What is going on with the Big Beautiful Bill?

[hog88]

Let's say Hog's kid wants to spite his dad and he moves to California. He starts an AI company called LincolnLover and it becomes a huge hit. The company becomes worth 100 billion and Hog's kid owns 60% of it. He doesnt want to lose control of the company. He doesnt want to pay 33% fed + California capital gains rate on any stock sales so he borrows 10 million a year to live high on the hog.

I like it.

 

[McDad]

Why csnt others defer income tax? A 1031 is pretty common...

Besides extensions, or natural disasters, I don't know how any "working class" person defers income tax.

 

[BigOrangeMojo]

HogJr pays 7% interest (or it is capitalized by the bank), and puts up 14-20M per year as collateral on a loan instrument that is callable at any time?

14M is still .0002 is his value of the company....

 

[BigOrangeMojo]

Besides extensions, or natural disasters, I don't know how any "working class" person defers income tax.

401K, IRA

Full exclusion of cap gain on sale of home up tl 500K

Plenty pf ways for them to defer, save elsewhere

 

[McDad]

14M is still .0002 is his value of the company....

I understand now.

The scale of the amounts is so immense, the "normal" way of thinking doesn't apply.

 

[McDad]

401K, IRA

Full exclusion of cap gain on sale of home up tl 500K

Plenty pf ways for them to defer, save elsewhere

But the working class needs more of their income to subsist than I do. Therefore I can defer and a much larger scale than they do.

 

[BigOrangeMojo]

I understand now.

The scale of the amounts is so immense, the "normal" way of thinking doesn't apply.

The more normal way would be a billionaire who is approaching retirement age and they invested in Nvidia 20 years ago and they still hold it. They will borrow against it before cashing it out because of step up basis in stock....

 

[BigOrangeMojo]

But the working class needs more of their income to subsist than I do. Therefore I can defer and a much larger scale than they do.

Then they have an income problem...

 

[McDad]

The more normal way would be a billionaire who is approaching retirement age and they invested in Nvidia 20 years ago and they still hold it. They will borrow against it before cashing it out because of step up basis in stock....

Im unfamiliar.

Can you explain than as if I am an Alabama graduate?

 

[hog88]

Im unfamiliar.

Can you explain than as if I am an Alabama graduate?

You're not?

 

[Orangeburst]

McDad tryin to score free tax advice..lol

Hey McDad, when you go to prison you dont get to use the “I got my tax advice on Volnation” as a free out of jail card.

Trust me..I used TJ at the Texaco station.

 

[McDad]

You're not?

 

[Orangeburst]

You're not?

I think he lives close to border and even occassionaly sticks his toes there..the stank must stick to him.

 

[McDad]

McDad tryin to score free tax advice..lol

Hey McDad, when you go to prison you dont get to use the “I got my tax advice on Volnation” as a free out of jail card.

Trust me..I used TJ at the Texaco station.

McDad is trying to understand something.

You rube.

You earle.

You texaco taxahoe

 

[hog88]

I think he lives close to border and even occassionaly sticks his toes there..the stank must stick to him.

I think he's close enough to get in-state tuition...

 

[McDad]

I think he lives close to border and even occassionaly sticks his toes there..the stank must stick to him.

 

[McDad]

I think he's close enough to get in-state tuition...

You and Ob suck bigly.

 

[Orangeburst]

You and Ob suck bigly.

nm..you may not want to answer

 

[BigOrangeMojo]

Im unfamiliar.

Can you explain than as if I am an Alabama graduate?

Let's say you're name is Forrest, you have a 75 IQ, and you bought 1 million stock in Apple. It became worth 5 billion dollars.

One day, you realize that you caught AIDS from Jenny. You know you would likely die in 1-2 years. Instead of selling stock to live and provide for Forrest Jr., you borrowed against the value of it. You finally die from the AIDS and Forrest Jr's basis in the stock the value of the stock when you die (5 billion) so if he sells the stock, he will have no capital gain...

 

[hog88]

You and Ob suck bigly.

Tell us something we don't know... Like what does an Alabama graduate say in his first job interview?

 

[Orangeburst]

Tell us something we don't know... Like what does an Alabama graduate say in his first job interview?

Are those grease burns permament?

 

[hog88]

Are those grease burns permament?

The nozzle goes where?

 

[C-south]

Question for @Berry4Heisman14 and open to anyone who is dissatisfied with our cap gains tax law.

I can sell a piece of investment real estate for 345k. I purchased it for 45k. Rather than paying 60k (300k x 20%) to Unkie Sam, I defer the tax indefinitely and roll the 345 into another property.

Is that a 'loophole'?
Do I have a moral obligation to pay the cap gains tax since others cannot defer income tax?
If the amounts were increased 1000x (purchased for 45M, Sold for 345M, deferred 60M in tax) does it change your answers to the other two questions?

Can you buy something a little cheaper and pocket the difference?

 

[C-south]

The nozzle goes where?

That’s South Carolina.

 

[McDad]

Let's say you're name is Forrest, you have a 75 IQ, and you bought 1 million stock in Apple. It became worth 5 billion dollars.

One day, you realize that you caught AIDS from Jenny. You know you would likely die in 1-2 years. Instead of selling stock to live and provide for Forrest Jr., you borrowed against the value of it. You finally die from the AIDS and Forrest Jr's basis in the stock the value of the stock when you die (5 billion) so if he sells the stock, he will have no capital gain...

Oh. jUst like in real estate.

I thought there was something available in stocks that might be different.