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The IRS already knows this. It was 2011 or 2012 when they made brokerages start reporting cost basis. Unfortunately, it's not always correct and so one has to file yet another form. Really annoying.
There we go and interesting it's off, I wonder why. It's a pretty simple thing for a computer to calculate.
You make it sound so easy and simple and it's predicated on the IRS doing a good job from their end. Might work for a burger flipper with a W-2 but it ain't gonna work for a business owner or others with a little complexity to their taxes.
I also live in a high COL area and I can't believe that people aren't factoring in the deduction in their real estate purchase. I am looking at homes where the interest+prop tax deduction is genuinely worth almost $1,000 per month. That's a free Maserati... or more realistically, it means that my budget can allow me to buy a considerably more expensive house.
If I have $5,500 per month to commit to a monthly payment, but the government gives me $1,000, I can effectively afford $6,500 per month. Around here, that's a whole other class of home.
Of course I am a reasonably prudent person, so I've decided to keep my budget at $5,500 per month but to use the $1,000 in other pursuits, but it will definitely weigh in on my purchase. It also weighs in on my decision of renting vs. buying- my rent right now is $5,500 per month but none of it is deductible; if I were to buy the home I'm renting and structure the transaction so that my mortgage payment were $5,500 per month, I would effectively be paying only around $4,500 per month.
I can't stand the mortgage interest/prop tax deduction. There is no reason that the government should be distorting my rent vs. buy calculation by such a large degree. I am certain that home prices will drop once the deduction is removed as most buyers will have to drop down a level in price range.
You are not the target demographic, you'd be in the top % of filers if you are looking at $5k mortgage payments. The median HOUSEHOLD income in the US is less than that. So you would potentially be hit with this, there are always losers when so many come our ahead.
But that's my point, the unwashed masses are getting their pitchforks out to save $50/month which is more than recaptured on the back end with the standard deduction increase. Meanwhile the wealthy get a humongous deduction. You'd think they'd be calling for an end to this wealthy welfare but no....idiots.
You make it sound so easy and simple and it's predicated on the IRS doing a good job from their end. Might work for a burger flipper with a W-2 but it ain't gonna work for a business owner or others with a little complexity to their taxes.
Ask your wealthy neighbor what he thinks.
Exactly.
Listening to some of these people talk about taxes is hilarious.
"I really think we need to reduce the admin costs in healthcare. We can just perform surgery with some scissors. A few snips and close it up with some string. Easy and done! They're out in 10 minutes"
It's obvious, they have no expirence with working with the IRS or returns with any sort of complexity, working with efile errors, and lack even the most basic understanding of why the tax code is the way it is.
You make it sound so easy and simple and it's predicated on the IRS doing a good job from their end. Might work for a burger flipper with a W-2 but it ain't gonna work for a business owner or others with a little complexity to their taxes.
Ask your wealthy neighbor what he thinks.
No one ever said it would. But there are tens of millions of households it would simplify taxes for.
I'm more concerned with the economy as a whole. The less friction we add to our daily lives the faster our economy will grow.
The wealthy neighbor wants to pay less taxes just like everyone else. Doesn't mean we should let them.
Listening to some of these people talk about taxes is hilarious.
"I really think we need to reduce the admin costs in healthcare. We can just perform surgery with some scissors. A few snips and close it up with some string. Easy and done! They're out in 10 minutes"
It's obvious, they have no expirence with working with the IRS or returns with any sort of complexity, working with efile errors, and lack even the most basic understanding of why the tax code is the way it is.
70% of tax filers take the standard deduction. Under Trumps plan it would be 95% I've read. An increase of 25% which is tens of millions.
There we go and interesting it's off, I wonder why. It's a pretty simple thing for a computer to calculate.
In the case of employee stock plan we were told that the IRS requires a value to be reported that's incorrect. I wonder if those folks talk to each other?
Come'on now, you made it sound like everything is rigged. I know plenty of kids who went through the same public system and didn't always come out ahead. My friends live in a crappy neighborhood near LA, both of his girls who are Asians got into Stanford. I personally never believe their parents were super bright as in winning any genetics lottery in the brain department, except maybe in the looks department, their mom was very good looking when she was young.
Look at any study on socioeconomic class mobility in the United States. The Economist did a huge spread on it last year. If you're in the bottom quintile, your odds of escaping are really low. If you're born to the top quintile, the odds are really high that you'll remain there. The US now has the worst socioeconomic class mobility in the first world.
Citing specific examples in a population of 323 million is statistically invalid.
Be careful what you ask for because you may one day get it. So you would really like the IRS to tell you how much you owe and you would blindly send payment, no questions asked?
Maybe you should read what I wrote. If you disagree then you need to change.
Last edited by NewbieHere; 08-16-2017 at 12:57 PM..
Look at any study on socioeconomic class mobility in the United States. The Economist did a huge spread on it last year. If you're in the bottom quintile, your odds of escaping are really low. If you're born to the top quintile, the odds are really high that you'll remain there. The US now has the worst socioeconomic class mobility in the first world.
Citing specific examples in a population of 323 million is statistically invalid.
The minute you mentioned the Economist then your credibility may be questioned. My husband is thinking of discontinue his subscription of the Economist. They have been wrong on multiple issues. Even the Thomas guy that most newspapers cite for his income inequality's article repeatedly saying that people are misquoting him. I'm not citing anecdote to prove my point. But I think the US is the best in mobility comparing to other countries in Western countries. We have the best in retirement satisfaction according to a recent USC survey.
This is why more people want to migrate legally or illegally to USA and not other countries.
In fact, another anecdote, all of my nephews and nieces from the UK, actually my husband's nephews and nieces would love to migrate here, UK is the home of the Economist, they live in near poverty or poverty as I and my kids see from across the pond. Even with free healthcare there vs here. In fact two are already here. Another couple is debating to come here. If not for the fact that one doctor has to be recertified again, she would have been here in a hard beat.
Last edited by NewbieHere; 08-16-2017 at 12:57 PM..
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