What is going on with the Big Beautiful Bill?

What's going on with the Big Beautiful Bill?

  • Trump is knowingly lying about Medicaid cuts

    Votes: 10 55.6%

  • Trump is being misled by his staff

    Votes: 0 0.0%

  • Tillis is lying

    Votes: 8 44.4%
  • Total voters
    18
  • Poll closed .
#452
#452
McDad said:
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?
Click to expand...
Sorry I haven’t been in here in a bit, I have to take a mental health break from political topics sometimes. It’s not really a loophole it’s a 1031 exchange, which is a specific, legal part of the tax code designed to encourage reinvestment in real estate. You’re not avoiding taxes you are deferring them, and if you cash out in the future you’ll still owe the IRS. I get where you’re coming from, but I don’t think using a tax rule as it was intended is unethical, especially when it’s available to anyone investing in real estate. It’s not like billionaires who use shell companies, offshore accounts, or borrow against assets to never pay taxes.
 
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#453
#453
Berry4Heisman14 said:
Sorry I haven’t been in here in a bit, I have to take a mental health break from political topics sometimes. It’s not really a loophole it’s a 1031 exchange, which is a specific, legal part of the tax code designed to encourage reinvestment in real estate. You’re not avoiding taxes you are deferring them, and if you cash out in the future you’ll still owe the IRS. I get where you’re coming from, but I don’t think using a tax rule as it was intended is unethical, especially when it’s available to anyone investing in real estate. It’s not like billionaires who use shell companies, offshore accounts, or borrow against assets to never pay taxes.
Click to expand...

Most wealthy people keep 1031'ing until death where they can use stepped up basis for permanent deferral...

Not sure how that is different than using a security backed debt if intent is permanent deferral...
 
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#454
#454
Berry4Heisman14 said:
Sorry I haven’t been in here in a bit, I have to take a mental health break from political topics sometimes. It’s not really a loophole it’s a 1031 exchange, which is a specific, legal part of the tax code designed to encourage reinvestment in real estate. You’re not avoiding taxes you are deferring them, and if you cash out in the future you’ll still owe the IRS. I get where you’re coming from, but I don’t think using a tax rule as it was intended is unethical, especially when it’s available to anyone investing in real estate. It’s not like billionaires who use shell companies, offshore accounts, or borrow against assets to never pay taxes.
Click to expand...
No worries. We all need breaks occasionally.

You have no qualms about the 1031 deferment. But you are against me borrowing against my real estate to fund my living expenses, thereby, avoiding income taxes on the money?
 
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#455
#455
BigOrangeMojo said:
Most wealthy people keep 1031'ing until death where they can use stepped up basis for permanent deferral...

Not sure how that is different than using a security backed debt if intent is permanent deferral...
Click to expand...
I plan on deferring forever and leaving to my kids or grandkids as a stepped up asset.
 
#457
#457
BigOrangeMojo said:
I got a 1031 and 2 involuntary conversions I plan on doing the same with...
Click to expand...
You are a horrible, greedy man.

Wasn't it Ronald Reagan who said something to the effect of, 'we have a moral obligation to send as little of our tax money to DC as we legally can'?
 
#458
#458
McDad said:
You are a horrible, greedy man.

Wasn't it Ronald Reagan who said something to the effect of, 'we have a moral obligation to send as little of our tax money to DC as we legally can'?
Click to expand...

WTF never liked me putting "Do Backdoor" on the calendar in the kitchen as reminder to do backdoor Roth conversion...

I dont get EITC, education credits, child tax credit because of my income. I have no issue taking advantage of the laws as written...
 
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#461
#461
McDad said:
You are a horrible, greedy man.

Wasn't it Ronald Reagan who said something to the effect of, 'we have a moral obligation to send as little of our tax money to DC as we legally can'?
Click to expand...

There’s quite a few on this board that want to pay more in taxes….but they’ll only do it if you have to as well. 🤣
 
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#463
#463
hog88 said:
Nobody on this board WANTS to pay more in taxes... Several just want those better off than them to pay more.
Click to expand...

I know luther has said he would love to pay more in taxes but won’t do it voluntarily, only if everyone has to as well. There may be some sort of tds associated with it.
 
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#466
#466
McDad said:
No worries. We all need breaks occasionally.

You have no qualms about the 1031 deferment. But you are against me borrowing against my real estate to fund my living expenses, thereby, avoiding income taxes on the money?
Click to expand...
I wouldn’t say I’m against borrowing against your real estate it’s legal too, and I get why people do it. But I do think there’s a difference in intentions between using a 1031 to reinvest in productive assets and using debt to fund a lifestyle while technically avoiding income tax.
One is deferring tax tied to active investing the other can turn into a way to permanently sidestep taxes while still living large. That’s the part that starts to feel out of touch with how the average person gets taxed. Not saying it’s evil or illegal just that it highlights how uneven the system is.
 
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