No need for emphasis here. Everyone here already knows this BG.[/quote]
I’m confused flu…
Here you say everyone already knows this – when she posted an article saying a new computer system will be online this year to get the prop tax data from the counties.
Then in other posts you say they will never do it because they’re broke and won’t get the system together.
I assume the prop tax data will be like other tax data reported by employers, brokerage firms, banks, etc… sent directly from the county to the state (and fed)… Done electronically. Presumably they’ve defined the interfaces so that the reporters (counties) can all transmit the data exactly the same. Maybe that’s a leap – but it sounds like this has been in the works for a while.
Are you saying the computer program to accept this data from the counties won’t happen? Or are you saying everyone already knows it will be done (see above).
You can jump all over Brian for being inconsistent… but he’s consistently inconsistent. It throws me for a loop when you’re inconsistent, flu, because usually you maintain the consistent view.[/quote]
I meant to say that everyone knows reporting mello-ruse (sic) as property tax deduction is not correct. There’s been countless articles, discussions about this.
As far as the other part. I heavily doubt any reliable system is gonna be in place. They were talking about this in 2011. There is not going to be county to state electronic feeds, otherwise they wouldn’t be asking each person to send in their property tax bill. And that electronic feed is absolutely needed.
The analogy would be the 1099 form. You don’t send in 1099 forms because the IRS/FTB can already obtain that information electronically. And any information that needs to be reported but not sent electronically by the financial instituation is subject to accuracy issues…That’s why for the longest time, things such as wash sales and options/derivatives were more or less reported on an “honor system”, because the they don’t appear in a 1099 form, and without a explicit audit, there would be no electronic way (in the past) to verify if you complied with wash sales rules or reported profits from derivative trading correctly or for that matter reporting gains on stocks for which you had multiple multiple transactions throughout years and years of ownership For example, if one traded 1 stock 100 times in a 10-15 year interval, with varying purchase prices and sale prices, it’s nearly impossible for a computer to figure out if the same purchase shares were used more than once simply because the purchases were never reported to the IRS and never tracked. Option/derivative transactions were never reported to the IRS (and to my knowlede still aren’t)…And wash sales are can’t be t if you don’t have the buy history in the system. The system depended too heavily on the filer to accurately report.
The issue with dealing with the property tax bills is going to be exactly the same. Because again, it’s depending on the information that the owner sends in.
Even if the majority of the people won’t be sending in fake forms, just dealing with the different taxonomy within the country of what is ad-valorem and what isn’t going to be trivial…Because there isn’t a common dictionary or code to indicate what is or is not.
My understanding of how this hodgepodge system probably will work is “everything above a certain line” is going to be classified as deductible, everything below a certain box is going to be generally considered not taxable… Hope it’s consistent.[/quote]
I couldn’t see anywhere in the article that says tax filers need to send in a copy of their property tax bills. It does, however, mentioned that tax filers might need to have a copy of the property tax – and I assume – so that when they do their taxes they’ll know what is deductible and what’s not.
As some others pointed out, this is not as complicated for the state to implement and enforce. It’s far less complicated than the wash-sale rule. Stocks and mutual funds are much more complicated – you could buy/sell any amount at anytime, dividends, splits, reverse splits, etc…
