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Since this is now being proposed, and a number of posters on the board seem to have a background in acct/finance, it would be interesting to hear some input.  On the surface, this sounds shaky at best, but I'm not a financial expert.   How would this work?  What would the length of time be for the proposed increase in 'gain'?  If your 'gain' becomes a loss, would you get a tax rebate or write off?  Would this cause wild swings in tax revenue, because of under or over-valuation?  What will be the standard for valuation?  If passed for billionares, will this eventually be levied against the thousand-aires like most of us probably are?

(10-27-2021, 02:06 PM)NewJagsCity Wrote: [ -> ]Since this is now being proposed, and a number of posters on the board seem to have a background in acct/finance, it would be interesting to hear some input.  On the surface, this sounds shaky at best, but I'm not a financial expert.   How would this work?  What would the length of time be for the proposed increase in 'gain'?  If your 'gain' becomes a loss, would you get a tax rebate or write off?  Would this cause wild swings in tax revenue, because of under or over-valuation?  What will be the standard for valuation?  If passed for billionares, will this eventually be levied against the thousand-aires like most of us probably are?

It’s nothing but posturing by the left. Wealthy politicians won’t let it happen.

I’m all for promoting it though. It’s a clear demonstration of what the democrats want to do to America: tax unrealized wealth and monitor your bank account.

Thousandaires don't have the liquidity to pay taxes on unrealized capital gains. Assets would require annual appraisals as well.. This is a moot point and red meat for a brainless base.

(10-27-2021, 02:17 PM)StroudCrowd1 Wrote: [ -> ]Thousandaires don't have the liquidity to pay taxes on unrealized capital gains. Assets would require annual appraisals as well.. This is a moot point and red meat for a brainless base.

You do have that liquidity if they take the money daily from the mandatory IRS cash app on your smart device.

It's a wealth tax. I'm not for it at all.
I would be for taxing realized capital gains as ordinary income.
But not this.

(10-27-2021, 02:06 PM)NewJagsCity Wrote: [ -> ]Since this is now being proposed, and a number of posters on the board seem to have a background in acct/finance, it would be interesting to hear some input.  On the surface, this sounds shaky at best, but I'm not a financial expert.   How would this work?  What would the length of time be for the proposed increase in 'gain'?  If your 'gain' becomes a loss, would you get a tax rebate or write off?  Would this cause wild swings in tax revenue, because of under or over-valuation?  What will be the standard for valuation?  If passed for billionares, will this eventually be levied against the thousand-aires like most of us probably are?

It's one of the worst ideas in the history of the world.

(10-27-2021, 02:41 PM)flsprtsgod Wrote: [ -> ]

(10-27-2021, 02:17 PM)StroudCrowd1 Wrote: [ -> ]Thousandaires don't have the liquidity to pay taxes on unrealized capital gains. Assets would require annual appraisals as well.. This is a moot point and red meat for a brainless base.

You do have that liquidity if they take the money daily from the mandatory IRS cash app on your smart device.

How would that work for home values? When the fed prints trillions, home values are artificially raised like they are now.

Imagine the ideology of this man having such influence in our government. 

It's been removed, but if you are a Democrat, you are still a moron.

This would be a disaster, and I think it's just all talk to build up the big bad billionaire. I don't think there's a chance in hell this passes.

It's also not a wealth tax, it's illegal seizure of property.

Let me see if I understand this. Let's say this year is a good year. My stocks go from 10k to 12k. I get taxed on the 2k, even though I never pull it out of the stock market. Then, next year, it's bad, and my stocks drop back down to 10k, and I need to take my money out. I just paid taxes on 2k for nothing?

(10-27-2021, 03:37 PM)Lucky2Last Wrote: [ -> ]Let me see if I understand this. Let's say this year is a good year. My stocks go from 10k to 12k. I get taxed on the 2k, even though I never pull it out of the stock market. Then, next year, it's bad, and my stocks drop back down to 10k, and I need to take my money out. I just paid taxes on 2k for nothing?

Correct. The math for homeowners is even more frightening.

Unrealized gains tax is one of the dumbest things in the world !

(10-27-2021, 03:42 PM)StroudCrowd1 Wrote: [ -> ]

(10-27-2021, 03:37 PM)Lucky2Last Wrote: [ -> ]Let me see if I understand this. Let's say this year is a good year. My stocks go from 10k to 12k. I get taxed on the 2k, even though I never pull it out of the stock market. Then, next year, it's bad, and my stocks drop back down to 10k, and I need to take my money out. I just paid taxes on 2k for nothing?

Correct. The math for homeowners is even more frightening.

The only way, at least for stocks, that it could potentially make any sense (and it would still almost make no sense), is if you get tax deduction on the unrealized losses.  

They're also only pushing this on billionaires and I thought I saw recently people who have made at least $100M the last 3 years.  So, for the majority of us it won't matter.  However, I imagine it would have a devastating impact to the markets.

(10-27-2021, 04:01 PM)KingIngram052787 Wrote: [ -> ]

(10-27-2021, 03:42 PM)StroudCrowd1 Wrote: [ -> ]Correct. The math for homeowners is even more frightening.

The only way, at least for stocks, that it could potentially make any sense (and it would still almost make no sense), is if you get tax deduction on the unrealized losses.  

They're also only pushing this on billionaires and I thought I saw recently people who have made at least $100M the last 3 years.  So, for the majority of us it won't matter.  However, I imagine it would have a devastating impact to the markets.

Lol, just wait until they start talking about all those unrealized gains in those IRAs just sitting there waiting to be milked.

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(10-27-2021, 02:53 PM)StroudCrowd1 Wrote: [ -> ]

(10-27-2021, 02:41 PM)flsprtsgod Wrote: [ -> ]You do have that liquidity if they take the money daily from the mandatory IRS cash app on your smart device.

How would that work for home values? When the fed prints trillions, home values are artificially raised like they are now.

That's a Feature, not a Bug.

It works with a liquid secondary market. So it's easy to apply to the top 700 wealthiest people for their stock holdings. Not so easy with harder to value assets. As always, the devil is in the detail.

(10-27-2021, 04:08 PM)flsprtsgod Wrote: [ -> ]

(10-27-2021, 04:01 PM)KingIngram052787 Wrote: [ -> ]The only way, at least for stocks, that it could potentially make any sense (and it would still almost make no sense), is if you get tax deduction on the unrealized losses.  

They're also only pushing this on billionaires and I thought I saw recently people who have made at least $100M the last 3 years.  So, for the majority of us it won't matter.  However, I imagine it would have a devastating impact to the markets.

Lol, just wait until they start talking about all those unrealized gains in those IRAs just sitting there waiting to be milked.

I think the idea to cap the value of an IRA has more merit.  Once your IRA is over a few million dollars you should have to roll some of it into an account that isn't sheltered.  There are people with over a billion dollars in their IRAs and that's just ridiculous and corrupt.   Not saying the government should confiscate all that, but I am saying above a certain value it should become taxable.

(10-27-2021, 04:56 PM)mikesez Wrote: [ -> ]

(10-27-2021, 04:08 PM)flsprtsgod Wrote: [ -> ]Lol, just wait until they start talking about all those unrealized gains in those IRAs just sitting there waiting to be milked.

I think the idea to cap the value of an IRA has more merit.  Once your IRA is over a few million dollars you should have to roll some of it into an account that isn't sheltered.  There are people with over a billion dollars in their IRAs and that's just ridiculous and corrupt.   Not saying the government should confiscate all that, but I am saying above a certain value it should become taxable.

You just explained the required minimum distribution except in your scenario,  you want the government to steal our money sooner.

(10-27-2021, 05:48 PM)StroudCrowd1 Wrote: [ -> ]

(10-27-2021, 04:56 PM)mikesez Wrote: [ -> ]I think the idea to cap the value of an IRA has more merit.  Once your IRA is over a few million dollars you should have to roll some of it into an account that isn't sheltered.  There are people with over a billion dollars in their IRAs and that's just ridiculous and corrupt.   Not saying the government should confiscate all that, but I am saying above a certain value it should become taxable.

You just explained the required minimum distribution except in your scenario,  you want the government to steal our money sooner.

Only a fool would call taxation theft.

(10-27-2021, 06:42 PM)mikesez Wrote: [ -> ]

(10-27-2021, 05:48 PM)StroudCrowd1 Wrote: [ -> ]You just explained the required minimum distribution except in your scenario,  you want the government to steal our money sooner.

Only a fool would call taxation theft.

Taxation is theft. How else would you describe it?

Back to your topic, the purpose of the RMD is to force taxation even when the distribution may not be required. That is theft.