Re: Re: Re: It's not what you gross...

Posted by Skycarp on April 30, 2004 at 07:18:27 from (63.77.108.2):

In Reply to: Re: Re: It's not what you gross... posted by paul on April 30, 2004 at 06:30:55:

To Follow up on what Paul said;

This is the reality and result of our current tax
system. I lived it when I retired recently. In the
early '70's I bought a piece of property for
$28K. Over the years I paid off the loan and
converted the property to income property. I
recently retired I wanted to move to a slower
life, so I sold the property at a nice profit of
$325K. Much of this increase in value was a
result of inflation over the years.

Because of the basis of $28K the IRS
intended to tax me on the difference between
basis and selling price (Capital Gains Tax at
15%). I had 45 days from closing date to
identify property I was going to reinvest the
profit in, and I had to close the deal by the time
taxes were due for that tax year, or pay capital
gains tax on the whole amount.

This to save paying a huge tax on evaluation
as a result of inflation over the years. I didn't
cause inflation, the government did. And then
the government intended to make me pay for
it. This may be the cause of some country
property prices being out of reach of the local
folks. We urban folks need to protect our
investment in inflated land prices when we
retire.

Sorry it is happening to the country families,
but all things are not equal in our system.

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