Posted on 08/31/2024 7:20:23 PM PDT by Mr. Mojo
Nice farm you got there.
Joe’s China benefactors would like to buy it.
Another likely outcome is that the value of many assets will plunge to $0 because nobody would want them. I would put my small company on the market just to demonstrate that I got no offers on it … so I can credibly report that it has had no gain in value.
Go for it. If it is not a tax on income. A direct tax must be apportioned. ergo a head tax.
As a direct tax it would have to be apportioned.
I believe that we already tax unrealized foreign exchange> Corporations cannot hold their income overseas but are taxed on it.
The Supreme Court ruled that Congress has the power to tax unrealized foreign gain, so it is just a short step from taxing unrealized foreign income to taxing unrealized domestic income. I will find the case tomorrow.
One question - say the unrealized gain in $1, and you pay the tax on it. Do they tax it again the following year when it hits $10? Or allow a credit if a worldwide depression follows the passage of this law, and all we have are unrealized capital losses?
That already happens with real estate. Property gets reappraised by the county, which demands increased property taxes based on what you could realize if you sold the property, even though you are not selling it and not realizing any gains. Here in California, Prop 13 was passed decades ago to limit reappraised taxes to 2% more a year. Lawmakers continually try to get around that, and they did a few years ago.
My daughter got dinged with a more than 5% property tax this year. Because with the new law, they say her reappraised value was less than 2% a couple years ago due to a temporary decline in home values, but as home values went up again they tacked on the “missing increases” to the 2% limit and it totaled 5% now.
Politicians are evil and try to steal your money any which way they can. Unrealized gains you haven’t gotten, but taxed on it and you pay or lose your home.
Wish they put as much effort in figuring out how to eliminate waste and reduce spending as they do in dreaming up new taxes. 😑
This is literally the worst idea I’ve ever heard in my life. Trump should hammer the unrealized tax proposal at every opportunity, it’s something that people will intrinsically know is ridiculous.
If you bought a house for $300,000, and the value rose to $500,000 a couple years later, you could be stuck paying tax on the $200,000 of gain even as you’re struggling to make mortgage payments. At a 25% tax rate, it would cost you $50,000 in federal taxes.
And it would be year after year after year.
Rand Paul knows how to scrape up some extra cash... by slashing fraud, waste, and abuse along with outlandish budgetry line items...
Schumer is the toilet clog on most budgets submitted.
I have yet to see anyone discuss adjustments for inflation. Example, you purchased a house (or stock) for $100,000 in 2000. Today it is valued at $182,000. The government said you made $82,000 gain! But did you? The $82,000 is the effect of inflation on your original investment. So you have Zero economic return, you have just broken even due to inflation. How will the government handle this? Especially since the government has their foot on inflation to address their massive borrowing!
Missing the point.
The idea is designed to confiscate all wealth and means of production.
On purpose.
Akin to the government wanting to collect taxes for the lottery tickets that haven’t won anything yet. With Harris, it might get down to that level.
I think the question is this:
If I have a stock that I bought for $100 and next year it grows to $200, they will tax the unrealized gain of $100. If the price remains $200 for the following year, will they tax that unrealized gain of $100 again?
Here is another question: What about Net Unrealized Appreciation?
If I have a stock in a qualified before-tax plan (e.g., an ESOP) that has a cost basis of $20, and many years later when I retire I apply the NUA treatment on that stock, what happens?
Net unrealized appreciation allows the stock holder to convert the asset from before-tax to after-tax status by paying ordinary income tax rates on the original cost basis value of the stock (in the above example, on the $20 per share). Once the stock becomes an after-tax holding, the owner would pay the long-term capital gains tax on the remaining value (again above, on the $80 of capital gain) once the stock is sold.
Taxing unrealized capital gains would nullify the NUA if the holder would pay ordinary income tax on the cost basis and then must IMMEDIATELY pay the capital gains on the remaining after-tax amount.
-PJ
This is the result the Dhimmicraps want.
Yep.
You’re being taxed on fantasy money, income someone speculates you could have made but didn’t. And guess who gets to decide what that is?
Also, when you sell something and take an actual loss, you can only deduct a certain amount each year, not the whole amount. It takes YEARS to get the money back from your over paid taxes.
It’s theft, plain and simple.
Same here.
Seems like everyone I know is in that boat.
If it is under mark-to-market rules, then your basis steps up after tax. So your $1 gain on the $1 asset is taxed and the basis is now $2. When it rises to $10, you get taxed on $8.
As to losses, net capital losses are currently capped at $3,000 with the excess carried forward. So, if your $300k gain tanks to zero, you can recoup your losses over the course of 100 years.
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