If what you say is accurate,, does that mean when you sell it, capital gains are only paid on the profit made between the sales price and the value of the home at the time of inheritance? Does this mean an appraisal of all assets is required upon the death of a parent?

No.  Currently, if you sold the hypothetical home, you would pay capital gains tax on the sale price minus the value of the house when you inherited it.  Under the new tax proposal, capital gains tax would be assessed when you inherit the house, and calculated based on the value at the time of inheritance minus the price paid for it many years ago when the parent bought it.  

Currently, appraisal of all assets at the time of the inheritance is strongly recommended, so if you sell something, you calculate your capital gain based on the stepped up basis, that is, the value when you inherited it.  

Example: your parent bought the house 30 years ago for $100,000.  When you inherit it, you get an appraisal, and the value is appraised at $500,000.  A year later, you sell the house for  $510,000.  Under current law, you would pay capital gains tax when you sell the house, and the capital gain that would be taxed would be $10,000.  Under the proposed law, you would pay capital gains tax when you inherit the house, and the capital gain to be taxed would be $400,000.

While insane, there is something poetic about a young Biden voter getting completely hosed by his own doing when their parents pass away..

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No.  Currently, if you sold the hypothetical home, you would pay capital gains tax on the sale price minus the value of the house when you inherited it.  Under the new tax proposal, capital gains tax would be assessed when you inherit the house, and calculated based on the value at the time of inheritance minus the price paid for it many years ago when the parent bought it.  

Currently, appraisal of all assets at the time of the inheritance is strongly recommended, so if you sell something, you calculate your capital gain based on the stepped up basis, that is, the value when you inherited it.  

Example: your parent bought the house 30 years ago for $100,000.  When you inherit it, you get an appraisal, and the value is appraised at $500,000.  A year later, you sell the house for  $510,000.  Under current law, you would pay capital gains tax when you sell the house, and the capital gain that would be taxed would be $10,000.  Under the proposed law, you would pay capital gains tax when you inherit the house, and the capital gain to be taxed would be $400,000.

While insane, there is something poetic about a young Biden voter getting completely hosed by his own doing when their parents pass away..

Sure, but let's not rejoice too much about that, because we'd all be getting hosed.

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While insane, there is something poetic about a young Biden voter getting completely hosed by his own doing when their parents pass away..

Sure, but let's not rejoice too much about that, because we'd all be getting hosed.

Outcome.of this will be interesting. It's a shame we all depend on a guy like Joe Manchin to stop insanity like this.

GOP needs to work on their messaging for 2022 on this one.

In the meantime, all we have to do is not die.

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Sure, but let's not rejoice too much about that, because we'd all be getting hosed.

Outcome.of this will be interesting. It's a shame we all depend on a guy like Joe Manchin to stop insanity like this.

GOP needs to work on their messaging for 2022 on this one.

In the meantime, all we have to do is not die.

If the GOP would grow a spine and get rid of Trump, then we can move forward in this country, with a healthy conservative alternative to the Democrats.  As it is, your man not only lost the White House, he also lost the Congress.  So this is what you get.  I'd still vote for Biden 10 times out of 10, over Trump, though.

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Outcome.of this will be interesting. It's a shame we all depend on a guy like Joe Manchin to stop insanity like this.

GOP needs to work on their messaging for 2022 on this one.

In the meantime, all we have to do is not die.

If the GOP would grow a spine and get rid of Trump, then we can move forward in this country, with a healthy conservative alternative to the Democrats.  As it is, your man not only lost the White House, he also lost the Congress.  So this is what you get.  I'd still vote for Biden 10 times out of 10, over Trump, though.

That is not accurate. It was because of Trump we closed the gap in the house. They were projected to dominate the 2020 election and it was the opposite. You assessment of that os highly innacurate.

GOP need a fighter to handle what is happening right now.

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If what you say is accurate,, does that mean when you sell it, capital gains are only paid on the profit made between the sales price and the value of the home at the time of inheritance? Does this mean an appraisal of all assets is required upon the death of a parent?

No.  Currently, if you sold the hypothetical home, you would pay capital gains tax on the sale price minus the value of the house when you inherited it.  Under the new tax proposal, capital gains tax would be assessed when you inherit the house, and calculated based on the value at the time of inheritance minus the price paid for it many years ago when the parent bought it.  

Currently, appraisal of all assets at the time of the inheritance is strongly recommended, so if you sell something, you calculate your capital gain based on the stepped up basis, that is, the value when you inherited it.  

Example: your parent bought the house 30 years ago for $100,000.  When you inherit it, you get an appraisal, and the value is appraised at $500,000.  A year later, you sell the house for  $510,000.  Under current law, you would pay capital gains tax when you sell the house, and the capital gain that would be taxed would be $10,000.  You would owe $2,000 capital gains tax if you sold the house.  You would owe nothing if you don't sell the house.  

Under the proposed law, you would pay capital gains tax when you inherit the house, and the capital gain to be taxed would be $400,000.  You would owe $80,000 in capital gains tax when you inherit the house, even if you don't sell it.

This would be a breathtaking redistribution of wealth on a scale never seen in this country, and no one would be exempt from it.

I assume they will build in some exemption level, to give the proposal a chance to pass the Congress, but so far, I haven't seen it.

Yeah, sounds super awesome for us farmers.

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Exactly.  I suspect that you probably "earn" +$400,000.00 per year with your operation.  Nobody is looking at the cost to run the operation.  I know farmers that "earn" a lot of money but when it comes down to the cost of operating they actually have a very modest income when all is said and done.  I also know people that own small businesses that are in the same situation.

Some people equate income to equal "wealth".

Newsflash --- Earnings is Sales minus Expense minus Tax.

Newsflash --- Earnings can be expressed by gross.  Many farmers (and other industries) have a gross "income" (earnings) well above the $400,000.00 limit.  Their gross "earnings" - expenses - taxes often equals less than $400,000.00.  I have a son-in-law that owns a few trucks (over the road semis).  He grosses quite a bit above the limit every year, yet makes a pretty modest living after his expenses and the confiscation from the government (taxes).

Taxes are based on "earnings" (gross).

I'm sure that an "investor" such as you understands that.

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There are 10 kinds of people in this world.  Those who understand binary and those who don't.

Newsflash --- Earnings is Sales minus Expense minus Tax.

Newsflash --- Earnings can be expressed by gross.  Many farmers (and other industries) have a gross "income" (earnings) well above the $400,000.00 limit.  Their gross "earnings" - expenses - taxes often equals less than $400,000.00.  I have a son-in-law that owns a few trucks (over the road semis).  He grosses quite a bit above the limit every year, yet makes a pretty modest living after his expenses and the confiscation from the government (taxes).

Taxes are based on "earnings" (gross).

I'm sure that an "investor" such as you understands that.

I don't understand what you are saying there.  I have an accounting background, and an accounting degree, I spent time at a CPA firm doing taxes among other things, and a spent the majority of my time as a corporate CFO.  I've never seen income taxes assessed on anything but net income.  I've never seen earnings expressed as gross income.  Only net income.  

Maybe it's a semantical thing, but I don't understand your use of the term "gross income" or its relationship to the tax liability.

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Newsflash --- Earnings can be expressed by gross.  Many farmers (and other industries) have a gross "income" (earnings) well above the $400,000.00 limit.  Their gross "earnings" - expenses - taxes often equals less than $400,000.00.  I have a son-in-law that owns a few trucks (over the road semis).  He grosses quite a bit above the limit every year, yet makes a pretty modest living after his expenses and the confiscation from the government (taxes).

Taxes are based on "earnings" (gross).

I'm sure that an "investor" such as you understands that.

I don't understand what you are saying there.  I have an accounting background, and an accounting degree, I spent time at a CPA firm doing taxes among other things, and a spent the majority of my time as a corporate CFO.  I've never seen income taxes assessed on anything but net income.  I've never seen earnings expressed as gross income.  Only net income.  

Maybe it's a semantical thing, but I don't understand your use of the term "gross income" or its relationship to the tax liability.

Perhaps we are getting confused here.

On my pay-stub that I get from my employer, there is a section for "earnings".  It adds up my hourly wage, overtime wage, etc.  The bottom total of that is my "gross pay".  When taxes and other deductions are made that becomes my "net pay" which is the amount of my paycheck.  My taxes are assessed on my "gross pay" not my "net pay".

My taxes are calculated off of my "gross pay" and after the government confiscates a portion of my "earnings" I'm left with my "net pay".

Many small businesses (the heart of our economy) operate basically the same way.  Their "income", "earnings" or however you want to express it is the same.  It's the amount of money that they took in or their "gross".  Subtract operating expenses which includes taxes and that is their "net gain".

If I own a small business that say delivers packages.  The money that I make delivering those packages is my "gross earnings".  After deducting the cost of running my business (maintenance on vehicles, insurance, TAXES) the result is the net income that I made.

I don't need to be a CPA to understand that.

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There are 10 kinds of people in this world.  Those who understand binary and those who don't.

I don't understand what you are saying there.  I have an accounting background, and an accounting degree, I spent time at a CPA firm doing taxes among other things, and a spent the majority of my time as a corporate CFO.  I've never seen income taxes assessed on anything but net income.  I've never seen earnings expressed as gross income.  Only net income.  

Maybe it's a semantical thing, but I don't understand your use of the term "gross income" or its relationship to the tax liability.

Perhaps we are getting confused here.

On my pay-stub that I get from my employer, there is a section for "earnings".  It adds up my hourly wage, overtime wage, etc.  The bottom total of that is my "gross pay".  When taxes and other deductions are made that becomes my "net pay" which is the amount of my paycheck.  My taxes are assessed on my "gross pay" not my "net pay".

My taxes are calculated off of my "gross pay" and after the government confiscates a portion of my "earnings" I'm left with my "net pay".

Many small businesses (the heart of our economy) operate basically the same way.  Their "income", "earnings" or however you want to express it is the same.  It's the amount of money that they took in or their "gross".  Subtract operating expenses which includes taxes and that is their "net gain".

If I own a small business that say delivers packages.  The money that I make delivering those packages is my "gross earnings".  After deducting the cost of running my business (maintenance on vehicles, insurance, TAXES) the result is the net income that I made.

I don't need to be a CPA to understand that.

Actually, you are wrong.   

No one is taxed on their gross pay, even though your paycheck shows gross pay and taxes withheld.  Taxes withheld are based on the exemptions you set on your W-4.  Your exemptions are a personal estimate of how much you will owe in taxes after you compute your taxable income on your tax return, which is basically your personal net income.   Gross pay minus deductions equals taxable income.  Your taxes are NOT based on your gross income.  

As for your business, you have gross income, which is all the money you took in, but your taxes are not based on that.  Your taxes are based on your net taxable income, which is your gross income minus expenses before taxes.  

So you are really wrong that taxes are assessed on gross income.  That is never true, whether we're talking about personal income tax or corporate income tax.  

In your penultimate sentence you say:

"If I own a small business that say delivers packages.  The money that I make delivering those packages is my "gross earnings".  After deducting the cost of running my business (maintenance on vehicles, insurance, TAXES) the result is the net income that I made." 

But the taxes are not calculated until AFTER deducting maintenance on vehicles, insurance, etc.  So the taxes you pay are not based on your gross income.  They are based on your NET income.

In a post above, you gave an example of a farmer who grosses $400,000, and you said he is taxed on that $400,000.  That is incorrect.  He is taxed on the $400,000 minus his expenses.  It's only AFTER deducting his expenses that his tax is calculated.

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Perhaps we are getting confused here.

On my pay-stub that I get from my employer, there is a section for "earnings".  It adds up my hourly wage, overtime wage, etc.  The bottom total of that is my "gross pay".  When taxes and other deductions are made that becomes my "net pay" which is the amount of my paycheck.  My taxes are assessed on my "gross pay" not my "net pay".

My taxes are calculated off of my "gross pay" and after the government confiscates a portion of my "earnings" I'm left with my "net pay".

Many small businesses (the heart of our economy) operate basically the same way.  Their "income", "earnings" or however you want to express it is the same.  It's the amount of money that they took in or their "gross".  Subtract operating expenses which includes taxes and that is their "net gain".

If I own a small business that say delivers packages.  The money that I make delivering those packages is my "gross earnings".  After deducting the cost of running my business (maintenance on vehicles, insurance, TAXES) the result is the net income that I made.

I don't need to be a CPA to understand that.

Actually, you are wrong.   

No one is taxed on their gross pay, even though your paycheck shows gross pay and taxes withheld.  Taxes withheld are based on the exemptions you set on your W-4.  Your exemptions are a personal estimate of how much you will owe in taxes after you compute your taxable income on your tax return, which is basically your personal net income.   Gross pay minus deductions equals taxable income.  Your taxes are NOT based on your gross income.  

As for your business, you have gross income, which is all the money you took in, but your taxes are not based on that.  Your taxes are based on your net taxable income, which is your gross income minus expenses before taxes.  

So you are really wrong that taxes are assessed on gross income.  That is never true, whether we're talking about personal income tax or corporate income tax.  

In your penultimate sentence you say:

"If I own a small business that say delivers packages.  The money that I make delivering those packages is my "gross earnings".  After deducting the cost of running my business (maintenance on vehicles, insurance, TAXES) the result is the net income that I made." 

But the taxes are not calculated until AFTER deducting maintenance on vehicles, insurance, etc.  So the taxes you pay are not based on your gross income.  They are based on your NET income.

In a post above, you gave an example of a farmer who grosses $400,000, and you said he is taxed on that $400,000.  That is incorrect.  He is taxed on the $400,000 minus his expenses.  It's only AFTER deducting his expenses that his tax is calculated.

I stand corrected.  Taxes are assessed after income and expenses.  The terms "gross" and "net" can be misleading.

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There are 10 kinds of people in this world.  Those who understand binary and those who don't.

Anyone own Doge? Will there be a massive dip after Elon appears in SNL tomorrow?

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Anyone own Doge? Will there be a massive dip after Elon appears in SNL tomorrow?

I read an article yesterday about Doge.. It stated that if you bought $1000 worth of Doge stock on Jan 1st of 2021, as of yesterday it would be worth roughly $160,000..

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BUY THE DIP ---- BUY THE DIP

May be another 2 days of hits coming but I'm jumping back in now - perhaps we are at the bottom. I did hold on to a few things a little too long but I'll ride it out (Long on CCL, NCLH, UAL, LUV, SQ)

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BUY THE DIP ---- BUY THE DIP

May be another 2 days of hits coming but I'm jumping back in now - perhaps we are at the bottom.  I did hold on to a few things a little too long but I'll ride it out (Long on CCL, NCLH, UAL, LUV, SQ)

So, buy the dip today with 2 more days of dip coming. Sounds like a plan!

The Biden effect has finally taken its toll.

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BUY THE DIP ---- BUY THE DIP

May be another 2 days of hits coming but I'm jumping back in now - perhaps we are at the bottom.  I did hold on to a few things a little too long but I'll ride it out (Long on CCL, NCLH, UAL, LUV, SQ)

So, buy the dip today with 2 more days of dip coming. Sounds like a plan!

The Biden effect has finally taken its toll.

Nobody can predict the bottom so you gotta jump back in sometime.  By nature, I usually get back in just prior to the bottom as opposed to waking up and watching the premarket jump 10% then getting in.  That said, I'm down to 8% YTD profit so I did take a major hit over the past few weeks -- should have dumped more that I did.

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So, buy the dip today with 2 more days of dip coming. Sounds like a plan!

The Biden effect has finally taken its toll.

Nobody can predict the bottom so you gotta jump back in sometime.  By nature, I usually get back in just prior to the bottom as opposed to waking up and watching the premarket jump 10% then getting in.  That said, I'm down to 8% YTD profit so I did take a major hit over the past few weeks -- should have dumped more that I did.

YTD, the S&P 500 is up 10%.   So it seems like you'd have been better off buying an index fund.   It's a lot less work.  

Maybe you're not lazy like me.   I just don't think anyone can time the market consistently.   It trends upward over a long period of time, which makes it a good investment long term, but in the short term, it gyrates up and down for all kinds of unpredictable reasons.

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Nobody can predict the bottom so you gotta jump back in sometime.  By nature, I usually get back in just prior to the bottom as opposed to waking up and watching the premarket jump 10% then getting in.  That said, I'm down to 8% YTD profit so I did take a major hit over the past few weeks -- should have dumped more that I did.

YTD, the S&P 500 is up 10%.   So it seems like you'd have been better off buying an index fund.   It's a lot less work.  

Maybe you're not lazy like me.   I just don't think anyone can time the market consistently.   It trends upward over a long period of time, which makes it a good investment long term, but in the short term, it gyrates up and down for all kinds of unpredictable reasons.

Lol ... trust me, I do the calculation every single day ---- that's exactly what I thought as well.   I have CNBC on 12 hours per day.  I google Dow Implied Open 20x per day.   All of this time, I could have been goofing off with my $$ in the SPY index.  Geez .... I had the rotation pegged but I didn't get out of my weed & EV battery stocks quick enough --- QS took me for a Nikola-type ride .... down 40% !!!

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Only a 680 point loss today. Not bad.

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Only a 680 point loss today. Not bad.

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