(04-02-2025, 10:10 AM)Sneakers Wrote:

(04-02-2025, 09:51 AM)mikesez Wrote: It's more than just a belief. It's a belief that a bank to originates a loan on.
Besides, most of the assets we are talking about are things like stocks and real estate.
There are also assets that are harder to evaluate like artwork, and I suppose an owner may be motivated to go to a bank and ask them to lowball the value so that they can get a tax break. But over time that would be reducing their ability to use loans to create income based on that asset, and would also make the bank liable for some fraud investigations. Most people would play it straight. Every tax system can be gamed, but some can be gamed more than others.

Still waiting on your definition of "loss" and what assets would be subject to the plan.

You're talking about felony offenses.  Let's stick to realistic, common business type scenarios.

Assets that are subject to capital gains tax today would be subject to this. Assets that are not, would not. 
Any reduction in value between the time that an asset was purchased and the time that it was used as collateral on a new loan would be considered a loss. 
Any increase in value between the time that an asset was purchased in the time that it was used as collateral on a new loan would be considered a gain.
It's only complicated if you want it to be complicated. What is the problem?

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(04-02-2025, 10:11 AM)Jag149 Wrote: That system is no more equitable than what is in place. It just allows the charging of taxes based on what some bureaucrat believes the value is in advance. Hard pass. Doge is uncovering what those guys have been up to and it is not pretty.  So your a tax and spend guy?  Want to kick all the old people out of their homes? How nice of you.

The value of the asset is established by agreement between the person who owns the asset and the bank that is loaning them money using the asset as collateral. No IRS bureaucrat is involved with determining the value of the assets.

Who said anything about kicking old people out of their homes? That's a question of state law, not federal tax policy. Our state has a homestead exemption, which prevents most old people from being kicked out of most of the homes they own. Some states don't have this, but that's not a federal issue.

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