Tax scam explained! Pity the average Joe

link StumpCam Joined: Dec 31, 2003
Posts: 5784
5/15/19, 12:49:35 PM 
Here

Real-estate developers get huge deductions of paper losses that help reduce their tax bills, and the losses are magnified by the leverage they typically take on most purchases.
The main such deduction stems from the Internal Revenue Service’s determination of the useful life of a building. A typical commercial property, according to the IRS, can last 39 years. In return, the IRS allows the building’s owner to take a loss of 1/39th of the building every year. So for a building that costs $10 million -- not including the land underneath it --the developer could take a loss of more than $256,000 every year and count that against his or her other income, even if it has nothing to do with the building.
The more debt a developer has, the stronger the effect, said Gary DuBoff, a principal in the tax and accounting department for MBAF, an accounting firm in New York. Even if the developer only invested a fraction of his own money in the property and borrowed the rest, he still gets to take depreciation on the entire $10 million purchase. The interest expenses on his mortgage are also deductible.

link SnoopDog Joined: Jan 23, 2004
Posts: 10062
5/15/19, 12:55:15 PM 
In reply to StumpCam

https://a.msn.com/r/2/AABoelG" target="_" >Real Estate Breaks
Real-estate developers get huge deductions of paper losses that help reduce their tax bills, and the losses are magnified by the leverage they typically take on most purchases.
The main such deduction stems from the Internal Revenue Service’s determination of the useful life of a building. A typical commercial property, according to the IRS, can last 39 years. In return, the IRS allows the building’s owner to take a loss of 1/39th of the building every year. So for a building that costs $10 million -- not including the land underneath it --the developer could take a loss of more than $256,000 every year and count that against his or her other income, even if it has nothing to do with the building.
The more debt a developer has, the stronger the effect, said Gary DuBoff, a principal in the tax and accounting department for MBAF, an accounting firm in New York. Even if the developer only invested a fraction of his own money in the property and borrowed the rest, he still gets to take depreciation on the entire $10 million purchase. The interest expenses on his mortgage are also deductible.


None of this matters.

You know why?.....BROWN PEOPLE AT THE BORDER!!

link Bigzinc Joined: Dec 8, 2010
Posts: 4743
5/15/19, 1:07:02 PM 
In reply to SnoopDog

exactly...trump trumping them...the man is a master

link camos Joined: May 5, 2003
Posts: 48342
5/15/19, 1:10:39 PM 
In reply to StumpCam
A typical commercial property, according to the IRS, can last 39 years



If it is residential it is 27 and 1/2 years. But why is RE single out ,if you buy machinery for the same $10 million , you are able to depreciate it in 5*8 years or there about? lol

link StumpCam Joined: Dec 31, 2003
Posts: 5784
5/15/19, 1:18:20 PM 
In reply to camos

Haven’t got a clue! Just happened to come across the article while browsing!
It amazes me what the wealthy gets away with, while hardworking people can’t seem to catch a break!

link Runs Joined: Jan 3, 2003
Posts: 52602
5/15/19, 2:06:04 PM 
avatar image
In reply to camos

Office expenses, rent, utilities, supplies etc lol Union dues, uniforms, travel expenses. lol
501c’s

link SnoopDog Joined: Jan 23, 2004
Posts: 10062
5/15/19, 2:20:00 PM 
In reply to StumpCam

It amazes me what the wealthy gets away with, while hardworking people can’t seem to catch a break!


The same hard working people that voted for the Dotard and the Republicans in congress?

They are getting exactly what they voted for.

Very Happy Smile Sad Surprised Shocked Confused Cool Laughing Razz Embarassed Crying or Very sad Evil or Very Mad Twisted Evil Rolling Eyes Wink