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CoronitaParticipantBump so the $400k/450k limits for the 20% cap gain tax rate IS incremental.
But it’s a pretty f..d up law.
Basically, it punishes wage earners that make that income in the majority in income, while it’s much for forgiving on people who are hitting those limits via capital gains…
For joint filers, if your AGI is $500k for example, it depends on where that income is coming from.
If $450k was from your W2/1099 and $50k was from capital gains, then what ends up happening is the entire $50k in capital gains gets taxed at 20%.
If, however, your W2/1099 income was $200k, and your capital gains was $300k, then $250k of your capital gains get’s taxed at 15% (up to the $450k threshold) and the remaining $50k of your capital gains gets taxed at 20%.
So who loses in this?
1) Doctors/lawyers who get most of their income as wages.
Who wins?
2) I’m guessing people who get their AGI mostly from investments…
Lol….
November 8, 2013 at 3:52 PM in reply to: Anyone have a property manager recommendation in L.A. #767696CoronitaParticipant[quote=Hobie]I think he is just spoofing as Westside advertises on AM radio.[/quote]
Ic.
November 8, 2013 at 2:29 PM in reply to: Anyone have a property manager recommendation in L.A. #767693CoronitaParticipant[quote=paramount]Of course: Westside Rentals[/quote]
Do you DIY and list yourself or use someone?
I recall you mentioned you had a bad experience with a property management company one time.. I’m assuming this isn’t that one 🙂The person I use to work with did direct relocation placements for companies overseas that had visiting employees here on rotation for 3-5 years. The rent checks were cut by the company themselves. Unfortunately, she is retiring I think.
November 8, 2013 at 2:06 PM in reply to: Anyone have a property manager recommendation in L.A. #767691CoronitaParticipant[quote=spdrun]For a condo? Just find a good tenant, rent the place out in good repair, and have a few tradesmen’s phone numbers on speed-dial. i.e. don’t bother with middlemen.[/quote]
We’ve been through this before. If you don’t know of one, fine. I’m at a point when my time is more valuable than my money.
CoronitaParticipant[quote=spdrun]
Lol. Markets are up again today. My head is dizzy….
NASDAQ -42 as of 11 am. Are the big players and lemmings really selling off to pile more money into TWTR? This is insane and bizarre — by all news, etc, this should have been a good day.
FB at 48.
[/quote]Meh, I don’t care. Tesla is down to $142 and falling. It doesn’t matter. Twitter up to $45/share…Up one day, down another. nothing really special.
Like I said, whatever floats your boat.
CoronitaParticipant[quote=spdrun]
The deal of a lifetime was when gas prices initially shot up big time (then sticker shock of paying $4+/gallon)…
Wonder the following: if average gas prices hit $2.50/gal in the US, will we have a lot of good deals on Fiat 500s, Prii, and Jetta TDIs? (I happen to like small efficient cars for reasons other than gas mileage.)
I saw gas for about $2.85 when I was in NJ the other day. (Sadly, I take diesel which was about $3.50)[/quote]
You probably can get a good deal on Jetta TDI’s at least the newer ones…. assuming they are still running…considering the high failure rate of the fuel pump grenading…
CoronitaParticipant[quote=urbanrealtor]
Honestly, I have been surprised at how well I get along in real life with the piggs I have argued with. Even Josh. Which is amazing considering our conversations.[/quote]that’s easy to answer. Most people aren’t as big a dick in real life as they are on internet blogs. Piggington is tame compared to other blogs..
Clearly, you folks haven’t been on miataturbo.net….
Your first post in the noobie section determines whether you get the privilege to post or get banned for life….
CoronitaParticipant[quote=The-Shoveler]Actually I would be OK with Sub-prime-loan cars, except where the heck do they go after being repro’ed
I mean I expected to see them backing up with dealers having to buy extra parking space for them,
You know deals of a lifetime and all that after the 2009 crash.[/quote]
The deal of a lifetime was when gas prices initially shot up big time (then sticker shock of paying $4+/gallon)…
A lot of the V8’s weren’t moving at all.
CoronitaParticipant[quote=svelte]It all depends on who you want to quote, flu. You should know that.
See the glass as half empty if you want.
[/quote]
Look, I’m not suggesting other automakers are not guilty of this too, there were plenty of articles quoting people purchasing toyota doing subprime too.
My point wasn’t to exclusively bash GM/Chrysler. Just to show that subprime is back at least for autos. GM/Chrysler are two of such companies that restarted subprime lending after the likes of Ally was bailed out (more less)…Some of these auto companies afterwards even bought companies that exclusively do subprime lending. Mitsubishi almost went under a few years back because of subprime lending… And here we are again, with companies pushing for 84-96+month subprime loans again… If you want to deny that, and don’t think that’s not a problem..Well, ok…
I mean, it definitely was really ironic that when I was trying to rent on a condo down south, someone with a credit score of 500-550, a few judgments, a few tens of thousands in outstanding credit card debt (one being for a Victoria Secrets charge card to the tune of $15k outstanding)..still managed to pull up in a brand new spanking new Nissan Altima on a $40k salary….Don’t you think there’s a rat in this ?
It’s kinda ironic that on one hand people are complaining about how bad the economy for main street is. And on the other hand, people have means to be driving around brand new financed cars even when their credit is totally shot and their income and debt load would say otherwise….
Seriously, 96+month loans on a new car, and that doesn’t smell fishy?
CoronitaParticipant[quote=spdrun]I suspect that delinquency rates are low because more people are driving older, paid-off cars. Average age of a car on US roads is the highest it’s ever been. Glad that Oh-bummer’s Cash for Clunkers didn’t really work in reducing that number!
http://money.cnn.com/2013/08/06/autos/age-of-cars/%5B/quote%5D
My litmus test is my car detailer. It’s almost impossible to get him recently without 6 weeks advanced notice, starting about 4-5 months ago. I asked him what’s going on? He says, he’s been too busy… a lot of people with new cars. He’s kinda an older guy, and tells me I can’t believe who is financing these cars”….
CoronitaParticipant[quote=no_such_reality]Unfortunately that $450k threshold isn’t a problem yet although we’re still striving forward and hoping to have that problem in the future[/quote]
It only works if you’re retired and pulling money from your IRA’s/401k. I just happen to be in the loop because I know some old farts twice my age at work how were explaining things to me.
My understanding of what they are saying is
1) Let’s say you have your income 100% from long term capital gains of $451k. Your tax would be 20% on that or $90.2k2) If you donated 2k via QCD, that would put your taxable income into 449k, with a 15% tax rate or $67.35k in taxes, plus $2k in charitable donations to your favorite cause.
I haven’t run it by an accountant to see if that’s correct or not, because it’s really not my problem, and my CPA tends to charge for every question I ask these days… Lol…And besides, that rule will be long gone by the time I retire.
But it does make me wonder. If someone is at/near the threshold. Let’s say they earned exatly $450k instead of $449k, their entire capital gains is taxed 5% more than if they earned an $1000 less…. If that’s the case, lol……Ouch…
CoronitaParticipant[quote=no_such_reality]Minor nit. That $250k isn’t on gains it’s on any income. So if you’re a two wage earner family with $250k of w2, every penny of capital gains gets the surcharge.[/quote]
Yes, the threshold $200k/$250k is on total modified AGI.
The 3.8% surcharge, however applies to investment income portion though, not on the “salaried/wage” income portion.
Also, if you’re 70 years old+ and taking mandatory distributions on your IRA, this looks like the last year QCD directly from your IRA in it’s current form withn allowed with it’s tax treatment, unless the government decides to extend that.
*Might* be helpful if you’re in the $400k+/year gain this year and subjecting yourself to a 20% capital gain tax instead of 15%. My understanding is with QCD, you can make a direct donation from your IRA and actually reduce your taxable income, since QCD distribution is not considered income. That might end up bumping you down to the 15% capital gains bracket, and your taxes might be slightly less if you happen to be on the borderline…
https://personal.vanguard.com/us/insights/article/qcd-comeback-012013
CoronitaParticipantThe 3.8% surcharge though isn’t just for real estate, it’s a general surcharge for all net investment income, including but not limited to interest, dividends, long/short term cap gains, annuity, and passive income from rental/royalties. (It excludes distributions from pensions and other retirement accounts not considered investment income…at least for now…)
And It applies to net investment income portion of your modified AGI if your modified AGI in excess of the threshold amount $200,000 for singles or $250,000 for joint. Not housing specific….
In the case of the primary home sales, the net gain exemptions still apply, and don’t count toward the tax surcharge.
…
So…When/if you sell your primary, you get the first $250k of gain ($500k gain for joint filers) tax free. And anything above $250k($500k joint) gain would be subject to that surcharge as any other investment if your AGI is above the threshold…It’s really not that much different than if you unload a stock portfolio that nets you $250k in gains, except that in the case of the primary home, your first $250/500k is tax exempt.
Here, if this applies to you:
http://www.besskanecpa.com/Medicare-Surcharge.htmlThe other thing that will change
(a) Prop 30 increases if that applies to you
(b) capital gains tax rate has been increased from 15% -> 20% if your income is $400k or above for singles, $450k for joint if that applies to you….Besides maybe trying to time your capital gains sales, nothing you can do about it. And that doesn’t always work. Case in point… A lot of people try “hold on to a high-flying stock/volatile” to “save on taxes until years where they AGI isn’t as high”… only to see the same volatile stock go from being a big capital gain to a big capital loss .
My philosophy is a paying $X extra tax dollars on net gain of asset Y is still better than paying $0 tax on an asset that you report as a capital loss (or worse as a capital loss carryover)
It’s the law and new tax rates. Deal with it. Besides, the markets have been on fire so, it wasn’t exactly that hard to have made money in the markets this year.
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