917 Comments

Fun April 15 prank: Everyone withdraw all their money from the banks at the same time.

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I learned a new word for theft thanks to tax time this year: recapture. We sold a rental house that had been converted to personal use because our daughter rented it, so the govt took back our nearly 20 years of depreciation even though it was personal use for only a few of those. Mailing a hefty check to the US Treasury on top of what we had already paid in and knowing what the foolish ones do with it is its own kind of frustration.

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Just watched $26,000 disappear from my checking account this morning myself and I sympathize and share your pain. I hope they choke on it.

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Did you write Ukraine in your checkbook for that transaction?...:)

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good one

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Pay to the order of the Biden Crime Family.

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๐Ÿซ 

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I just saw more withdrawn in tax than my taxable income was last year, with an additional penalty for having not paid estimated taxes, for which it wasnโ€™t determined I owed, based on last yearโ€™s income. I am semi-retired and still consult for a few a few clients. Since they print money at will, I really donโ€™t see why they need our tax dollars anyway!

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They don't 'need' your taxes; as you say, they either print or borrow at will. The point is to continue your indebtitude to the machine, to only have a increasingly smaller portion of your own income.

As the saying goes, we are simply free range slaves on a tax farm...

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More truth! (See my comment just below.)

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Canโ€™t afford to live on social security so am also semiretired. But I now have to pay taxes on money I was required to pay into all those years? Money that was mis-managed and should actually be worth a million or more? I refuse to take money out of my investments, goodness knows how long Iโ€™ll live, my folks are in their nineties and all the grandparents lived that long too!

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The City of Galveston, Texas <puts hand on heart>, has a nice little solution for that. https://www.texastribune.org/2011/09/18/how-privatized-social-security-works-galveston/

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The only good idea Bush proposed was to phase out social security. It went nowhere nationally obviously, except that one county in Texas. And it probably wasnโ€™t even his idea! ๐Ÿคฃ

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Me too!

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Truth there. According to G. Edward Griffith in his book, The creature from Jekyll Island, they conspired to pass the Federal Reserve Act of 1913 so they would be able to print unlimited money, and then passed the income tax, 16th amendment, to have a cover for all the money they were going to have to spend.

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Except, if you read Article 1 Sec. 9 of the Constitution it might leave you scratching your head. The two provisions (Art. 1 Sec. 9 and 16A) on the surface appear to contradict one another. They don't. The clear, in-depth explanation is in ๐˜Š๐˜ณ๐˜ข๐˜ค๐˜ฌ๐˜ช๐˜ฏ๐˜จ ๐˜ต๐˜ฉ๐˜ฆ ๐˜Š๐˜ฐ๐˜ฅ๐˜ฆ: ๐˜›๐˜ฉ๐˜ฆ ๐˜๐˜ข๐˜ด๐˜ค๐˜ช๐˜ฏ๐˜ข๐˜ต๐˜ช๐˜ฏ๐˜จ ๐˜›๐˜ณ๐˜ถ๐˜ต๐˜ฉ ๐˜ˆ๐˜ฃ๐˜ฐ๐˜ถ๐˜ต ๐˜›๐˜ข๐˜น๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ช๐˜ฏ ๐˜ˆ๐˜ฎ๐˜ฆ๐˜ณ๐˜ช๐˜ค๐˜ข by Peter Eric Hendrickson. See my longer comment in this thread for more info. If your income is not tied to the federal government, and you aren't a US Citizen as defined in US Code Title 26 (unraveling of all done in the text of ๐˜Š๐˜ณ๐˜ข๐˜ค๐˜ฌ๐˜ช๐˜ฏ๐˜จ ๐˜ต๐˜ฉ๐˜ฆ ๐˜Š๐˜ฐ๐˜ฅ๐˜ฆ) you likely don't have an income tax liability. Crazy idea, right? Learn the truth.

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Peter Eric Hendrickson had an injunction entered against him and both he and his wife went to jail. Caveat emptor.

https://www.justice.gov/archive/tax/Gray_TroOpinion.pdf

https://www.journalofaccountancy.com/news/2015/apr/wife-of-antitax-author-sentenced-to-prison-201512122.html

If you want to read it to find out what NOT to do, it's posted here:

https://archive.org/details/pdfy-QeVmVA9r959Y04A2/page/n7/mode/2up

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Under the FairTax, illegal aliens, pimps (and their subordinates), drug dealers, and anyone else getting paid under the table get to pitch in! The fun doesnโ€™t stop there! Monday could have been just another Spring day. www.fairtax.org

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Same situation here! Back to paying quarterly taxes! On top of check we wrote! As if inflation hasnโ€™t taken enough!

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This is all by design tobankrupt the middle class and leave nothing for their children. Generational wealth only for the super wealthy. Only question no one asks is what happens when all the middle class are bankrupted? Probably will be confiscation of private property I think.

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The WEF and Bill Gates start controlling the population, thatโ€™s what. Read Margaret Anna Aliceโ€™s guest post from last year. They have waking dreams about this.

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Been sayin it for Decades now.....

Print all you want! Leave me out of it!

Using only .GOV products is way too one sided.

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Call paying โ€œtaxesโ€ what it is - protection money paid to criminals. This makes every taxpayer complicit in all the crimes perpetrated on US citizens as well as peoples around the world.

The blood is on OUR hands.

โ€œWhen the government fears the People, there is Liberty; when the People fear the government, there is tyranny.โ€ Do you recognize which side of this statement you fall in?

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Great points, Traveler, and well said. However, that quote was probably written before there was a Deep State. Before them, we probably knew who was governing us.

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pretty sure there has always been a deep state. Trust me on this one.

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at least a far back as the Whiskey REbellions of early 1800's. I also am convinced that the Louisiana Purchase was either a deep state move in its own right, or a major part of beginning the deep state.

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The U.S. Corporation was created by the โ€œdeep stateโ€.

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I would not be surprised. But unless thereโ€™s some law I donโ€™t know about that restricted the use and ownership of cannons to government forces, the citizens had access to the same weaponry that the government did.

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Doesnโ€™t make it less so, does it?

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Not quite as much here, but same. Beyond infuriating. To pay through the nose all year long, and then have to STILL pen a big check to the thieving swine is just a kick in the teeth. Especially when you know itโ€™s just going to be completely wasted. ๐Ÿ˜ 

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Same here.

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wasted, or worse yet, used to oir direct hurt.

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My โ€œrefundโ€ has now turned into $00.00. CA must be sending that zero out letter to EVERYONE just hoping we donโ€™t respond?! They lose millions of $ and canโ€™t find it, run this state into the ground in soooo many ways and then take what Iโ€™m due? The fight has only begunโ€ฆโ€ฆ.CA is a joke more than ever. Yes, Iโ€™d love to move but Iโ€™m staying for my grandkids. Someone needs to indoctrinate them the โ€œrightโ€ way!

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As a resident of the Free State of Florida, I often wonder how wonderful these blue states would still be if people like you had the guts you do. But then I remember all the creativity we saw this last election and understand. Still, I am in awe of people like you.

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Painful!

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Been there done that, I am sorry and it does hurt.

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Same here! Big check! Plus quarterly taxes!

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Me, too. A big check for me.

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Just think, itโ€™s going for more $$ cards and phone for all the โ€˜new-comersโ€™๐Ÿ˜ก๐Ÿ˜ก๐Ÿ˜ก

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"The income tax created more criminals than any other single act of government."

- Barry Goldwater

This is the nub of the issue in this country. The rest is sequela imo.

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Barry Goldwater...hmmm. Wasn't he the nut that was going to nuke innocent children? Oh wait, that was 1964-style demoncrapper's propaganda. Would have taken the country in a better direction than LBJ did.

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For sure

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Government is an extraction tool....

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don't worry, you can find 535 LoopHOES in congress

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The wealthy can afford tax specialists who figure out how to avoid paying taxes. Only the working plebes who can't afford accountants end up paying much.

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Then they sell us out to China for their own gain

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This happened to us 3 years ago. SUPER PAINFUL for sure! it was a defining moment of newfound hatred i developed for our government because I knew all that $ was being used to intentionally coerce and murder people via propaganda and shots.

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Government is our enemy.

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If your daughter rented it, that is a business transaction. If it was arms length, market value, documented by contract, etc...

Unless you still claim her as a dependent, I guess. I'm not a tax lawyer/consultant but if you haven't already done so, check with one on this topic.

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My son rented a house we owned . He passed d us rent. No tax problems

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A CPA did our taxes this year. Not market value. Plus capital gain. ๐Ÿ™„๐Ÿ˜’๐Ÿ˜”

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Not market value could be a problem. Keep in mind that a CPA is not necessarily a tax expert.

Capital gain? Did you sell it also? If so, that could be the reason for the depreciation recapture.

Depreciation recapture has been around a long time. The idea behind it is to encourage investment by accelerating the write off of the asset and reducing the short term tax burden. However, if you dispose of that asset before its normal depreciation life, you'll probably need to return some of that benefit (short term reduction in taxes). This prevents investors from buying something, writing it off, then selling it right away (unless you are a DC politician...).

Again, this is my understanding of the concept and not tax advice in any way shape or form.

fwiw...

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Maybe it sort of makes sense, but if itโ€™s all the same to you Iโ€™m gonna just go ahead and hate the IRS. ๐Ÿ˜Ž

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Iโ€™m with you. Also hate the lawmakers who made and passed these laws!!!

The problem is always that they make a law trying to get X result and then have to add convoluted conditions to prevent people from going around it. Our whole tax system is a byzantine mess.

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If the governments were minimal in what they do (meaning that if

the governments were truly constitutional governments old America style), there would be no involuted, convoluted need of involuted, convoluted tax codes. This would also mean that capital, in private hands, would not be continually misallocated into non-productive country destroying uses.

Remember 'smart' Susie Orman with all that 'smart' clever advice and tips? The Dumb thing about Little Susie is that people think they really need her Dumb advice. What people really need is to get rid of as much Dumb Government as they can.

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No argument from me. Ted Cruz has the right idea on taxes.

Ironically, or is the correct term "indicitavely", accelerated depreciation and recapture rules were written, I think, about 25 years ago. We had a few reasonable folks in control back then, not the numnuts we have now! Although, these are the same folks that gave us the Patriot Act, so maybe not...

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Janice - Words Beyond: Go for it! Hate away. Hate as much and as long as it feels good to you. LOL !

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I hired a CPA to do my taxes when I first started my business in 1989. She made a huge and glaring omission that would have cost me a lot of taxes except that I, her paying customer, caught the error.

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I know this will read nutty, but I suspect you don't have a business as defined in US Code Title 26 (the tax code). There is a special definition for business in the tax code. You can't read said definition as written, assuming the meaning/definition of common words. There are pretzel-like legal terms throughout the code, only nobody recognizes them as such. Most people think they're reading English words. Legal terms are not the same thing as English words. See my comment in this thread about ๐˜Š๐˜ณ๐˜ข๐˜ค๐˜ฌ๐˜ช๐˜ฏ๐˜จ ๐˜ต๐˜ฉ๐˜ฆ ๐˜Š๐˜ฐ๐˜ฅ๐˜ฆ: ๐˜›๐˜ฉ๐˜ฆ ๐˜๐˜ข๐˜ด๐˜ค๐˜ช๐˜ฏ๐˜ข๐˜ต๐˜ช๐˜ฏ๐˜จ ๐˜›๐˜ณ๐˜ถ๐˜ต๐˜ฉ ๐˜ˆ๐˜ฃ๐˜ฐ๐˜ถ๐˜ต ๐˜›๐˜ข๐˜น๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ช๐˜ฏ ๐˜ˆ๐˜ฎ๐˜ฆ๐˜ณ๐˜ช๐˜ค๐˜ข.

Several weeks ago another C&C commenter who has become educated about the truth (via ๐˜Š๐˜ณ๐˜ข๐˜ค๐˜ฌ๐˜ช๐˜ฏ๐˜จ ๐˜ต๐˜ฉ๐˜ฆ ๐˜Š๐˜ฐ๐˜ฅ๐˜ฆ) used the phrase, "starve the beast." Well worth the investment of your time IMHO.

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Yeah, see a tax lawyer. There are some creative ways to structure this.

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And Iโ€™m not sure you save anything by seeing a tax layer. They are quite expensive. You may end up paying just as much to them as you would on your recapture, but at least it wouldnโ€™t go to the government.

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I hate that we canโ€™t do edits on our posts.๐Ÿคฆโ€โ™€๏ธ

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If I recall my business years correctly, itโ€™s not the personal use that causes recapture. Any time you depreciate something down to nothingness and then sell it for something, you have recaptured the depreciation and thatโ€™s profit.

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With it being personal use, we lost the expense deductions for those years.

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Zelensky thanks you and said to give you his regards from one of his many multi-million dollar properties ๐Ÿ™„

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Remember Biden claiming the new IRS agents wouldn't go after anyone who makes under $400K? I saw a piece last night about how something like 67% of the audits are on people who make under $70K.

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CMCM - Source for that info? I'd love to quote it!

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So often, I think how ashamed of us the Founders would be.

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The Pentagon needs the $$$$

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So does Zelensky and his corrupt cronies! ๐Ÿ˜ก

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We have gone broke on the money 'we' allegedly gave the Pentagon. And all we have to show for it is 'the bio-weapon' and a failing military transitioning in high heels.

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Skunk, that's not even remotely the biggest consumer of our federal budget - Social Security and Medicare dwarf it. Very soon, our interest payments on our debt will outstrip the defense budget.

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I often wonder how the Beltway gang spent the funds taken out of my wages for Social Security & Medicare. At least, I would like to know which conflicts I funded.

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You should have kept your rental house as a passive-income property and continued to rent it out - either to your daughter or maybe to someone else. Then put all of your real estate into a trust and hand it down to your kids or other family members.

Just a thought...

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Wisdom. Glad you posted. More people should know. Actually, land trust first, for your homestead as well, then rental contracts, but in reality you can retitle the property at any time.

You might appreciate learning the truth about the federal income tax. See my longer comment in this thread (1st level reply to Based Florida Man) about ๐˜Š๐˜ณ๐˜ข๐˜ค๐˜ฌ๐˜ช๐˜ฏ๐˜จ ๐˜ต๐˜ฉ๐˜ฆ ๐˜Š๐˜ฐ๐˜ฅ๐˜ฆ: ๐˜›๐˜ฉ๐˜ฆ ๐˜๐˜ข๐˜ด๐˜ค๐˜ช๐˜ฏ๐˜ข๐˜ต๐˜ช๐˜ฏ๐˜จ ๐˜›๐˜ณ๐˜ถ๐˜ต๐˜ฉ ๐˜ˆ๐˜ฃ๐˜ฐ๐˜ถ๐˜ต ๐˜›๐˜ข๐˜น๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ช๐˜ฏ ๐˜ˆ๐˜ฎ๐˜ฆ๐˜ณ๐˜ช๐˜ค๐˜ข.

Brightest blessings.

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Agreed. That's why I said she should continue to rent it out, then she shouldn't have to retitle it no matter who who she rents it to.

Putting all her real estate into the trust would include her homestead properties as well.

Thanks for the suggestion on your article, I did not see that earlier; but perhaps you had not yet posted when I was reading through the comments.

Have a good day...

(I'm assuming you are a male, but I think you might be female, so I will adjust the closing salutation)

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I'm late. You probably didn't miss.

Wiser is each property in a separate land trust. Once you have a template it's lather, rinse, repeat. There's a bit more to it, all for protection from both government (probate, SoS entities) and from becoming a target for things like frivolous lawsuits, even if all you "own" (even if you have no mortgage) is a homestead property.

Education is priceless.

Female.

Brightest blessings.

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If you follow the advice in this book, you could wind up like its author. Here's a short history:

http://tpgurus.wikidot.com/peter-hendrickson

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Yes, the government has put him through the mill. No argument. That said, consider the source. I suspect it ranked near the top of your search results. I don't know what search engine you used, but suspect it might be among the list I, personally, have expunged from my life. Caveats abound. Have you read the book? In its entirety?

Some people, carefully, thoughtfully, with a great deal of patience in the pursuit are living tax-free because they don't have a tax liability.

Have you seen Aaron Russo's documentary From Freedom to Fascism? It's nearly 20 years old. In the context of the film people were having their eyes opened. Jurors, in one case. Deciding in favor of a defendant that argued he had no tax liability. People are waking. Slowly.

To each his own. I choose not to live in fear.

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I can see that. I, on the other hand, choose not to live in jail. There are all kinds of laws I find inconvenient or even disagree with, but I'm not going to flout them. Allowing each individual to live by his own laws is what's known as "anarchy."

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Another thought. She buys it from you, you get a mortgage for the value of the house, and she makes monthly payments on the debt. In accordance with the annual gift tax exclusion, say $17,000 in 2023, forgive that amount of the loan each year. Just spitballin'. Ask someone who knows stuff.

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Your comment is relevant to the sale of a house, which was not what I was commenting on. My point was the original poster did not have to sell her house, so it was a different topic, she could have kept the property as a passive-income property.

In the original-poster's situation, the IRS is seeking recapture of the property's past depreciation, which has nothing to do with the gift tax or the effort put forth to qualify for the exclusion.

My concern with your scenario is the US Treasury, and its policing entity the IRS, might take issue with that scenario.

Also, if you forgive HER monthly payments on HER debt, that is a taxable event for HER, after all she is buying the house, according to you so, there would be escrow documents involved in that transaction, i.e. a paper trail.

I'm not sure what you mean by "ask someone who knows stuff," in light of the fact I was talking about another type of scenario; but perhaps I'm misunderstanding you.

Apologies if that is the case.

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Oh, I wasn't disagreeing with you, just throwing out one of my half-baked ideas, of which I have many. (Something to look forward to?) I see you are someone who knows your stuff, and no one can responsibly advise her on what to do unless they see her estate plan, income, assets, etc., and those of her beneficiary. It's possible the loan forgiveness would not result in tax liability for her, depending on how much it is and how much income she already has. Or, like you said, maybe it would. It's complex, isn't it? How did you get into it?

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The loan would have to be documented for one in order for the IRS to find it and pitch a fit over it and it's too hard to say how any of their property is structured, we are not their accountants let alone their tax accountants. Any escrow documents would be a dead giveaway to confirmation of a loan forgiveness.

Oh how did I get into this - let me count the ways. True story: I was a very poor teenager, 19 years old and new mother. No work or schools skills. I couldn't rub two nickels together to save my life.

To give you the short version, I decided to go to school one day and fell in love with accounting. I loved accounting and school so much I refused to leave my university and ended up writing a thesis, receiving an MSA in that discipline.

I love auditing more, but tax is just fine with me as well.

Please don't misunderstand me, I don't consider myself an authoritative figure in my field. I humbly consider myself a perpetual WIP - Work In Process.

You seem like you are in the know. Do you work in the accounting, finance, or estate-planning business?

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No good deed goes unpunished, or underappreciated or unpenalized?

IRS

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Janice, My husband and I had a very similar experience. We sold a rental property and immediately invested the majority of the money into a piece of land to build our final home. We knew we would have to pay the capital gains taxes but we ended up with "depreciation recapture". No real estate person ever told us about this when buying rentals. This was our first sale of a rental and wow! What a shock that was. We too had to stroke a hefty check to the IRS (while uttering certain expletives). We decided to NOT to sell the other rental.

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that is terrible! did you not have a tax attny??

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I am not sure which one of us youโ€™re asking, but we did have a tax guy do ours. Although it seems the govโ€™t has only one guideline: You made money? Send it in.

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I owned a couple of companies nearly 10 years ago. One year, we made a killing. The government also made a killing. After all of my expenses, and even with a tax attorney, they took 49% of net.

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You can buy Investment Tax Credits (ITC) on the secondary market for 60 cents on the dollar.

I haven't paid taxes in 17 years by doing that.

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Or not lay out anything at all. See my longer, first level (second level?) comment in this thread about ๐˜Š๐˜ณ๐˜ข๐˜ค๐˜ฌ๐˜ช๐˜ฏ๐˜จ ๐˜ต๐˜ฉ๐˜ฆ ๐˜Š๐˜ฐ๐˜ฅ๐˜ฆ: ๐˜›๐˜ฉ๐˜ฆ ๐˜๐˜ข๐˜ด๐˜ค๐˜ช๐˜ฏ๐˜ข๐˜ต๐˜ช๐˜ฏ๐˜จ ๐˜›๐˜ณ๐˜ถ๐˜ต๐˜ฉ ๐˜ˆ๐˜ฃ๐˜ฐ๐˜ถ๐˜ต ๐˜›๐˜ข๐˜น๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ช๐˜ฏ ๐˜ˆ๐˜ฎ๐˜ฆ๐˜ณ๐˜ช๐˜ค๐˜ข. Apologies if I haven't shared previously. Well, I have, just maybe not so's you caught it in the mix. You're on the right track for sure.

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Exactly right. Our governmentโ€™s viewโ€ฆ.what more can we steal from every person who tries to create a decent life?

My guess is the recapture was due to sale (capital gains) and not doing a 1031 exchange which protects profits by rolling them into another property (also on 1031 all deferred taxes are essentially forgiven on death and heirs can sell based on value at time of death). Theyโ€™ve also been after 1031 exchanges as well because it allows for generational wealth to be createdโ€ฆ..which they donโ€™t want to allow.

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Or more accurately, "you made the money....most of it is ours."

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I never had a tax attorney. But also, I never had a car payment or a house payment, and I 'own' a modest brick ranch house and two cars. And only once did I have credit card debt payments on 2,000 of borrowed dollars (lesson learned and never again). The two grand was for sandpaper, saw blades and bits, etc. which I needed to finish up on a house I was building for my mom. And by the way, I still have some of that left over sandpaper in a tin box from some twenty-seven years ago.

The credit card company is a strange thing. And for some reason the credit card company sent me a credit card which I have kept all these years. The first strange thing is that the credit card company never asked me to disclose what my income was, which I would have refused to do. The next strange thing is that years later the credit card company lower my credit rating ... and then later lowered the amount I could 'borrow' from 20K to 15K. I could never figure that out. Because you would think that a guy who never borrowed any money for any purpose would have the best 'credit rating' of anybody. (Okay! I know how they think. Someone has to borrow and repay to have a 'credit history'. Well, that makes me a-historical a far as the Credito Companie is concerned.)

My motto has always been: if you want to have everyone else's results, do what everyone else does. If you want something different, do something else. This, of course, has ramifications. I'll never be a billionaire. But on the other hand, Bill Gates, George Soros and Elon Musk, et alia, were never my object of aspiration. Instead, I am content to be a little guy with no debt.

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best thing to do with a credit card is to put your monthly expense items on the card, then zero the balance every month that way you maintain the available spending amount, incur no interest, have an active account.. and if it is a rewards account a few sheckeles dribble in to your pocket. amske sure its a "no annual fee" card, too.

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Exactly! I have done this for my entire adult life. I also froze my credit with all 4 agencies, which works quite well and I don't get any of those continual credit card offers, plus no one can open a card in my name.

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I am sure that you Cleaver Cleavers are the smarter ones. And I am the hopeless, but not hapless one. My wife pays all the bills, she jumps through the coupons hoops, and saves the five percent with the Lowe's card or whatever. Not me! And I do have a 'rewards' credit card rewards in the thousands stacked up to the moon. I refuse to use them. It's against my religion!

As a kid, a very young kid, my Dad took us to the circus. It was the big one in Madison Square Garden. Back then the beared lady, the fat man, these were still okay. And they would have had a three headed man or woman if they could have found one. As well as these, and in the big three ring circus, I saw the dog and pony shows, tigers and/or lions and the cracking of the whip ... and from them on I knew one thing. I never wanted to be someone else's trick pony or dog hobbling along on two legs and acting so-undog-edly absurd. No cracking whips for me.

I use the credito card for eBay and whatever few trusted e-merchants is use. That's it.

I do look for deals, bargains and the such. I was always fortunate enough say past the age of fifty to make money enough to buy whatever I wanted new. And I remembered my first new trucks and cars very well ... and how nice to no longer be riding around in wrecks.

Thanks for writing. I always find you interesting.

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The best thing I learned from my parents was to only buy what you have the cash for (except for a house and perhaps a car). I owe nothing except what I have spent in the last 30 days, and while I have a couple of cards for convenience, I have paid them off each month since....forever. I never carry a balance, and have never paid any interest. What I learned from my sister, who once worked in a bank's credit card division, is that they all encourage you to accumulate debt so you will have to pay them interest and get ensnared in the whole credit system. The more credit you have available compared to the amount of that credit in use, as well as your on-time payment history, determine your credit rating AND the amount of credit they extend to you. It's a criminal system that a lot of people get caught up in, especially young people.

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My parents taught me the same thing. But the best was the thing about, If Johnny jumps off a bridge, would you do it too?" That one served me well when C19 Terrorism reared its ugly murderous head. Well, a lot of Johnnies ... Dick and Janes jumped of the Covid Bridge. And maybe they never got the lesson. Who knows?

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Just curious . How did the IRS know it was your daughter who rented the house? Unless you diverted it to personal use without knowing the consequences?

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Because there are criteria to meet as a rental with deductible expenses and Iโ€™m a rule follower. ๐Ÿคท๐Ÿปโ€โ™€๏ธ

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shouldn' have declared it was your daughter living there, just another tenant. What, are they gonna nip round and check her birth certificate to verify she IS your offpsrig?

too bad these gummit dweebs don't actually EARN their "living". More like poltiical welfare. but I know, I'm only singin' to the choir here.

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Iโ€™m sorry Janice!! I have rental properties too and while not an accountant, I attend tax seminars yearly to stay up to date on those pesky laws. Primarily due to a weird situation that happened to me, that could have been avoided if Iโ€™d done the paperwork differently.

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I understand that recapture only occurs upon a sale. But does having the property in a Trust, now occupied by the successor trustee, solve the problem of recapture (from use as a rental property a decade or more ago)?

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Youโ€™re my kind of people, the idea of this makes me gleeful.

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Apr 15
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We have become the old Soviet Union.

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This is the supreme irony. We are now the Soviet Union. And Russia is more like us in the years of my childhood.

We now live in fear of hunger (destroyed food supply) and freezing our asses off in the winter (broke Woke everything policy).

It's amuses me no end how someone like Bennie Two Noodles hates the Putin who is no puppet president, but is okay with the little house of horrors we have in the form of the now United Sates, including Mr. Puppet President Pedo. Ironies abound and horrors only grow.

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Yes, this! ๐Ÿ˜ข

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Iโ€™m self-employed. I donโ€™t make a huge amount, but it does help pay our bills. Between state and federal, they took nearly 30% of my income.

So, why do I have to pay taxes on the sale of my property if I already pay property tax? I mean, Iโ€™ve been paying taxes on it for decades now. Although not as much as in other states, they inch up every year. I feel that anything I make (capital gains) belongs in my pocket where it will be used judiciously rather than theirs.

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It's called Babylonian Money Magic, and the Babylonians started it way back in OT times. It's basically holding your coinage (gold and silver back then) for convenience use with tokens or paper); chaging you for the priveledge and then loaning your currency to others and charging them interest. Earliest form of fractional banking reserve. Usary was prohibited by God in the OT for it's evil basis. They accumulated wealth for themselves. It was fueled by evil, gods Baal and Molack and they required child sacriface to fuel the power they gave to their adherents. The Khasarian Family (from Egypt anf Phoenicia)that established this gained power as "bankers" and they spread through history and spread from country to country gaining wealth eventually reaching the English Crown and then America and now we have our current corrupt system. Do an internet search (NOT Google) for the Kharzarian Mafia and see what you find.

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it is sort of like wning a car. You pay tax on it when you first buy it, you pay their annual bribe for the priviledge of driving it on the roadswe are overtaxed to build and, in some rare cases, manitain. We pay tax on the fuel we burn to make them go, when when it gets sold they collect more tax on that sale. not to mention tax on every part you purcjase tp kaap it rolling, and any labour you hire to fit those bits to the car. On tope of that, they hold their hand out every few years for a new Mother May I Drove My Car ticket to keep in your pocket, indicaating you are deigned worthy enough to actually get behind the wheel of that motorcar.

All of that is to feed the corrupt monster thus enabling it to torture and deplete us further each year.

that's why I buy and drive old junkers.. far lower tax to get in, nowhere near as complex to keep running, and when possible I buy the parts in a neighbouring state which have no sales tax. Further advantage is they are far less a target for theft or jacking. Not to mention far simpler to keep them running. NO confusers to mangle, er, I mean manage, the fuel feed systems they;ve mandated of late.

Get a lot of comments and questions on them, too, which is fun. And NO this one is NOT for sale........

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Yeah, Iโ€™ve been thinking lately of buying an older car that doesnโ€™t have all the fancy computers in it because Iโ€™m tired of it all and I want a stick again. (No one will steal it then. LOL) They are complicated to maintain and expensive. The newer ones have kill switches and now companies like Ford, BMW, and one other have agreed to put in this GPS device that limits you to where you can drive and when. Sounds like a free country, doesnโ€™t it?

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I read the Market Ticker blog and Karl has long been a proponent of older cars for the very reasons you cite.

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I have replied elsewhere in this thread with the seemingly unbelievable news that 1) you likely don't have a business as defined in US Code Title 26 (the tax code) and 2) you likely don't have a federal income tax liability. The kooks are out posting on C&C? Not so.

See my longer 1st level comment in reply to BFM about ๐˜Š๐˜ณ๐˜ข๐˜ค๐˜ฌ๐˜ช๐˜ฏ๐˜จ ๐˜ต๐˜ฉ๐˜ฆ ๐˜Š๐˜ฐ๐˜ฅ๐˜ฆ: ๐˜›๐˜ฉ๐˜ฆ ๐˜๐˜ข๐˜ด๐˜ค๐˜ช๐˜ฏ๐˜ข๐˜ต๐˜ช๐˜ฏ๐˜จ ๐˜›๐˜ณ๐˜ถ๐˜ต๐˜ฉ ๐˜ˆ๐˜ฃ๐˜ฐ๐˜ถ๐˜ต ๐˜›๐˜ข๐˜น๐˜ข๐˜ต๐˜ช๐˜ฐ๐˜ฏ ๐˜ช๐˜ฏ ๐˜ˆ๐˜ฎ๐˜ฆ๐˜ณ๐˜ช๐˜ค๐˜ข. It is eye-opening. The book, not my comment. ๐Ÿ˜œ You deserve to understand the truth it reveals.

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I also looked this book up. Itโ€™s available with annotations at this website for free:

https://www.losthorizons.com/CtC/FrontMatter.htm

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And thank you. ๐Ÿ˜Š

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