The million dollar question. Like I need this from the top, talk slow for me and keep the answers very very simple, Ha. If I buy a thousand dollars worth of office equipment can I write that off or am I going to be on a flat rate? Is turbotax going to hold up? Tax reform seems so big we should vote on that right?

This time around? Are we talking the current body of representatives or the past 100 year track record of botching the job. Smaller government is better government. Until they can learn to manage money better, I vote for giving them less of it.

You think it’s a talking point, I think this time around it’s being a bit naive.

Ross – Its a political talking point – No one in their right mind intends to eliminate home mortgage. You start by putting everything on the table and letting Congress hash it out. When a Bill leaves the House lets see what it has…then see what the Senate is proposing.

When did the measure of right and wrong become how many people it affects? Slavery ‘only‘ oppressed less than 8% of the population and less than 5% of people ‘owned‘ slaves. Who would argue THAT was ok based on it only affecting a relatively ‘few’ people? How about murder? Only affects a relatively few people. Make that  OK on that basis?

Ross, those affected by it are not all rich folks. My job at IRS when I worked there was to review real property values subject to estate and gift taxes.

The taxes are on the interests conveyed – not those received. An eleven million dollar estate may seem like a lot but by the time it is apportioned to the recipients its far less.

Nominally $4,180,000 is taxes due (assuming this were a net FMV figure). Thats a LOT of money.

So the estate beneficiaries get $6.82. Sounds like a lot right? Say its a farm. The recipients either have to mortgage it now to pay the taxes, or sell it. How is that fair or equitable?

Say its six apartment buildings for 6 kids and 12 grandkids. Sell half to pay the taxes? How about NEXT years short term capital gains on the sale of the property for the purpose of generating the cash to pay the estate tax?

The ONLY things estate (death taxes) due is to steal money from the life’s work of people AND to provide for full employment of $500 an hour tax attorneys, and CPAs (that are as often as not retired IRS agents).

I haven’t even touched on estate costs where opportunists attempt to steal the estate (often successfully since IRS couldn’t care less who actually pays the tax).

Ross, Im a union organizer. Hardly a Wall Street defender, but in honesty if we don’t rewrite the entire tax codes (they are multiples by the way) we will continue to promote corruption among politicians; and make criminals of those simply trying to protect what they earned (and already paid taxes on several times over).

Wealthy and poor alike.

The wealthy are not our divine right financial targets. They provide investment and jobs. I cant advocate for labor benefits or professional recognition from people that dont have any money.

Lets all honestly debate a specific budget and agreed necessities. THEN decide whether we can or where to cut taxes. Either way, the hundred thousand plus page tax code(s) needs to be redone. In 1916 it was a page and a half return form. One anyone could fill out in about five minutes. BUT STOP the selective punitive taxes and at same time stop ALL the special interest tax breaks (like sports franchises).

Right now there is no specific bill to cut taxes. Merely an outline. Whether you demand higher or lower taxes, focus on a fair plan – not partisan talking points.

PS – I didn’t even complain that this is an appraisers blog – not a generic or partisan political debate site.

It’s not fake news, this is a proposal

To modify it now is to alter my long term financial planning ten years (or 1 or 5 etc) after the decision was made.

Various proposals have floated discussion about eliminating the interest deduction and partially offsetting it with an increase in the standard deduction. I’m less open minded on this than I was when it was first proposed. For OTHER tax adjustments an increase in standard is fine, but the interest deduction MUST remain.

Otherwise it will create separate classes of interest deduction. The more expensive the house, the lower the deduction as opposed to what it currently is. It wont wreck the market,  but it would seriously damage it.

Remember when the tax write offs for 2 to 4 units were reduced? Almost overnight, all the doctors and other professionals that had been ready buyers ceased buying them to shelter income.

VaCAP is right to tell us to write our representatives, but lets also understand they have already started taking entrenched partisan positions WITH NO SPECIFIC PROPOSAL yet passed (or even a Bill proposed).

I want the interest deduction saved because I think its part of a covenant with the American People. Other than that, Im ‘open’ to ideas.