally Posted By criminal_manne⏩
People just 1031 over and over again until they die. Then what happens?
Well I can tell you. Their heirs get a step up in basis at FMV and the tax never gets payed. That’s the real estate game.
It’s a special privilege for a very select few, fuk em. I cant LKE my wages every year can I ?
Well I can tell you. Their heirs get a step up in basis at FMV and the tax never gets payed. That’s the real estate game.
It’s a special privilege for a very select few, fuk em. I cant LKE my wages every year can I ?
Originally Posted By Anachron⏩
For someone calling everyone else in this thread stupid, you really make some really ludicrous statements.
BRB a tax law that is affecting people who have realized capital gains of over half a million in a single tax year is hurting the middle class?
And you're saying the risk is someone having billions in commercial properties moving the capital out of said properties into another asset class before this new tax comes into effect?
Are you even reading what you're posting?
BRB a tax law that is affecting people who have realized capital gains of over half a million in a single tax year is hurting the middle class?
And you're saying the risk is someone having billions in commercial properties moving the capital out of said properties into another asset class before this new tax comes into effect?
Are you even reading what you're posting?
Originally Posted By criminal_manne⏩
These. People aren’t even responding to the basis step up at death part.He’s wrong cause the gains are deferred indefinitely when the real estate person dies. Basis step up at death.
This is what they ALL do btw. For the most part anyway.
This is what they ALL do btw. For the most part anyway.
04-28-2021, 12:24 PM
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#60
Can’t believe people support the government increasing taxes
Only a matter of time before it Impacts them
Then it falls under the “ you get what you fuking deserve” category
Only a matter of time before it Impacts them
Then it falls under the “ you get what you fuking deserve” category
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