I am on the Jo20.com train this year and didn't vote for the guy in 16. Lets not for a minute think that Trump is doing anything every other real-estate developer is doing. The tax code is fucked up but I'm going to overly simplify how this can happen. Accountants please feel free to step in and correct where I get it incorrect.
Everyone who owns a home is in real-estate. The code makes it easiest for home owners to take
advantage of the same code Trump is utilizing. If you were to sell your
home at a profit you would owe zero dollars in taxes. If you die and
leave it to your children they gets a stepped up basis and owes zero
dollars in taxes on the gains.
With
that being said the rules are different for commercial real estate.
Lets say Trump bought your house from you as an investment property for
$250k. He remodeled your bathroom for $10k. He gets to deduct that
$10k immediately off his taxes. Then he gets to straight line
depreciate the property at -3.6%/year. So lets say he owned the
property for 366 days. He paid $250k, deducted $10k for the repairs and
depreciated $9k. That leaves him a basis of $231k. Lets say the market
value has increased to $300k over that period. So he's got a $69k
profit. To get around paying taxes on that he does whats called a 1031
exchange into his next property which lets him not pay any taxes. The gains move into that property. Rinse and repeat and never pay taxes. Oh and that doesn't take into account what happens when one of the properties lose money.
Then
when he dies he leaves it to his heirs and just like your kids they
get it at a stepped up basis and owe no taxes. This is extremely
simplified and doesn't bring into account leveraging and all the other
ways to manipulate the tax code.
Whether
its fair to have all these loopholes? No but I didn't write the code
and all he's doing is what every rich person on the left and right does. So blast away. I'm not trying to say he shouldn't pay more in taxes. If we closed these loopholes we wouldn't have near the debt that we currently do and I'm all in favor of that.
Quote: @AGRforever said:
I am on the Jo20.com train this year and didn't vote for the guy in 16. Lets not for a minute think that Trump is doing anything every other real-estate developer is doing. The tax code is fucked up but I'm going to overly simplify how this can happen. Accountants please feel free to step in and correct where I get it incorrect.
Everyone who owns a home is in real-estate. The code makes it easiest for home owners to take
advantage of the same code Trump is utilizing. If you were to sell your
home at a profit you would owe zero dollars in taxes. If you die and
leave it to your children they gets a stepped up basis and owes zero
dollars in taxes on the gains.
With
that being said the rules are different for commercial real estate.
Lets say Trump bought your house from you as an investment property for
$250k. He remodeled your bathroom for $10k. He gets to deduct that
$10k immediately off his taxes. Then he gets to straight line
depreciate the property at -3.6%/year. So lets say he owned the
property for 366 days. He paid $250k, deducted $10k for the repairs and
depreciated $9k. That leaves him a basis of $231k. Lets say the market
value has increased to $300k over that period. So he's got a $69k
profit. To get around paying taxes on that he does whats called a 1031
exchange into his next property which lets him not pay any taxes. The gains move into that property. Rinse and repeat and never pay taxes. Oh and that doesn't take into account what happens when one of the properties lose money.
Then
when he dies he leaves it to his heirs and just like your kids they
get it at a stepped up basis and owe no taxes. This is extremely
simplified and doesn't bring into account leveraging and all the other
ways to manipulate the tax code.
Whether
its fair to have all these loopholes? No but I didn't write the code
and all he's doing is what every rich person on the left and right does. So blast away. I'm not trying to say he shouldn't pay more in taxes. If we closed these loopholes we wouldn't have near the debt that we currently do and I'm all in favor of that.
You are not wrong that this is common practice. But the three things that are striking:
1) His boasting about paying millions in taxes and being this wealthy, he's a fraud
2) America First? He payed foreign countries more in taxes than he paid the US. He's a bullshitter
3) Being leveraged for hundreds of millions WHICH HE PG'D, meaning he is personally responsible for this upcoming debt. He's a risk
Luckily the Russian hacks got to Biden's tax . . . oh that's right, he posted them online.
Trump will have to admit to this being the truth, or throw out falsified documents (IF these released bits are proven to be accurate). Either way, not good for him.
I guess that's where I see the hypocrisy with whole conservative shtick, promote all the responsibility and devotion to god and country. But when it comes down to it's a "me" thing, what I can get away with to do the least for the common good. When you put a bunch of them in a room they can all rationalize this as Patriotism and Christianity, and define their society as only people like them. That's my personal opinion, I see a big difference between being a cynic and a skeptic, a pessimist and a realist. That's my shtick and I gotta go now and get those covid students off my lawn.
Quote: @BigAl99 said:
I guess that's where I see the hypocrisy with whole conservative shtick, promote all the responsibility and devotion to god and country. But when it comes down to it's a "me" thing, what I can get away with to do the least for the common good. When you put a bunch of them in a room they can all rationalize this as Patriotism and Christianity, and define their society as only people like them. That's my personal opinion, I see a big difference between being a cynic and a skeptic, a pessimist and a realist. That's my shtick and I gotta go now and get those covid students off my lawn.
It is no longer acceptable, these voices should be placed at the kids table and let the adults handle the issues of this country.
The only thing stopping it is the power acquired and protected by gerrymandering, honest electoral disruptions. Power begets power.
Their numbers are shrinking and they know it.
None of the President's previous tweets make him look good. Here's another doozy from 2012 when finding out that Obama pays $164k on $700k in income.
Constantly laughable.
Classic GOP! It's not too late to admit this guy was a fraud and you can't take the constant having to defend this fraud.
Quote: @Viking1987 said:
750 million year he won presidency first year as president 750 million top of your article
Just like that...silence.
Like has been said any times, some here argue for the sake of arguement making up their own facts even when the truth is presented to them or slaps them in the face. It's just blind support for Trump.
Quote: @mblack said:
@ Viking1987 said:
750 million year he won presidency first year as president 750 million top of your article
Just like that...silence.
Like has been said any times, some here argue for the sake of arguement making up their own facts even when the truth is presented to them or slaps them in the face. It's just blind support for Trump.
Because he knows ... paying only $750 in taxes is wrong. Global elitists!! Rawr!!
But since it’s HIS team and HIS guy, he doesn’t have the sack to just man up and admit that’s unfair and fucked up.
I think it’s a personality defect, people are so ashamed to admit they are wrong. They would rather sink with the Titanic than get in a lifeboat if they had to admit their favorite boat is taking on water.
Needless to say I hope he’s not homeschooling anyone in mathematics during Covid ...
Well "Trump's taxes" didn't last past 1 24 hr news cycle, did they?
Where are the Mueller-era links to all the nefarious goings-on, that "Trump's taxes" would deliver? You know, the ones ya'll promised in earlier threads?
Nothing-burger.
Trump paid $750 in total tax liability? That was refuted in the NYT's own OP/piece, (admitted in paragraph 24, or so), if ya'll know how to read your own propaganda.
.
Trump paid millions. In tax credits, at least. Admitted, by the NYT's OP you cite.
Real estate tax law is LOADED with complicated rules.
I know this, first hand.
I bought a "lot" in a promising local community at the height of the market.
Sold it, for a large loss. My accountant informed me I could take the loss as a tax deduction for x years until y amount of loss = actual loss.
I sold a second property (condo) for a huge loss. Was able to deduct the total loss/percentage on that sale as a lump sum during the year of the sale. Mitigating my loss, via the legal tax code.
I also (via my accountant) set up my business as an LLC to avoid payroll taxes.
Just like....Joe Biden. https://www.wsj.com/articles/biden-and-lawful-avoidance-of-payroll-taxes-11601820685
Businessmen hire accountants to save taxes.
Politiicans hire accountants to make themselves look good.
There's a reason this news-topic (Trump taxes!) didn't have "legs".
https://www.nationalreview.com/corner/why-nobody-cares-much-about-trumps-taxes/
Come on... it didn't last long because the news cycle in the Trump administration lasts about 45 minutes. Trump behaved like a toddler during the debate. The world is still discovering who became infected with the coronavirus during a super spreader event at the White House. The president of the United States just went 'home' after spending 3 nights in the hospital.
just never mind...
Quote: @Nichelle said:
Come on... it didn't last long because the news cycle in the Trump administration lasts about 45 minutes. Trump behaved like a toddler during the debate. The world is still discovering who became infected with the coronavirus during a super spreader event at the White House. The president of the United States just went 'home' after spending 3 nights in the hospital.
just never mind...
Mike laughed at me and you gave up (just never mind).
Good on you to know when you've been out-manu(v)red. 
|
