Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
I have many posts and blogs about my extreme dislike for Income Taxes. I've been working on last years' return and I may end up paying something. That is very frustrating and I committ to work harder in the future to regain my rep! This AMT is commie! I feel better after venting. Rich!
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
16y
Yeah, well, there have been many years under the control of both parties when the AMT could have been indexed. Its become too much of a money maker, so I don't expect it to change regardless of who's in charge. I agree its a nasty tax.
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
16y
I will hate the VAT just as I hate the existing. What I really hate , is the way working hard benefits the lazy etc.
I plan on voting "other" in any poll or election. I'd love to see other actually win. Rich
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
16y
Yeah, well, there have been many years under the control of both parties when the AMT could have been indexed. Its become too much of a money maker, so I don't expect it to change regardless of who's in charge. I agree its a nasty tax.
Kansas City, MO · Member since 2010 · 34 posts · 5 votes
16y
The AMT is very nasty, but at some point they are going to have to change it. Over the last 5-10 years it has done way to much bracket creeping. If we wait another 10-15 to change without adjusting it in some way to inflation, we will have deterred way too much investment and some will have chosen to cut back on their amount of labor and earnings potential.
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
16y
The key is to get the income from needing to be reported on Schedule C to being reported on the front page of the 1040. All income and losses work counter to each other if reported on the front page.
There are ways to accomplish that. I just got the "scale" of income and write-offs out of balance on the front page.
The real estate write-offs only benefit front page, not schedule C. Rich
p.s. Disclaimer- I'm not an acct., seek professional advice,yada,yada,yada.
Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
16y
Don't look now, Rich, but the entire government is commie. The AMT is only the tip of the iceberg when it comes to taxes that are going to kill ANYONE THAT IS PRODUCTIVE. The Bush tax cuts are getting ready to expire. The just-passed "healthcare" (wealth redistribution) bill has a new 3.9% Medicare tax on unearned income (rental income, dividends, etc). The VAT is coming. Cap and Trade is coming (or the taxes will be imposed via EPA). Major corporations have announced HUGE expenses due to the Healthcare law - WHICH WILL BE PASSED ON TO THE CONSUMER.
A TOTAL ECONOMIC COLLAPSE is RAPIDLY approaching! I know that you're prepared, so am I.
Lexington, KY · Member since 2010 · 315 posts · 133 votes
16y
Rich,
I would t love to hear you ellaborate more on your tax saving strategies. It is something I am very interested in and cant find too much info besides websites that list the traditional RE deductions. What are some of your most effective strategies. And I know your not a lawyer or CPA, I don't care, I want to hear your opinions from your own experience,so you can skip the disclosure.
MikeOH,
You have been harping pretty hard on the end of times type of talk here in America. Do you think it is just America's downfall that is coming or the whole world -it'd be hard for me to name another country in better position than ours. Albeit we have plenty of problems but it is hard for me to believe the American apocalypse is here. Why aren't you selling any of your RE holdings and preparing by doing anything other than stocking up on canned food and ammo.
[[[.....It'd be hard for me to name another country in better position than ours......]]]]
Well, actually, Brazil is thriving, Chile is doing very well, Uruguay has no economic problems. Venezuela is doing OK economically (albeit, not so much socially)
The global economic melt down isn't actually global.
Real Estate Investor · Phoenix, AZ · Member since 2009 · 1k+ posts · 1k+ votes
16y
P NW and Bryan are referring to different things, I think.
If you take a snapshot of the various economies of the world, there is no doubt that the U.S. is a global leader in pretty much most metrics. This is presumably what Bryan is referring to.
If you take trends into account and project future growth, then we have cause for worry because growth is slowing and the obligations of our government are increasing. This is presumably what P NW and Mike OH are referring to.
I think we will need to substantially reduce the role of government and cut taxes in order to make the economy competitive enough to once again grow at a rapid pace. I am not expecting it to happen, though. :(
Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
16y
There are big changes in the works for 2010+ taxes. Tax brackets are set to change, estate tax is coming back, many credits are currently set to go away. The capital gains tax is likely to increase to 20% for many and higher for others. New incentives are hear to encourage certain social oriented spending without real economic growth.
If government spending doesn't slow down, the tax situation will become worse. I don't see how it would be possible to increase taxes enough while trying to grow the economy enough to pay for this increasing level of spending. Something will change in time what that something is only time will tell.
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
16y
Yeah...there are certainly problems, but claiming we are headed toward "total economic collapse" and that it is imminent is absolutely laughable IMO.
This behavior is rampant right now and it is a big part of the reason why our economy muddles through. All of the Chicken Little talking heads on TV are stirring up people's emotions and not focusing on the fact that we are STILL the richest and most powerful nation on the earth by a long stretch.
For those that are so fond of taking pot shots at our country I would invite you to renounce your citizenship and move to one of the other countries you think have it much better than we do.
I am all for concern and wanting to make our country better, but flailing your arms and making blanket statements about the world coming to an end are ridiculous and don't help at all.
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
16y
I think the something that will change Charles is that our currency's value will have to decrease. The government has a ridiculously high incentive to inflate away the debt and the inflation tax is what they will do it with.
Real Estate Investor · Phoenix, AZ · Member since 2009 · 1k+ posts · 1k+ votes
16y
Bryan, I have read the posts above and do not think anyone is taking potshots "at" the U.S. I only see various posters with various levels of concern with our prospects. I do not think any of the posters want anything other than what is best for the country.
I do agree with you that there are some dumb media people who make ill-informed pronouncements in a strident tone and stir up a lot of anxiety. But you must admit that the days of our fastest economic growth were also periods with a much smaller role for government in the economy. So there is a genuine reason to worry and be pessimistic about future prospects because I see no trend towards a smaller government.
P.S.
It is ridiculous to suggest that someone should move to a country merely because he or she thinks that country's economy is doing better than that of their homeland.
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
16y
It is also ridiculous how much rhetoric there is out there about a pending economic collapse. What basis do people have for this prediction?
All I was suggesting is that people calm down and consider how good they have it. Yeah...high taxes and stupid gov-mint policy piss me off too. I, however, don't run around saying that we are headed for a collapse all of the time. There are far too many that do this on BP and it is ridiculous. It taints the site experience for those that would like to engage in rational debate.
High taxes suck enough. High taxes and having to listen to people whining about our sorry state of affairs and how bad we have it is much worse. Get real...we are still more fortunate than other countries by several orders of magnitude. You lose credibility with most when you play the "sky is falling" card all of the time. It ain't dat bad!
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
16y
I won't take the time to reply to Bryan H comments.
Jimmy- Jon gave you some good advice on researching previous blogs and posts I've placed on BP. If you have specific questions, place here or PM me. If placed here, you'll have a chance to receive varying replies. Some from accountants, some from experienced investors and some from others.
I've always said plan for the worst and hope for the best. Please don't take this as religion-but I believe in the Bible and the Book of Revelations. Only a matter of when
I do listen to and read Glen Beck. I love people that actually make me think. I also read many other authors' works. I've listed my favorite book on here many times. The Truth About Money, by Ric Edelman. Even though I don't agree with his thoughts on RE, I still learn much from him. Same with Beck. I read in detail Arguing With Idiots. Well written and documented.
Currently reading Crisis Economics by Nouriel Roubini and Stephen Mihm. It is scary to me how little we've learned from pevious crisis' in MANY countries around the world. We seem to be going down that path. As I've said before, I'll plan for the worst and hope for the best.
I would be afraid of those that say all is well, with nothing but gut feeling to back it up. I read a lot and process those items.
For those that say RE is out of the woods, they're just plain stupid. Here are a couple examples.
1.NAR reported on tuesday existing home sales for July. Sales were down 27% from June and down 26% from July of previous year.This is not an anti Economy reporting group!
2. David Lereah, chief economist for NAR told Washington Post in 2005 " Any talk about the housing market crashing is ludicrous."
Normally looking at the past makes it pretty easy to predict the future. Trends and experience do have an effect. Again, time will tell. Rich
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
16y
Re: the Bible and Revelation. Rich. I'm with you on this and with all due respect I noticed a sign-- as of this moment your influence score is 35,666. Coincidence? I think not. :mrgreen:
Of course since you started this thread, my post will add a point to your score.
Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
16y
A big part of the picture is the substantial increase deficit spending. In Feb it was estimated that deficit spending for 2010 would be 1.5 trillion in fact it will be substantially more.
Here is the projections made earlier this year.
http://blog.heritage.org/2010/02/05/past-deficits-vs-obamas-deficits-in-pictures/
It is not just that the government is spending more than they are taking in, it is the magnitude of the spending that has occurred in 2010 and has been obligated in future years. This kind of runaway spending can cripple the US economy. I still believe the US is the best place to live, but I also realize that some serious problems are a head that will require hard choices and better leadership.
Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
16y
Jon- I need a post to get off that #!
Someone mentioned the GDP, I think. Here are the actual #'s which definitely constitutes a trend. GDP growth:
2009 4th qrtr--5%
2010 1st qrtr--3.7%
" 2nd qrtr--1.9%
I guess that is a bad trend...
Charles- It shouldn't surprise you the estimate was way off. The #'s are currently having to be re-adjusted when coming from the Feds.
Unemployment, new claims, costs of health care bill, etc.Pretty standard method currently. Rich
Real Estate Investor · Elkhorn, WI · Member since 2008 · 453 posts · 104 votes
16y
Originally posted by Bryan Hancock:
It is also ridiculous how much rhetoric there is out there about a pending economic collapse. What basis do people have for this prediction?
All I was suggesting is that people calm down and consider how good they have it. Yeah...high taxes and stupid gov-mint policy piss me off too. I, however, don't run around saying that we are headed for a collapse all of the time. There are far too many that do this on BP and it is ridiculous. It taints the site experience for those that would like to engage in rational debate.
High taxes suck enough. High taxes and having to listen to people whining about our sorry state of affairs and how bad we have it is much worse. Get real...we are still more fortunate than other countries by several orders of magnitude. You lose credibility with most when you play the "sky is falling" card all of the time. It ain't dat bad!
Hi Bryan,
Can you please provide your predictions and what those are based on? I certainly would like to get other opinions about our economic future (not the current status).
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
16y
Originally posted by rich23s:
Hi Bryan,
Can you please provide your predictions and what those are based on? I certainly would like to get other opinions about our economic future (not the current status).
Thanks,
Rich
As Jon Klaus stated...John Mauldin has some great newsletters. We both read them and they are excellent. I read Mauldin's stuff and a lot of articles from my LinkedIn network, most of which are posted on BP's bulletins section if you want to check them out.
I am not foolish enough to pretend to know what will happen with any large degree of certainty. Macroeconomic events can turn dramatically with world events. Absent any other anomalies I think we will see continued hard-to-get credit and its consequences. Unemployment will be stubbornly high, but it will fall at some point next year.
I think that the turn of the year will recalibrate where we are in people's minds and as they get back to work they will spend more and we will gradually dig our way out of things. There will likely be some token legislation to try to do a "Main Street Bailout" at some point to prime the pump economically.
This thread is about taxes so I don't want to hijack it anymore than I already have. I was just hoping to inject some rationality into things.
My prediction is for heightened inflation when the banks finally turn loose of some money. That will be the primary form of taxation going forward and it is why being a net debtor is a good financial decision. Those that are fortunate enough to take advantage of historically-low, fixed-rate debt will flourish going forward as they model their balance sheets after the government's balance sheet. I think those that lend long, fixed-rate debt that is subject to interest rate risk are going to suffer dearly in this environment.
I don't think we will see Armageddon, crazy currency swings, or a "meltdown" of any sort. We will just have continued muddle through and a gradual easing of muddlethroughness. This opinion is based on what I read from experts that are far smarter than I am. I don't see many rational economists or respected leaders running around saying that the sky is falling or will fall.
Real Estate Investor · Phoenix, AZ · Member since 2009 · 1k+ posts · 1k+ votes
16y
I read a few of John Mauldin's newsletters based on someone's recommendation. He really does not know much about the economy or economics and is better at promoting himself and his partners than in actually understanding economics. There are many such public speakers with no knowledge or training who have a large audience because the audience does not know any better, either.