All Forum Posts by: Account Closed

@Steve Morris

Valid point that policy changes introduce churn and uncertainty. And true hopefully the stimulus is temporary and one time. But it’s also a huge temporary and one time number. Seems like something’s gotta give.

Also just pointing out, the top 1% control 40% of US wealth so paying 20% of taxes doesn’t seem that bad.

The rolling 12 month federal deficit as of June is $3 trillion. Keep in mind the federal government is spending $60 billion per month in extra unemployment benefits, on top if the $1200 one time stimulus from the Cares act.

Most of this stimulus goes to help lower income / higher impacted people, who happen to be predominantly renters. So a lot of federal spending is probably keeping rent coming. Oh right and also homes over peoples heads and food on their table.

So yeah, if very wealthy people who probably benefitted from federal stimulus to keep rent coming might need to lose the ability to defer capital gains on real estate like every other type of investment, is it really that crazy?

@Steve Morris True but what’s your point? You can buy real estate with SDIRA or SD401k money.

I think we are talking about non-IRA /401k money here.

@Shiloh Lundahl Perhaps it would de-incentivize some very wealthy people but there’s plenty of others who don’t make $400k/yr to fill the gap. Fundamentally comes down to philosophy on income inequality.

Also everyone pays capital gains tax without deferral on other investments and securities.

@Nicholas Aiola

How does one determine whether the fund’s income is passive or active?

Also to clarify does it matter if the losses are in Box 2 and the gains in Box 1?

Thank you

@Nicholas Aiola Can gains reported on line 1 of a K-1 for a HML debt fund be offset by passive real estate losses?

Nicholas Aiola thanks!

Nicholas Aiola Does it matter how the actual taxing authority handles the prepayment? In this case my understanding is the taxing authority itself holds prepayments in their own escrow-like account until the next year’s assessment is known. So it sounds like it goes into an escrow account, but it’s the tax authority’s account vs normal lender managed escrow account, which is what I think you are referring to.

Nicholas Aiola Is prepayment of next year’s property tax deductible this year, even in cases where the taxing authority handles prepayments by effectively holding that money in an account until the next year’s assessment is known (timing late next year) at which point the prepayment is applied?

Michelle Rosado I've anecdotally heard of pervasively high 401k fees, but I am admittedly uneducated on what is typical for the market. My employer's 401k fees range from 0.02% to 0.08% depending on the fund but that's obviously a single data point. Is the typical fund's fees really as high as 2.5% or is that more an outlier? Not arguing, it's an honest question.