Approving this because it is pretty relevant to the market even though the chances of this happening are fucking slim to none. Try to keep the discussion on topic and not political….
Again, this would only apply to capital gains over $1,000,000… which affects none of you ![img](emote|t5_2th52|4267)![img](emote|t5_2th52|4271)
When you buy an asset, like stock for instance and it raises in value and you sell it within a year, you have to give 40% of your profit to the government.
This proposition applies only for gains above one million which is an important detail people are deliberately leaving out to misinform and make it unpopular. I think it's a great thing that will realistically only affect the ridiculously wealthy and the occasional regard who makes a risky play.
That's by design. Any proposed tax increases to high earners and the very wealthy will be presented without that context to scare average low-information voters into thinking they're even remotely close to being included.
Similarly, it's at least somewhat intentional that *many* people do not understand the concept of marginal tax rates and think that a $5 annual raise can hypothetically cause them to lose thousands of dollars by bumping them into the next tax bracket. Helps to keep people generally confused and afraid of taxes even as a general concept.
^Also ^it's ^"bury ^the ^lede" ^if ^you ^care.
All talk of tax the rich but they never talk of adding more tax brackets. Make tax brackets all the way to 1B and then we can fine tune rates as needed.
Edit because Im tired of having the same discussion over and over
Current tax brackets max at 37% for around 540k.
Capital gains cap at 20% for around 517k
HYPOTHETHICAL NEW TAX BRACKETS USING ILLUSTRATIVE NUMBERS AS EXAMPLE
REGULAR INCOME
540K TO 1M 38%
1M TO 5M 39%
5 TO 10M 40%
10M TO 100M 42%
100M TO 500M 45%
500M TO 1B 50%
CAPITAL GAINS
517K TO 1M 21%
1M TO 5M 22%
5M TO 10M 23%
10M TO 100M 25%
100M TO 500M 30%
500M TO 1B 35%
Numbers can be moved left right or anywhere they need. The rich pay more. Only the rich pay more. We cut the country debt. Every American wins. We can fund our society and keep our country prosperous.
These people that run the country are bought and paid for. No billionaire "makes" money. Jeff Bezos fucking qualified for COVID stimulus money, the poor guy barely makes any income :(
For a simply $32/ month you can feed a billionairre. They are only making $1/yr salary. Call today and show your friends how truly generous you are and help save a billionaire right now, call today 1800-420-6969
This is why they want to tax unrealized gains.
They never sell - they live off margin loans backed by appreciation in their gigantic billions of stock.
Yep the public at large are fucking stupid when it comes to taxes. The reality is this is all 100% PR fluff with no teeth. They close no loop holes, and they will parade around like they actually did something to solve the problem.
Nobody makes anywhere near that that'll be hit by income tax. Anyone who talks about Eisenhower era income tax brackets is a moron too. If you want to tax the rich you'd do it through capital gains, forced realization, changing inheritance/trusts/stepped up basis, and increasing the corporate tax.
Raising income tax brackets hits doctors, lawyers, engineers, etc. Which, fine, if youre making 300k you should probably pay more. But that has literally nothing to do with taxing billionaires.
> Raising income tax brackets hits doctors, lawyers, engineers, etc. Which, fine, if youre making 300k you should probably pay more. But that has literally nothing to do with taxing billionaires.
It's actually people in that bracket who tend to pay the most in taxes. High wage earners and small business owners. They make enough to qualify for higher taxes, but don't have enough to pay lobbyists to give them massive deductions.
Yeah, the effective tax rate is basically a skewed bell curve that tapers off to zero at both ends. Just look at Trump — I pay more in taxes each paycheck than he paid in two consecutive years in the mid-2010s.
People really have no idea what being rich is actually about. A lot of uber-rich people take out SBLOC loans on their portfolio then just ride them until death to dodge capital gains.
That only works in a low interest rate environment where gains are assured and payments are minimal. Now we are going back to somewhat normal rates, this method will be phased out as the cost to service the debt will be greater than the tax to sell.
When they were getting loans at 1%, they basically were getting, roughly, 20 years of tax avoidance if they were doing an interest only loan (of course they have to pay income tax on the income they used to service the debt). Now that rates are higher, they are only getting 3 or so years of tax avoidance. Also, on loans like this, rates aren’t fixed like mortgages, so people who got in at 1% are now paying at 6% on a falling asset. Look at Bally Sports if you want an example of that.
Refreshing to see someone who recognizes the difference of ordinary and capital gains and some methods used to delay or outright avoid the taxes via planning like trusts.
Charitable donations are also abused heavily. IMO if you donate and want to encourage that via tax deduction that’s fine but then charities should be paying tax on capital gains and on receipts (would quickly change a lot of abuse).
> Raising income tax brackets hits doctors, lawyers, engineers, etc. Which, fine, if youre making 300k you should probably pay more. But that has literally nothing to do with taxing billionaires.
These are the people I'm fine with leaving the rates where they're at if anything. We shouldn't be targeting labor based income when we're talking about raising taxes or instituting high taxes on rich people, we should be targeting capital based income.
The people who are making $300-400k in many cases had heavy upfront investments into their educations and training. Not saying they should be paying a low tax rate by any means, but the example above showing capital gains for these ultra wealthy being taxed lower than salaries from people working these jobs is the wrong way to do it IMO. It shouldn't be the working class versus lawyers, engineers etc., when it comes to fighting over pennies. Its the ownership class people should be going after.
You can write off the full amount against future capital gains. If you lose 100k this year, and have 100k in capital gains next year, you can write off the full amount.
The 3k limit is just against ordinary income.
This is un-ironically something that needs to happen. We’ve had this $3,000 limit since 1976. That’s about $15,000 in today’s value accounting for inflation.
I agree that it should go up / be tagged to inflation, but are you guys just losing money year after year and so you never get to use up your remaining old losses with some capital gain? Actually, don't answer that.
Biden's proposed budget is just an opening salvo in a negotiation. Raising the capital loss deduction would be an offset on the other side. The administration knows 40% is not serious. They're just hoping after hearing 40%, the reaction to moving from 20% to 24% might be less ballistic. Highly doubt they'll get anywhere, but it's something to run on in '24.
Wait so make investment to pay 40% tax but also take risk of losing it and not being able to claim that loss in its entirety? That is how you pull investors out of the market.
If the change happens, they should apply the hobby loss rules. You get to deduct the losses against other income for 3 years. After that, the losses only apply to gains from the activity.
As a tax attorney, I don't see an issue with that. If the gains are effectively treated as ordinary, the losses should be as well. However, there should be loss limitations as applied to other income, so taxpayers don't have to subsidize your hobbies.
From a [different article](https://www.thinkadvisor.com/2023/03/09/biden-to-push-for-25-billionaire-tax-capital-gains-hike-on-rich/):
>The Biden plan also ends a longstanding tax break for real estate investors who can avoid paying capital gains taxes on their profits if they continue to invest the proceeds in other properties.
I wonder what effect that would have on SFHs and the renting of them? This is probably the only interesting aspect of his proposal I've seen.
This is about the 1031 exchange. If you sell your house, u can avoid all taxes if you use all of the proceeds to purchase another property within a certain amount of time.
If it’s an investment property. Your main residence is subject to capital gains on your earnings over your basis. You can exempt up to 250k every 5 years if you live there for 2 of them as a single earner, or 500k if filing jointly. Basically you get to keep the profit when you sell your home. It’s really nice.
They changed the rule a while ago, in 1997. If the house you sold was your primary residence for at least 2 years and you made no more than $250k beyond your cost basis in the sale (or $500k if married) then the money is just yours, tax free. Obviously lots of people use that money to buy another house but it's no longer a requirement to get the tax exemption. ~~The caveat is that you can only use the exemption once every 5 years~~ (edit - I got this mixed up with the 2 in 5 rule where you can have a property converted into a rental and still claim the exemption so long as you lived in it for 2 of the past 5 years, but you can't use the exemption again until ay least 2 more years have passed). Also important to note it is the amount beyond your cost basis - not the price you paid - so if you save receipts for major improvements like additions, roofs, renovations, etc, than you can add that to your cost basis to keep yourself under the threshold or at least minimize the amount of money that does get taxed.
Shouldn’t that be the other way around in a sane world? So that people that need to move can use their equity to the fullest but those speculating for profit pay some goddamn taxes?
It’s only deferred, and technically needs to get paid back eventually. I assume there are shenanigans around inheritance that let folks defer until death and have their heirs pay a lower rate though
I'm not necessarily opposed to that. While it's a fun loophole to quickly scale up, I do worry that that exact thing is what's been pricing locals out of their housing market
Largely, those corporations buy with debt. And these gains aren't tax free, it's just tax deferred until you sell the new property. Certainly could 1031 that sale as well but if you never realize the gains you're never actually profiting to pay taxes. The rent you collect in the property is subject to taxes annually.
I mean if they continue to buy nicer homes with the rent money they’ll increase how much they can get in rent so it’s still a win even if they never realise the gains on the actual property. Obviously pay taxes on the rent but making more money and having more assets is usually pretty nice
Dude, come on, man. I make like... 97 cents a year on my 2.3% APY Ally account. Compounded daily over the next 34 billion years, this is gonna hit me really hard, brah.
I'm also assuming it's the income made *over* the 400k joint limit. Your $399,999 is getting the same rate. These are the hoople heads that thing a raise "bumps them into a higher tax bracket".
I, for one, can’t believe Fox Business would omit relevant information in an effort to shape the narrative. I will be having a stern talk with Rupert about this. Same with OP, who seems to post in r/Conservative quite a bit
Edit: You know, looking at the post history and frequency, I wouldn’t be surprised if OP’s account is part of a bot farm. So, who’s trying to manipulate these subs’ users, and to what end?
Yeah... this is a bluff card to negotiate more ink for the money printer.
Borrow more or tax more... your turn GOP.
Zero chance of it passing, but it sets a frame of discussion on reducing the budget deficits which by dentition drive inflation since they spend borrowed money.
My money is on runaway inflation
China: "Hold my beer" ....
War is expensive, money printer goes brrr. Productive output is literally blown up.
Still banking on inflation... you will not shake my consumer confidence in the ineptitude of world leaders.
Because that part of the budget is the duck. It's meant to draw the attention of anyone reading it. And looking at this sub, it's done its job pretty well. This gives republicans something to negotiate out of the proposal. Otherwise, what would have grabbed your attention in the budget? Probably the increased medicare funding.
It’s good negotiating. He’s set the terms, now the republicans have to set theirs. They can meet in the middle, but first the Rs have to actually put what they want to do in writing (they really don’t want to do this)
https://www.brookings.edu/2023/03/01/proposed-fairtax-rate-would-add-trillions-to-deficits-over-10-years/
Seems house republicans plan is to eliminate the IRS and impose a 30% sales tax on everything not purchased by a business.
I swear they are like children.
“Oh, you want to disproportionately tax the rich? Let’s put in a tax that disproportionately effects the poor instead!”
Tax property taxes on any non-primary residence property. This is becoming landlords owning everything and vast majority unable to buy and forced to be renters
It’s like this in the UK. Average home price rise justifying increase in rents. Land banks become more valuable so rich landed gentry get wealthier. It also means that pension funds can rise rapidly (they invest heavily in real estate) so contributions can be less.
More accurate reporting would be to say that capital gains will be taxed like other earned income for higher income tax payers.
I don’t get why passive income is taxed less than labor.
In case you’re curious: here’s an article from st Louis fed that explains both sides of the debate - why we should keep cap gains tax rates and why we should eliminate them.
https://www.stlouisfed.org/publications/regional-economist/july-1995/should-we-ax-the-capital-gains-tax
They miss a few key points on both sides of the debate but it’s decent for whatever side of the fence you sit on.
Personally, I think our entire tax system needs to be reworked a bit, including capital gains. There should be a small benefit to capital gains over ordinary income to encourage investments over savings but it should not be so outlandishly outsized and we need to limit to step up in basis received for inheritance of securities.
>When they make 23k working at dollar general
But if you don't advocate for the millionaires and billionaires, how will you get them to accept you as one of their own so you can stop being just a "temporarily embarrassed" millionaire with no money?
Incentive to people with cash to yolo that money into ventures that might fail with the goal being these ventures might create jobs and further investments through CAPEX, wages, etc to expand versus the government having to do it themselves.
"would only apply to capital gains over $1,000,000"
why wouldn't people vote for this?
The wealthiest people are using all sorts of dodges to pay less tax than a minimum wage worker, yet low wage people vote for those who wish to keep it this way.
Ridiculous
Only for those making more than $1M in annual income so not an issue here where the average investment income is -$63,222. Can we get a 40% tax rebate?
Oh you mean the top tax bracket that currently kicks in at about $500k depending on filing status? I guess Fox Business just didn't have room in the headline for it.
Approving this because it is pretty relevant to the market even though the chances of this happening are fucking slim to none. Try to keep the discussion on topic and not political…. Again, this would only apply to capital gains over $1,000,000… which affects none of you ![img](emote|t5_2th52|4267)![img](emote|t5_2th52|4271)
Will he increase the tax credit for losses also?
Government would go further into debt refunding all the degens on WSB
Tax credits are negative dollars that can be added to future gains to reduce the taxable amount. So..... yes?
What are capital gains?
The name of the gyms in DC.
Capitol gainz
We put the rep in representative.
House of Reps sounds like a viable competitor
Don't neglect the juicedicial branch
Exchanges like this are why I love Reddit
The judges clearly hogging the bench press stations
Meanwhile Congress is at the gym all day and somehow only gets one set in
Fucking lol
fuck you, take the award.
Right, not sure if relevant to this sub. We just lose money here sir.
Was about to give a real answer until I saw where I was.
I'm honestly kind of shocked by how many real answers I'm getting
Want me to mansplain it?
Negative capital losses. They've only ever been theorized, never proven yet.
When you buy an asset, like stock for instance and it raises in value and you sell it within a year, you have to give 40% of your profit to the government.
He's joking because nobody in this sub actually makes gains, only losses.
Dang it! I wanted to be informative. Instead, I'm informative and naive...
\*for capitol gains beyond 1 million dollars. This will not affect anyone on this sub.
This proposition applies only for gains above one million which is an important detail people are deliberately leaving out to misinform and make it unpopular. I think it's a great thing that will realistically only affect the ridiculously wealthy and the occasional regard who makes a risky play.
I am sure all the Congressmen and Senators will all be happy to pay more in the ill-gotten gains
[Reddit banned me cause of a comment on WSB](https://imgur.com/a/wgEDobm). Reddit is run by commies.
Yeah but they’ll still fight it
Yea who wants to pay taxes on unlimited money, that is like unlimited taxes!
40% of infinity = infinity 🤔
The people really affected. This sub worrying about $1M + capital *gains.* We’re sucking dick for beer money at this point in the economic cycle.
Wait, you’re getting money for sucking dick?
They say do what you love and the money follows 🤷🏻♂️
They also say do what you love and you'll never work a day in your life! Retired at 32 baby!
Now are these 32 dicks you sucked once, or do you have to keep sucking them continuously to retire?
you suck 4% of them at a time during retirement
A sucked dick never stays that way.
At what point does a sucked dick become unsucked?
Age times 2 minutes
How many dicks?
37
[удалено]
At once.
everyday
Try not to suck any dick on the way to the parking lot!
As many as possible
And they’re getting enough money for beer … I’m doing something wrong
> We’re sucking dick for beer money at this point in the economic cycle. I'm making beer for dick money. We are not the same.
[удалено]
Right, like after the cancelation part, you could just make beer = dick money a time and tested formula
Hey, my Wendy's dumpster work goes toward my mortgage *thank you very much*
![img](emote|t5_2th52|8882)
Title really buried the lead there. I thought it was *all* capital gains being taxed at that rate, which sounded bananas.
Well…Fox
That's by design. Any proposed tax increases to high earners and the very wealthy will be presented without that context to scare average low-information voters into thinking they're even remotely close to being included. Similarly, it's at least somewhat intentional that *many* people do not understand the concept of marginal tax rates and think that a $5 annual raise can hypothetically cause them to lose thousands of dollars by bumping them into the next tax bracket. Helps to keep people generally confused and afraid of taxes even as a general concept. ^Also ^it's ^"bury ^the ^lede" ^if ^you ^care.
Glad to see there are people with realistic perspectives in this sub.
exactly , broke people fighting to keep the absurdly rich from hoarding money and paying taxes.
All talk of tax the rich but they never talk of adding more tax brackets. Make tax brackets all the way to 1B and then we can fine tune rates as needed. Edit because Im tired of having the same discussion over and over Current tax brackets max at 37% for around 540k. Capital gains cap at 20% for around 517k HYPOTHETHICAL NEW TAX BRACKETS USING ILLUSTRATIVE NUMBERS AS EXAMPLE REGULAR INCOME 540K TO 1M 38% 1M TO 5M 39% 5 TO 10M 40% 10M TO 100M 42% 100M TO 500M 45% 500M TO 1B 50% CAPITAL GAINS 517K TO 1M 21% 1M TO 5M 22% 5M TO 10M 23% 10M TO 100M 25% 100M TO 500M 30% 500M TO 1B 35% Numbers can be moved left right or anywhere they need. The rich pay more. Only the rich pay more. We cut the country debt. Every American wins. We can fund our society and keep our country prosperous.
These people that run the country are bought and paid for. No billionaire "makes" money. Jeff Bezos fucking qualified for COVID stimulus money, the poor guy barely makes any income :(
For a simply $32/ month you can feed a billionairre. They are only making $1/yr salary. Call today and show your friends how truly generous you are and help save a billionaire right now, call today 1800-420-6969
This is why they want to tax unrealized gains. They never sell - they live off margin loans backed by appreciation in their gigantic billions of stock.
Yep the public at large are fucking stupid when it comes to taxes. The reality is this is all 100% PR fluff with no teeth. They close no loop holes, and they will parade around like they actually did something to solve the problem.
Margin??? Should I start with margin and follow this subreddit?
Nobody makes anywhere near that that'll be hit by income tax. Anyone who talks about Eisenhower era income tax brackets is a moron too. If you want to tax the rich you'd do it through capital gains, forced realization, changing inheritance/trusts/stepped up basis, and increasing the corporate tax. Raising income tax brackets hits doctors, lawyers, engineers, etc. Which, fine, if youre making 300k you should probably pay more. But that has literally nothing to do with taxing billionaires.
> Raising income tax brackets hits doctors, lawyers, engineers, etc. Which, fine, if youre making 300k you should probably pay more. But that has literally nothing to do with taxing billionaires. It's actually people in that bracket who tend to pay the most in taxes. High wage earners and small business owners. They make enough to qualify for higher taxes, but don't have enough to pay lobbyists to give them massive deductions.
Yeah, the effective tax rate is basically a skewed bell curve that tapers off to zero at both ends. Just look at Trump — I pay more in taxes each paycheck than he paid in two consecutive years in the mid-2010s.
People really have no idea what being rich is actually about. A lot of uber-rich people take out SBLOC loans on their portfolio then just ride them until death to dodge capital gains.
That only works in a low interest rate environment where gains are assured and payments are minimal. Now we are going back to somewhat normal rates, this method will be phased out as the cost to service the debt will be greater than the tax to sell.
Unless rates get a lot closer to ltcg tax rates it will always work
When they were getting loans at 1%, they basically were getting, roughly, 20 years of tax avoidance if they were doing an interest only loan (of course they have to pay income tax on the income they used to service the debt). Now that rates are higher, they are only getting 3 or so years of tax avoidance. Also, on loans like this, rates aren’t fixed like mortgages, so people who got in at 1% are now paying at 6% on a falling asset. Look at Bally Sports if you want an example of that.
Refreshing to see someone who recognizes the difference of ordinary and capital gains and some methods used to delay or outright avoid the taxes via planning like trusts. Charitable donations are also abused heavily. IMO if you donate and want to encourage that via tax deduction that’s fine but then charities should be paying tax on capital gains and on receipts (would quickly change a lot of abuse).
> Raising income tax brackets hits doctors, lawyers, engineers, etc. Which, fine, if youre making 300k you should probably pay more. But that has literally nothing to do with taxing billionaires. These are the people I'm fine with leaving the rates where they're at if anything. We shouldn't be targeting labor based income when we're talking about raising taxes or instituting high taxes on rich people, we should be targeting capital based income. The people who are making $300-400k in many cases had heavy upfront investments into their educations and training. Not saying they should be paying a low tax rate by any means, but the example above showing capital gains for these ultra wealthy being taxed lower than salaries from people working these jobs is the wrong way to do it IMO. It shouldn't be the working class versus lawyers, engineers etc., when it comes to fighting over pennies. Its the ownership class people should be going after.
I'd be more interested in raising the maximum capital loss tax deduction.
Now this is relevant to the group.
He should run for president on that platform
Which platform? Robinhood?
I'd buy that.. until I couldn't.
Zing!!!
Well sure..... until they freeze the campaign due to "market volatility."
![img](emote|t5_2th52|27189)
![img](emote|t5_2th52|4641)![img](emote|t5_2th52|4641)
Right, after this past year I can write off a whole $3k for the next 35 years. Like fucking come on dude
You can write off the full amount against future capital gains. If you lose 100k this year, and have 100k in capital gains next year, you can write off the full amount. The 3k limit is just against ordinary income.
This is r/wallstreetbets, though. For that to work, you'd need future capital gains.
Are you insinuating that my moon shots may never reach... The moon? Well have fun being poor, I have some work to do over by the dumpster.
that’s amazing and I had no idea. Thank you for elucidating.
Damn. I'll pour one out for you my dude/dudette.
This is un-ironically something that needs to happen. We’ve had this $3,000 limit since 1976. That’s about $15,000 in today’s value accounting for inflation.
I agree that it should go up / be tagged to inflation, but are you guys just losing money year after year and so you never get to use up your remaining old losses with some capital gain? Actually, don't answer that.
Ye.. Uh.. Well... Um... Yes.
My goal is to stop trading one day and live off my carried-forward losses.
It is a hard life living off $3,000 loss a year.
The only judgement I want is from the honorable and thicc Madam Judge Judy 😤
I'm not proud of it, but yes...
Bro I have lost so much money that I don't even know when I'll ever break even what the fuck are you talking about
I said don't answer that!
This guy maths
One aircraft carrier less just because of this group if they double it as well
More like Aircraft carrier battle group…
make it retroactive pls
They should call it WallStreetBets Act.
How about the "redefining earnings, gains, and real-estate deductions" (REGARD) act
Biden's proposed budget is just an opening salvo in a negotiation. Raising the capital loss deduction would be an offset on the other side. The administration knows 40% is not serious. They're just hoping after hearing 40%, the reaction to moving from 20% to 24% might be less ballistic. Highly doubt they'll get anywhere, but it's something to run on in '24.
Just link it annually to the last 2 digits of the year.
[удалено]
You joke, but there is a [Y2038 problem](https://en.wikipedia.org/wiki/Year_2038_problem) that'll be relevant sooner than you think..
100%, no one in this subreddit needs to worry about capital GAINS taxes. ![img](emote|t5_2th52|4271)
I’d sign this petition if they’ll accept crayon
Wait so make investment to pay 40% tax but also take risk of losing it and not being able to claim that loss in its entirety? That is how you pull investors out of the market.
To pay 40% tax on the portion of realized gains >$1MM and bought & sold within 1 year* Pretty important clarification
So this wouldn’t effect us I guess.
*affect
The article says “long term investments “. Why you say within 1 year ?
Do you know where you are? Around here weeklies are long term investments. A year might just as well be an estate tax.
My tits are jacked!!
He would get 100% of our votes.
If the change happens, they should apply the hobby loss rules. You get to deduct the losses against other income for 3 years. After that, the losses only apply to gains from the activity. As a tax attorney, I don't see an issue with that. If the gains are effectively treated as ordinary, the losses should be as well. However, there should be loss limitations as applied to other income, so taxpayers don't have to subsidize your hobbies.
From a [different article](https://www.thinkadvisor.com/2023/03/09/biden-to-push-for-25-billionaire-tax-capital-gains-hike-on-rich/): >The Biden plan also ends a longstanding tax break for real estate investors who can avoid paying capital gains taxes on their profits if they continue to invest the proceeds in other properties. I wonder what effect that would have on SFHs and the renting of them? This is probably the only interesting aspect of his proposal I've seen.
This is about the 1031 exchange. If you sell your house, u can avoid all taxes if you use all of the proceeds to purchase another property within a certain amount of time.
If it’s an investment property. Your main residence is subject to capital gains on your earnings over your basis. You can exempt up to 250k every 5 years if you live there for 2 of them as a single earner, or 500k if filing jointly. Basically you get to keep the profit when you sell your home. It’s really nice.
So if you sell and don’t buy a new place (moving abroad or into an old folks home, etc), are you on the hook for paying taxes on all the profits?
They changed the rule a while ago, in 1997. If the house you sold was your primary residence for at least 2 years and you made no more than $250k beyond your cost basis in the sale (or $500k if married) then the money is just yours, tax free. Obviously lots of people use that money to buy another house but it's no longer a requirement to get the tax exemption. ~~The caveat is that you can only use the exemption once every 5 years~~ (edit - I got this mixed up with the 2 in 5 rule where you can have a property converted into a rental and still claim the exemption so long as you lived in it for 2 of the past 5 years, but you can't use the exemption again until ay least 2 more years have passed). Also important to note it is the amount beyond your cost basis - not the price you paid - so if you save receipts for major improvements like additions, roofs, renovations, etc, than you can add that to your cost basis to keep yourself under the threshold or at least minimize the amount of money that does get taxed.
Shouldn’t that be the other way around in a sane world? So that people that need to move can use their equity to the fullest but those speculating for profit pay some goddamn taxes?
Yea, it is in Canada.
It’s only deferred, and technically needs to get paid back eventually. I assume there are shenanigans around inheritance that let folks defer until death and have their heirs pay a lower rate though
You die, basis resets to fmv
I'm not necessarily opposed to that. While it's a fun loophole to quickly scale up, I do worry that that exact thing is what's been pricing locals out of their housing market
[удалено]
Largely, those corporations buy with debt. And these gains aren't tax free, it's just tax deferred until you sell the new property. Certainly could 1031 that sale as well but if you never realize the gains you're never actually profiting to pay taxes. The rent you collect in the property is subject to taxes annually.
I mean if they continue to buy nicer homes with the rent money they’ll increase how much they can get in rent so it’s still a win even if they never realise the gains on the actual property. Obviously pay taxes on the rent but making more money and having more assets is usually pretty nice
holy shit he wants to kill the 1031? CRE brokers in shambles
Don’t have to worry about this here ![img](emote|t5_2th52|4271)
Guys this is on capital gains over $1,000,000 This applies to none of you ![img](emote|t5_2th52|4271)
Guys this applies to *gains*. None of this applies to you.
Bruh you dont know me bruh
This can be easily resolved. Post your positions.
missionary, cow-girl, reverse cowgirl, doggie expiring friday.
I don't have experience with any of these. Where do I go to conduct DD?
That’s all of them 🤯
This actually applies to ^capital Which none of you have.
Dude, come on, man. I make like... 97 cents a year on my 2.3% APY Ally account. Compounded daily over the next 34 billion years, this is gonna hit me really hard, brah.
Speak for yourself peasant. I am $750,000 away from buying a small Polynesian island where I plan to become an overlord.
does the island cost $750,000? ![img](emote|t5_2th52|4271)
Nah, probably 550,000
Only down $200k? What type of wizardry is this?!
Started yesterday
$869,420 just gotta get back the first few options I traded!
No that's the monthly payment for a 50 year loan.
[удалено]
slave license modern poor ripe summer longing existence support skirt -- mass edited with redact.dev
I'm also assuming it's the income made *over* the 400k joint limit. Your $399,999 is getting the same rate. These are the hoople heads that thing a raise "bumps them into a higher tax bracket".
I mean, the only reason it doesn't apply to me is my gains are in a ROTH.
A fellow Roth enjoyer
Double capital gains of over $1,000,000 in a calendar year. Misleading title.
Double tax on *long term* capital gains of over $1,000,000 in a calendar year. Nobody in this sub should worry, it does nothing to FDs.
Short term capital gains are already at 37% for income over $500k
To be clear, STCG are taxed as ordinary income, and Biden is proposing to return the top rate to 39.6%, so it would be taxed at that, not 37%.
I, for one, can’t believe Fox Business would omit relevant information in an effort to shape the narrative. I will be having a stern talk with Rupert about this. Same with OP, who seems to post in r/Conservative quite a bit Edit: You know, looking at the post history and frequency, I wouldn’t be surprised if OP’s account is part of a bot farm. So, who’s trying to manipulate these subs’ users, and to what end?
Oof. WSB and r/conservative is a dangerous combo. What do you do when you gamble away your bootstraps?
We are all millionaires, so this would affect us all.
Not even most millionaires would be affected.. this is for million in GAINS in a single year. Most millionaires don’t make that
It's like the .5% of income earners or something.
Surely less than .5% that make over a million in gains only?
This has zero percent chance of passing.
Yeah... this is a bluff card to negotiate more ink for the money printer. Borrow more or tax more... your turn GOP. Zero chance of it passing, but it sets a frame of discussion on reducing the budget deficits which by dentition drive inflation since they spend borrowed money. My money is on runaway inflation
[удалено]
China: "Hold my beer" .... War is expensive, money printer goes brrr. Productive output is literally blown up. Still banking on inflation... you will not shake my consumer confidence in the ineptitude of world leaders.
Because that part of the budget is the duck. It's meant to draw the attention of anyone reading it. And looking at this sub, it's done its job pretty well. This gives republicans something to negotiate out of the proposal. Otherwise, what would have grabbed your attention in the budget? Probably the increased medicare funding.
Is it increased medicare funding from taxing incomes above 400K?
It’s good negotiating. He’s set the terms, now the republicans have to set theirs. They can meet in the middle, but first the Rs have to actually put what they want to do in writing (they really don’t want to do this)
https://www.brookings.edu/2023/03/01/proposed-fairtax-rate-would-add-trillions-to-deficits-over-10-years/ Seems house republicans plan is to eliminate the IRS and impose a 30% sales tax on everything not purchased by a business.
Wow, that is both worse and more dumb than I thought actually possible...
[удалено]
I swear they are like children. “Oh, you want to disproportionately tax the rich? Let’s put in a tax that disproportionately effects the poor instead!”
>“Oh, you want to ~~dis~~proportionately tax the rich? Let’s put in a tax that disproportionately effects the poor instead!” Ftfy
This is the worst idea I've ever heard...
STFU or I will hike another 100 points
Nice does capital loss also double ? Lol
Somebody asking the important question here!
What are capital gains tax? Thought we were supposed to lose money
You guys have money to lose?
Jokes on the bank, I'm losing their money.
Tax property taxes on any non-primary residence property. This is becoming landlords owning everything and vast majority unable to buy and forced to be renters
This is the desired endgame of our system. You're less likely to continuously bleed money and stay poor if you own land.
It’s like this in the UK. Average home price rise justifying increase in rents. Land banks become more valuable so rich landed gentry get wealthier. It also means that pension funds can rise rapidly (they invest heavily in real estate) so contributions can be less.
Landlords will increase the rent to pass on the higher property tax to the renter.
More accurate reporting would be to say that capital gains will be taxed like other earned income for higher income tax payers. I don’t get why passive income is taxed less than labor.
In case you’re curious: here’s an article from st Louis fed that explains both sides of the debate - why we should keep cap gains tax rates and why we should eliminate them. https://www.stlouisfed.org/publications/regional-economist/july-1995/should-we-ax-the-capital-gains-tax They miss a few key points on both sides of the debate but it’s decent for whatever side of the fence you sit on. Personally, I think our entire tax system needs to be reworked a bit, including capital gains. There should be a small benefit to capital gains over ordinary income to encourage investments over savings but it should not be so outlandishly outsized and we need to limit to step up in basis received for inheritance of securities.
Thanks for this. Thoughtful. Has no place here.
No worries - as a lawyer and Econ major, tax policy is one of my favorite nerdy topics. Should’ve probably became a tax attorney…
Pretty fair assessment, sadly most people wont read and just see “higher taxes = bad” When they make 23k working at dollar general
>When they make 23k working at dollar general But if you don't advocate for the millionaires and billionaires, how will you get them to accept you as one of their own so you can stop being just a "temporarily embarrassed" millionaire with no money?
Incentive to people with cash to yolo that money into ventures that might fail with the goal being these ventures might create jobs and further investments through CAPEX, wages, etc to expand versus the government having to do it themselves.
Nice, my negative portfolio is unaffected.
"would only apply to capital gains over $1,000,000" why wouldn't people vote for this? The wealthiest people are using all sorts of dodges to pay less tax than a minimum wage worker, yet low wage people vote for those who wish to keep it this way. Ridiculous
Because most Americans see ourselves as temporarily displaced millionaires.
Once I get my millions, then guys like me will have to watch out
Damn lots of multi-millionaires on Reddit today getting pissed about these proposed taxes
Only for those making more than $1M in annual income so not an issue here where the average investment income is -$63,222. Can we get a 40% tax rebate?
Oh you mean the top tax bracket that currently kicks in at about $500k depending on filing status? I guess Fox Business just didn't have room in the headline for it.