Let's play the rich get everything. The rules are the rich get everything. participation is mandatory.
Let's play the rich get everything. The rules are the rich get everything. participation is mandatory.
Did I say mandatory? I meant optional! You're "free" to die in a cardboard box under a freeway as a market capitalist scarecrow warning to the other ants so they keep showing up to make us more!
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I don't agree with unrealized gains taxes in general, but the instant they are used as collateral, or if value in any way is extracted from them (even loan value), they become realized gains, and should be taxed.
I don’t agree with unrealized gains taxes in general, but the instant they are used as collateral, or if value in any way is extracted from them (even loan value), they become realized gains, and should be taxed.
What you're suggesting would also mean you're advocating for middle class homeowners to be taxed on a full value of a Home Equity Line of Credit (HELOC) even if they haven't spent a dime of it yet. Was that your intention?
Homeowners are excluded from capital gains tax for the first 250k for individual filers.
I believe you're referring to rules on sale of a home where there is a capital gain, meaning you bought the house for $100k and sell it for $350k, no cap gains taxes. We're in uncharted waters with what @bastion@feddit.nl is proposing. That user (possibly) suggesting it for HELOCs too.
Okay but you can just apply the same logic to a HELOC. If you get a 30k HELOC for a bedroom renovation then it does not count towards capital gains tax.
Even normal capital gains taxes have brackets.
Okay but you can just apply the same logic to a HELOC. If you get a 30k HELOC for a bedroom renovation then it does not count towards capital gains tax.
Wouldn't this be a double standard if we're applying @bastion@feddit.nl 's logic? The rich would get taxed on loaned money but the middle class wouldn't?
that's like the point of the entire system? I mean, I don't want to go back to the 1800s corporate baronies that defined most industry at that point in time
That's generally how progressive tax brackets work, yes. Technically speaking if I rich person wants to take out a 30k HELOC they'd also not get taxed on it.
The rich would get taxed on loaned money but the middle class wouldn’t?
Oh no... Anyway.
This is how... EVERYTHING works... Income tax brackets, 401k limits. I thought this was pretty obvious, from each according their ability and all.
Oh no, I guess our legislators' hands are tied. It's not like they could just put an exemption for a person's first home into the law or anything.
Oh well.
They didn't set out their whole tax platform for their presidential bid friend. We can trivially blow down your straw man with a primary residence exemption or, you know, tax brackets.
Simply tax it as if it underwent a buy/sell/trade. Capital gains and losses are accounted for in that at the time the value is utilized. They are tracked, and you don't pay them later.
Reasonable home ownership (only home) could be exempted.
Wait...I pay taxes on my HELOC....