patrick.net

WookieMan says

Not sure "Sparky" understands real estate and taxes.

He understands how they would work with an Unrealized Capital Gains tax...which you just admitted you don't understand but decided to rant about this anyway.

WookieMan says

This sarcasm?

I am just flat going to troll your ass because I am so fucking sick and tired of PatNetters refusing to exhibit critical thinking skills or commen sense before commenting on something.

Here is a radical thought: Try researching something you don't know before shooting your mouth (inaccurately so) off about it.

Woah everyone! Stop the car! This concept is AMAZING! Why didn't anybody think of this before? Holy shit! This might even eclipse the invention of Fire and the Wheel!

Or, if you want to insist on pulling a TPB on this because it hurts all over the doll called Your World View, then fuck it: Yeah, it's sarcasm, ok. Sparky doesn't know shit. The End.

Yo @Ceffer

Sorry to pull you into this. But I just noticed you Liked that screenshot Wookie is struggling to understand. I assume you get the context?

If so, consider taking a crack at filling Wookie in please? You'll prolly do a better job at it right now than me.

On the other hand, don't blame you if you don't want to, either.

I get the point that it is more 'inflation taxation', which seems to be the point, whether realized or unrealized for a particular individual(s).

Beyond that, of course, it depends on circumstances. I will be neutral and say you both have a point, LOL! There is a one time capital gains 'exemption', but you have to 'claim' it, which not everybody does between transactions. I am not certain with the costs in California I will ever claim it because costs are so high for anything nice, we seem to buy up in cost rather than down, unless we move away to a much cheaper place.

You do need to keep your receipts and include every single improvement to deduct from your 'capital gains' bolus when you sell to reduce that liability. From California, you might very well wind up exceeding the exemption and have to pay taxes, but you also have two years to put your equity towards a new home of equal or greater value, so the equity does tend to stay 'locked up'.

I suppose one upside is that when your home goes up and you are getting very old, you can get more on a reverse mortgage for regular payments from the inflated home.

I guess I can be shat upon by all, now, instead of shatting upon one another.

Unrealized Capital Gain taxation means instead of paying cap gain taxes on sale, you 'pay withholding' during the lifetime ownership of the asset.

Similar to withholding from your paycheck even though you really owe the taxes at the end of the year.

If you took an unrealized loss later, supposedly you would get it back as a tax credit in that later tax year, after applying to your other tax liabilities, if any.

That was the bullshit Treasury told SCOTUS in a very limited case involving an already existung unrealized gain tax of overseas assets and SCOTUS bought that bullshit in January when it ruled on the case.

The libtard in that screenshot Matt Huang posted an example of how it would work involving stocks. He obviously spun this in a way to minimize opposition.

Sparky took that example and applied it to R/E. And obviously it was not in a way Matt the Libtard liked.

Or anyone else, for that matter.

Hence, the shit sandwich:



Biden is supposedly going to add this to the upcoming 2025 budget bill. To apply ONLY to assets above $100 million or so in value.

Dunno what Kamala would try to do in FY2026 - FY2028. But I am sure as shit Trump wouldn't push for this.

But that is how it starts. Like the income tax originally only applied to the top 5% or so back in 1914.

Yes. It's insane. But that is the Left for you. Also, government debt is out of control or soon will be.

Even the GOP will entertain this before cutting spending. Although things would get pretty bad if starts to hit middle class homes sooner than later.

DemocratsAreTotallyFucked says

Or anyone else, for that matter.

Hence, the shit sandwich:

OK, I get it now ( I think). Thanks. The withholding on unrealized gains is a priori robbery, rather than the advantage in the delay of realizing the asset when convenient or strategic for taxes.

Your unrealized withholding may be more than you can afford to keep the inflated asset. It isn't really a withholding, it is tax extortion (government downpayment tax lien) against your asset, since it is money that is sacrificed and doesn't work for you.

Ceffer says

Your unrealized withholding may be more than you can afford to keep the inflated asset. It isn't really a withholding, it is tax extortion (government downpayment tax lien) against your asset, since it is money that is sacrificed and doesn't work for you.

Exact same can be said about your income tax withholding. Income taxes you owe are not considered an indirect tax (transaction) but a direct one, like applied to other assets.

The 16th Amendment didn't change that definition. It only exempts direct taxation of it from the Apportionment Clause.

WookieMan says

Your house isn't taxed until you sell it.

Odd, because my property taxes just went up over $2,000 per year based on houses in my county being reassessed to sync with inflation.

HeadSet says

Odd, because my property taxes just went up over $2,000 per year based on houses in my county being reassessed to sync with inflation.

That is one thing California has over most of the rest of the nation, Prop 13.

HeadSet says

WookieMan says

Your house isn't taxed until you sell it.

Odd, because my property taxes just went up over $2,000 per year based on houses in my county being reassessed to sync with inflation.

Tax on the sale. Don't be that obtuse to act like you didn't know what I was talking about. I said the word sell.

Also $2k increase in a year means you are living in a $2-3M house regardless of state. That shouldn't be a big deal in that case if you can afford that house. Even on that expensive of a house $2k would be a lot in one year coming from someone in the 2nd highest property taxed state. Not buying it unless there was a major school district referendum or something.

WookieMan says

Also $2k increase in a year means you are living in a $2-3M house regardless of state.

WRONG

WookieMan says

Not buying it unless there was a major school district referendum or something.

WRONG AGAIN.

You do not know what you are talking about.

Here is the assessment for a neighbor's house very similar to mine:





Notice that the taxes went up over $2,200 because his assessment increased by $340,400. This assessment is entirely from inflation. Mil rate actually decreased by one penny from .84 per hundred to .83.

Not inflation, but devaluation of the dollar…

ForcedTQ says

Not inflation, but devaluation of the dollar…

Isn't that what inflation is, the devaluation of the dollar?

ForcedTQ says

Not inflation, but devaluation of the dollar…

Devaluation of the dollar only impacts the dollar price of other currencies.

And since nobody pays their property tax in pesos or euros....

DOGEWontAmountToShit says

Devaluation of the dollar only impacts the dollar price of other currencies.

A devalued dollar buys less of everything, such as gas, food, property, and other currencies.

HeadSet says

A devalued dollar buys less of everything, such as gas, food, property, and other currencies.

Nope. It is a term reserved for currency exchange prices.

And the dollar is trading higher, not lower.

And it will probably go even higher if Trump manages to put a real dent in imports.

HeadSet says

WRONG AGAIN.

You do not know what you are talking about.

Here is the assessment for a neighbor's house very similar to mine:

I do. And not wrong. I'll keep it short. Did you appeal you tax assessment? If you didn't you're wrong. Appeal and you'll learn.

HeadSet says

WookieMan says

Also $2k increase in a year means you are living in a $2-3M house regardless of state.

WRONG

WookieMan says

Not buying it unless there was a major school district referendum or something.

WRONG AGAIN.

You do not know what you are talking about.

Here is the assessment for a neighbor's house very similar to mine:





Notice that the taxes went up over $2,200 because his assessment increased by $340,400. This assessment is entirely from inflation. Mil rate actually decreased by one penny from .84 per hundred to .83.

Next time you people decide to shit on California and our Prop 13 - remember, we have both THE WEATHER and THE PROP13. 🧌

RWSGFY says

Next time you people decide to shit on California and our Prop 13 - remember, we have both THE WEATHER and THE PROP13. 🧌

And higher prices because of it. If you made gains and realized them, awesome. You can't buy in CA and live even remotely affordably. You have an exodus. The prices will drop. I'm not a housing doomsday guy, but it's coming for you guys if you own and a bunch of hipster cities outside the state.

WookieMan says

Did you appeal you tax assessment? If you didn't you're wrong. Appeal and you'll learn.

You are wrong again. I spent an hour on the phone speaking with the county assessor himself. He knew every detail about my house and my assessment was not going to change. We had a very civil conversation about my assessment and other real estate issues.

RWSGFY says

Next time you people decide to shit on California and our Prop 13

I do not blame California, and I think Prop 13 was necessary because of the unique rapid house price increases in that state. I blame Bidenflation that raised the prices of everything including my local assessment. No point in shitting on California, as you have plenty of street dwellers taking care of that.

Prop 13 Ponzi scheme doesn’t save new buyers to pay 20 to $50k property taxes in bay area, a 100 times higher than the previous owners!

Blue says

100 times higher than the previous owners!

Which would be the case in every other state.

We were talking about property tax increases inflicted upon current owners.