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Old 09-29-2020, 05:03 PM
 
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Quote:
Originally Posted by Thatsright19 View Post
If the building appreciates that much, it would be sold at a pure gain. 39 years of basis fully depreciated plus the 390 million of proceeds.

Your “revenue” isn’t revenue for one thing. If you’re talking about money from your job, it’s either salary or hourly. And thus, you have no risk of loss. Your mortgage and insurance also has absolutely nothing to do with creating that income.

A business gets to deduct those items because those items are used in the PURSUIT (aka there’s risk)...of profit. You have no such risk as an employee and you’re not putting wear on your assets to pursue that income.

A tenfold increase over 40 years is not that unusual.



It is absolutely a risk that one's expenses may exceed one's salary revenues.



The mortage has everything to do with the income. Not many people can hold down a professional job if they are living under a bridge.


You cannot perform as an employee unless you are alive. Having a place to sleep, clothes to wear, food to eat, and healthcare are necessities to remain alive.
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Old 09-29-2020, 05:11 PM
 
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The issue sits at if the losses over the years and the initial values are accurate, with Trump that is
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Old 09-30-2020, 03:47 PM
DKM
 
Location: California
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Did anyone mention that Trump's tax law change included a limit to taking losses back and limited them overall? Kind of ironic... but the coronavirus legislation changed some of that.
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Old 09-30-2020, 05:18 PM
 
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Quote:
Originally Posted by DKM View Post
Did anyone mention that Trump's tax law change included a limit to taking losses back and limited them overall? Kind of ironic... but the coronavirus legislation changed some of that.
I mean, his contribution to the bill was probably squiggling a signature on it. The Congress passes the bill and an army of people create it. It’s not like he understands 90%+ of the tax code. I’m not sure I’d call it his tax bill.
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Old 09-30-2020, 09:31 PM
 
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Quote:
Originally Posted by oceangaia View Post
At the end of that 39 years the company isn't left with a building with a zero market value, in fact it will likely be a $390 million dollar value.


As an individual, I sure wish I could deduct my mortgage and insurance and utilities from my revenue to determine taxable income.
As an individual, you get a standard deduction that, for a married couple, generally exceed the mortgage interest and taxes you paid. Your utilities aren't being used to earn income.
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Old 10-01-2020, 01:12 PM
 
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Quote:
Originally Posted by WRM20 View Post
As an individual, you get a standard deduction that, for a married couple, generally exceed the mortgage interest and taxes you paid. Your utilities aren't being used to earn income.

Why can we only deduct mortgage interest? Do companies only get to deduct interest on buildings? My utilities are used to maintain life, without which there is no income. And why is my income being evaluated on a stand-alone basis? Oceangaia Inc. is in the business of Life and income is just one component of that, just like Windows 10 licensing is one component of Microsoft's business.
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Old 10-01-2020, 05:04 PM
 
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Quote:
Originally Posted by oceangaia View Post
Why can we only deduct mortgage interest? Do companies only get to deduct interest on buildings? My utilities are used to maintain life, without which there is no income. And why is my income being evaluated on a stand-alone basis? Oceangaia Inc. is in the business of Life and income is just one component of that, just like Windows 10 licensing is one component of Microsoft's business.
That's not how the tax laws are written. Write your representatives if you want change.

Corporations get to deduct all legitimate expenses related to generation of revenue.

Personally, I would allow you to deduct your interest, utilities, etc, but you would have to keep perfect records, and you would lose the standard deduction, just like a business. I would also make you pay tax on the full gain from sale of a house, not allowing the current exclusion, just like a business. You would rapidly get tired of that.
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Old 10-01-2020, 05:20 PM
 
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Quote:
Originally Posted by WRM20 View Post
That's not how the tax laws are written. Write your representatives if you want change.

Whatever gave you the idea I was talking about "how things are"? I was talking all along about "how things should be" in my opinion. Thus my statement "I sure wish I could deduct my mortgage and insurance..."


And if we're allowing deductions "just like a business" then I would be deducting not just the mortgage interest but also the principal, and food and clothing and insurance and transportation. What capital gains? Maybe once in a lifetime does one "downsize" by not putting all proceeds from a sale of one house into the purchase of another house.
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Old 10-01-2020, 05:49 PM
 
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Quote:
Originally Posted by oceangaia View Post
Whatever gave you the idea I was talking about "how things are"? I was talking all along about "how things should be" in my opinion. Thus my statement "I sure wish I could deduct my mortgage and insurance..."


And if we're allowing deductions "just like a business" then I would be deducting not just the mortgage interest but also the principal, and food and clothing and insurance and transportation. What capital gains? Maybe once in a lifetime does one "downsize" by not putting all proceeds from a sale of one house into the purchase of another house.
to be comparable, you wouldn't be deducting the principal, you'd be depreciating the home. The rollover of gains by purchasing a more expensive home went away in 1997 so you would be paying tax on the gain (which would also include recapturing the depreciation you took).
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Old 10-01-2020, 06:24 PM
 
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Quote:
Originally Posted by SuiteLiving View Post
to be comparable, you wouldn't be deducting the principal, you'd be depreciating the home. The rollover of gains by purchasing a more expensive home went away in 1997 so you would be paying tax on the gain (which would also include recapturing the depreciation you took).

Is that how it works with businesses? If Target sells a couple stores do they pay capital gains tax on each of those specific sales even if they purchase a dozen others? Is the accounting done individually per store or as a net gain/loss for the company? Once again, I think individuals get the shaft by not being able to offset gains with losses.



How Corporate Capital Gains and Losses Are Reported and Taxed - Tax & Accounting Blog
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