(03-30-2025, 08:02 PM)Sneakers Wrote:

(03-30-2025, 03:22 PM)mikesez Wrote: The people writing the law would be free to use either the loan amount or the bank-demanded multiple of the loan amount in their tax calculation. I suggest the loan amount, which results in a lower tax. 

As far as HELOCs, if it's a primary residence, its gains already aren't taxable, regardless of if the gains were realized as a sale or as a loan.

If it was a business vehicle, you could already claim its depreciation as a loss.  For a personal vehicle you can not.

Got any more misinformation?

(03-30-2025, 07:34 PM)mikesez Wrote: For instance?

Your "information" misses a few key points.   Gains on a primary residence are not automatically tax free.  You must have lived in the house as your primary residence for two of the last five years and the exemption is limited to 250k for individuals and 500k for married couples.
You also haven't explained your plan.  Are you suggesting eliminating the gains exemption on primary residences?

Thanks, I'm familiar with depreciation on business-owned assets.  You said, "start collecting capital gains on any asset used as collateral on a loan" and a personal car or boat can meet that definition.  Are you backpedaling already?

You're the one who keeps bringing up finer points.
All I said was, if an asset is used as collateral on a loan, treat the origination of the loan as a realization of the capital gain.  If the asset was not subject to capital gains tax before, for some other reason, it still would not be subject to capital gains tax.  Once the asset's gains are taxed this way, its cost basis would go up to today's value, so you don't get taxed on the same gain twice when you actually sell the asset, if you ever do sell it before you die.

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