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Old 01-09-2017, 09:38 AM
CoachTil CoachTil is offline
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Capital gains question

Anybody out there a CPA? I have a question on real estate capital gains, if you wouldn't mind shooting me a PM I'd greatly appreciate it.

Thanks!
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Old 01-09-2017, 10:15 AM
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clrussell clrussell is online now
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Coach you be on the rock this year? Need to meet up if so
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Old 01-09-2017, 10:19 AM
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Mastercraftdave Mastercraftdave is online now
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Originally Posted by CoachTil View Post
Anybody out there a CPA? I have a question on real estate capital gains, if you wouldn't mind shooting me a PM I'd greatly appreciate it.

Thanks!
Let it to the government to tax you on the money that you make on a sound investment. Just like they tax the hell out of you on Bonuses. Always taking from the working man.
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Old 01-09-2017, 10:44 AM
CoachTil CoachTil is offline
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Corben,

We are breaking ground on building a new house this week. Hoping to have the house done by mid-May. As long as it's finished by then I'll be on the Rock as much as my schedule allows. I can't wait to see your boat!

Not only was it a sound investment, but a lot of "sweat equity" in the house.
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Old 01-09-2017, 11:10 AM
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clrussell clrussell is online now
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Corben,

We are breaking ground on building a new house this week. Hoping to have the house done by mid-May. As long as it's finished by then I'll be on the Rock as much as my schedule allows. I can't wait to see your boat!

Not only was it a sound investment, but a lot of "sweat equity" in the house.
Awesome. If you need any help just hit me up. Im not scared of hard work
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Old 01-09-2017, 11:33 AM
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moosehead moosehead is offline
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Nice, creating value is a great thing, congrats. While Uncle Sam takes some, at least for the time being it is at a significantly lower capital gains tax rate than ordinary income (about half depending upon tax bracket). Cheers.

Last edited by moosehead; 01-09-2017 at 11:45 AM.
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Old 01-09-2017, 12:11 PM
jharmon203 jharmon203 is online now
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Originally Posted by Mastercraftdave View Post
Let it to the government to tax you on the money that you make on a sound investment. Just like they tax the hell out of you on Bonuses. Always taking from the working man.
Yeah this greatly infuriates me. So you were intelligent enough to invest in something with your POST TAX dollars. However, the govt needs a piece of that tooI guess. I understand the idea that capital gains can be a great way of legal income tax evasion, but the only people that can do this well are the one's that aren't necessarily needing that weekely paycheck.

I am no CPA by any means, but what would be wrong with saying no capital gains tax if you are under say 250k per year without deductions? Any CPA's find something glaring about that?
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Old 01-09-2017, 12:34 PM
robisjo robisjo is offline
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Originally Posted by CoachTil View Post
Anybody out there a CPA? I have a question on real estate capital gains, if you wouldn't mind shooting me a PM I'd greatly appreciate it.

Thanks!
I'm a CPA. Shoot me a PM
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Old 01-09-2017, 12:43 PM
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JBaker JBaker is offline
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It's philosophical. There's a growing population of wealthy (which make up the majority of capital gains creators) that favor these policies. For example, Bill Gross - perhaps the most famous bond investor of all time - has been advocating "wealth should always be taxed at a greater rate than work." Gross is ancient and his views are largely shared by Gates and equally ancient Buffet. But there is a growing generation of younger multi-millionaires and billionaires (Zuckerberg, et al) who are increasingly pro-wealth redistribution and are concerned about the contracting middle class/income inequality. One of the more popular ways to address this is via capital gains and the death tax - both of which are taxing "post tax dollars" as you put it.

I doubt the amount of capital gains tax collected on earners <$250k is all that great, which is a double edged sword. In other words, lowering the cap gains rate for those earning <$250k is unlikely to put a huge dent in tax revenue, but also unlikely to significantly spur economic activity. So it becomes very back burner...especially since many in that tax bracket already get the full benefit of cap gains tax shelters such as IRAs and Roth 401ks.

In the near-term, if Obamacare is repealed, the cap gains rate could dip for top earners. But longer-term, the pressure seems to be biased upward, especially if the national debt escalates over the next four years as advertised by the CBO.
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Old 01-10-2017, 03:10 PM
jlane330 jlane330 is offline
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Originally Posted by jharmon203 View Post
Yeah this greatly infuriates me. So you were intelligent enough to invest in something with your POST TAX dollars. However, the govt needs a piece of that tooI guess. I understand the idea that capital gains can be a great way of legal income tax evasion, but the only people that can do this well are the one's that aren't necessarily needing that weekely paycheck.
I share your frustration on this! I also view it as a one way street, the gov gets to tax the upside, but not share in the downside when an investment goes bad. What a nice position to be in for the gov.

I know I'm generalizing here, but it sure feels that way.
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