rules are rules, ya don't like it, pass a flat tax.
Posted on 10/14/2018 3:15:33 PM PDT by Innovative
A Saturday report from The New York Times found Jared Kushner, President Donald Trump's son-in-law and senior adviser, paid little to no federal income taxes from 2009 to 2016 using legal tax mechanisms.
An IRS policy known as depreciation is a deduction Kushner Cos. used to diminish its taxable income on properties largely bought with borrowed money.
Though not illegal, the filings show how real estate tax codes leave room for profitable maneuvering.
The New York Times found Jared Kushner, President Donald Trump's son-in-law and senior adviser, paid little to no federal income taxes from 2009 to 2016 — without breaking the law.
(Excerpt) Read more at businessinsider.com ...
Dems chasing another vapor trail.....
And, no, "enterprising reporter, "NOL" is not a mis-typing of "LOL"
How did they get copies of his tax returns?
The “loop holes” in the tax code regarding income earning real estate, from single-individual-owner residence that is rented out, to commercially owned residential, comercial business property and every other real estate, is a “bipartisan” affair - as far as who has lobbied for the favorable real estate tax provisions.
In addition to all the commercial and investor interests who would lobby against changing the rules regarding real estate there would be millions of individuals joining them who just own one or a few rental-income houses as part of their personal investment.
I might even disagree with with a few of the real estate tax provisions, on philosophical grounds, even in spite of having used them in the past. My point here is just to say the popularity of those provisions extends across the population and far beyond the ultra rich investors. Both major parties have supported them and their popularity has increased as the economy grew and more and more upper middle income folks began to invest in real estate and take advantage of the favorable tax rules it has.
The tax provisions Kushner used are used by millions of people spanning many income levels.
If the NYSlimes really wanted to go after the favorable tax provisions given to real estate, they could have done so with examples all across the political and income spectrum. But they really just wanted to do a biased political report, and no a true unbiasd “expose” of the tax code.
For myself, I am a “flat tax” advocate and would prefer a low flat income tax with no deductions, exemptions, exclusions or credits - just a flat tax collected any time any kind of payment to someone was made, for investment income earned, or labor, or product or services rendered. The tax code for that would be just a few pages.
Another thing. When a taxpayer takes depreciation, they must calculate a gain on by reducing their cost basis by the amount of depreciation they took or should have taken. So even if the taxpayer did not take depreciation as allowed, they will be treated as if they did take depreciation and pay taxes on the amount taken.
See #37
It’s only illegal if conservatives do it. That’s the stubborn thing about laws.
Depreciation helps the average taxpayer match his cash flow from a rental property to his taxable income. Most real estate investments are financed. The law doesn't allow a deduction for the principal portion of a mortgage payment only the interest. Depreciation is a paper deduction that helps lower the investors income so that on average the income reported for income taxes will be the same amount of income generated by the rental property over the life of the property.
This is common in real estate dealings. You can lose money for years on a large project before it finally pays off, IF it pays off. The IRS got rid of some of that with its phantom income provision, which is a real pain in the neck.
ANYONE with an income can do this. A teen with a lawn mowing business can ‘depreciate’ the wear and tear on his mower and his pick up truck.
I’m certain Socialists are mad that people claim as many deductions on their W4 Forms as legally possible. I always did!
WTF give Mother Government YOUR hard earned cash to p*ss away on things you find morally reprehensible?
Is it worth funding The Beast to get a tax refund because you can’t manage your own finances? Never could understand that illogic! ;)
“Depreciation helps the average taxpayer match his cash flow from a rental property to his taxable income. Most real estate investments are financed. The law doesn’t allow a deduction for the principal portion of a mortgage payment only the interest. Depreciation is a paper deduction that helps lower the investors income so that on average the income reported for income taxes will be the same amount of income generated by the rental property over the life of the property.”
Yes, I know what it does. I used it when I owned rental income property.
But, unlike depreciation for things that actually do depreciate, like machinery for instance, the “tax savings” from that depreciation is a consequence and it is allowed because actual depreciation does occur. But “depreciation” of real estate is not someting that naturally occurs, minus poor maintenance or a major down tutn in a real estate market. Applying depreciation for real estate, for tax purposes, is not derived, unlike machinery, because any actual real depreciation of value can be assumed - it is PURELY a provision for tax avoidance, which is not a mere consequence, but apparently its only purpose.
I do not know the history of when real estate depreciation obtained its role in the tax code, but unlike most other allowed depreciation it is not rooted in an actual expected value depreciation.
But like I said, I am for a flat tax to begin with and with zero deductions, exemptions, exclusions or credits - just everyone paying a simple low flat tax.
See my 37 above. It has been with us since the inception of the income tax.
rules are rules, ya don't like it, pass a flat tax.
Put every member of congress under the same microscope. We will have to elect a new government.
No one should pay more taxes than they are legally required to. Governments at all levels have proven that they are extremely poor stewards of the people’s funds.
Creative? Hell, I’m an engineer and I can fugure the depreciation expense
I’ts not creative. It’s not rocket surgery
Business Insider is the enemy of business.
They like to try to deceive you by having a pro-business name, but they are pure left and red as a summer sunset.
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Correctamundo!
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“I’ts not creative. It’s not rocket surgery” <
Its built into the processor of the HP 16c.
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President Trump is way too smart to do anything tax-wise that might get his tit caught in the IRS wringer. The NYSlimes is a wishin’ and a hopin’. Not gonna happen.
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