“No indication that Kushner broke the law”
Failing NYT and Bloomberg, very fake news!
Well what do you expect, the corporate media can’t criticize the policies that allow the super wealthy to shield all their hoarded surplus value from the society that actually produced it. It has to be introduced as some moral failing on the part of the individual so we can all hate just him and then go about our day.
Breaking news:
Evil fascist Jared Kushner follows IRS code.
Using a little-known loophole for 1%er’s, traitor Kushner manipulates return to avoid paying taxes on exorbitant income. More at 11.
The only thing fake about this news, is the outrage on this forum. In the articles I read, no one said the practice JK engaged in is illegal. It is certainly newsworthy the extent to which depreciation can be used to shelter income from taxes. The cost of running the country is what it is, so when property tycoons are allowed to exploit loopholes to avoid taxes, it is effectively a tax on the rest of us. Keep up the snark though, cuz the joke is on you.
Not sure how much you understand about taxes but look up depreciation recapture. Also, real estate development puts alot of people and industries to work. Be careful, your jealousy is showing. So every time someone takes a deduction is it “effectively a tax on the rest of us”? Or is the guy just doing his taxes? Maybe its because the numbers are so big they are hurting your ego.
Why undertake the CFA as a communist?
Maybe doing the CFA turns you into one.
I thought depreciation recapture only happens on the sale of the property, while depreciation benefits you annually you while you own it. I forget the term, but it’s something like 1032 exchange and you can avoid the DC on the sale as well. It’s funny how often people on this board are accused of being communists. I think I just accused you of being a communist for criticizing Clintons for getting rich in private life. Maybe the CFA really does turn you into a commie. As for Jared, of course I am jealous, why would I deny that? Who wants to be a working stiff, if you can inherit millions, buy your way into Harvard, and marry a woman who looks like Ivanka. Amazing thing is that he’s such a weasly, money grubbing, effeminate dandy, I might just stick with my 9 to 5.
You conveniently leave out the main point…the Clintons are redistributionist progressives, but hoard wealth privately, by taking advantage of other areas of the tax code. That makes them hypocrites, I don’t see how pointing that out makes me anything. Unlike you I don’t envy others wealth or advocate taking it away in any amount over and above what the tax law calls for.
Kushner is following the law, if you don’t like it vote to change it, and until then stop taking deductions for your mortgage interest, property taxes, etc. When you take those deductions, its effectively a tax on the rest of us, at least according to your above post…
Again, criticizing him for inheriting wealth etc. i don’t know how he got his money but there is an estate tax, and an exemption, a gift tax, and an exemption to that as well, if you don’t like it vote to change it, but being jealous of the dude is a bad look!
Since Malee thinks im a Commie, maybe we can stop allowing that bottom 50% to vote, since they have no skin in the game!
THe idea that you can depreciate real estate assets is a joke. The tax law really needs to be changed! The 1031 exchange is also a joke. Lol imagine if they allowed that shit for cap gains. Imo we should get rid of all the tax shelters and simplify the code. That goes for businesses as well!
Why exactly is depreciating RE a joke? Physical assets have useful lives and need replacement. Instead of being able to take an expense on a replacement in the year it is placed in service, you have to depreciate possibly over decades depending on the item (go read about TPR). That’s the real joke. Didn’t Grant Cardone teach about that?
Tax laws do change and the code essentially incentivizes certain types of investment. Prior to 1986, all losses from RE were able to be taken as active. As you should know, passive losses are now limited and for most investors can only be taken against passive income. Developers take risk, and are given incentives to create the stock of housing etc. that is needed. Take away the incentives, watch supply drop and rents spike.
Did you guys punt the econ sections of the curriculum?
We can do it for cap gains now with the new tax bill IIRC
Wait what?!? The main point of the article is that Kushner paid no tax, zero, less than $1. That would put him into the bottom 50% of tax payers and ineligible to vote when you become King. Again, take a deep breath, no one is saying what the The Kush did is illegal – not me or the NYT. No one is advocating more taxes. There are a few different points here, going back to the original topic. First, if someone can make hundreds of million and pay no tax, then that is newsworthy. Not sure if you know this, but inequality and frustration against a rigged system is topical. Why does real estate get such generous depreciation is a joke, and make this a business predicated on gov handouts…but that’s an argument for another thread. As for envy or jealously being a bad look, sure ok, it’s a character flaw and I will work on it. But take a look in the mirror, you relentlessly criticize the Clintons for getting rich legally, just because you don’t like them…that’s envy bro, you just have some cognitive dissonance about it cause you believe you’re in the right.
Show me where JK preaches about income inequality and I will let the Clintons off the hook.
Til then, libs are hypocrites and JK uses the law to his advantage.
its a joke because it is used as a tax shelter by very wealthy people who dont need more money. on paper for taxes shit can look really unprofitable because of depreciation that can then be used to offset personal income, but it’s really a cash flowing entity that appreciates in value.
there are also ways to avoid taxation as well on the appreciation, one can easily refinance it to realize the gains without paying a tax, and further giving you more tax shelters from the expense. rental expense should be more tax deductible than this shit. lastly, if we were to remove the depreciation tax shelter, i am very sure, asset prices will fall to offset the lost benefits.
on the econ side, for developer incentives, its a bit situational. If homelessness is an issue and prices are high (like right now), then incentivize. otherwise there is no need to give tax incentives. it is important to note that we have a budget deficit of 1 trillion and a debt of about 20 trillion. i am not convinced that depreciation is a necessary tool to keep around.
His total comp, including salary and investments, in '15 was only 1.7 mil? Thought this dude was billionaire. Anyway, I’m sure he did everything by the book, the real scandal is the law itself. Depreciation on property? RE goes up in value we’re not talking about some equipment?
I don’t know the law at all but I wonder if depreciation taken on RE lowers the cost basis such that you’re just deferring the taxes until the property is sold?
You guys are in over your heads on the RE discussion. I am fond of Nerdy but as always he generalizes and doesn’t think through the nth order effects.
Your cost basis automatically adjusts for depreciation over the 30 years, whether you choose to take the yearly depreciation loss or not. So, the depreciation expense in the mean time is a deferral, not a deduction.
^haha very good point! 401k and ira is also a deferral! ohai you smarty pants
analyst dude - i am fond of you as well. i disagree with the utmost respect!