I tried to better understand what the article meant by the $50,000 "deduction" for business startup expenses. Business expenses are already deductible without a cap. I think this is a reference to carry-forward credits for net operating losses, but I am not sure. Hey @HeelYeah2012, do you know what Harris means by this proposal?
Stock Market/Investing/Fin Planning Catch-All
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HeelYeah2012
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Hey, thanks for the mention but no, I don’t. I am an accountant and I have my CPA but I am not a tax guy by trade. I worked in audit for a Big 4 firm and now am a Corporate Controller, headed more down the CFO path than the tax path.
The only tax I know is enough to do my own family’s tax return with our super simple W2 income
OK, my next thought is @superrific? Any ideas?Hey, thanks for the mention but no, I don’t. I am an accountant and I have my CPA but I am not a tax guy by trade. I worked in audit for a Big 4 firm and now am a Corporate Controller, headed more down the CFO path than the tax path.
The only tax I know is enough to do my own family’s tax return with our super simple W2 income
heelslegup
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Billionaire investor Mark Cuban on Thursday insisted that Democratic presidential nominee Kamala Harris would not tax unrealized gains as president.
“Every conversation I’ve had is that it’s not going to happen,” Cuban said on CNBC’s “Squawk Box.”
Cuban, who says he speaks with Harris’ team frequently, maintained to CNBC that she is not interested in taxing unrealized gains.
He cautioned, “I’m not going to speak for the vice president, she makes the final decision.”
Still, “I’m talking to these folks three, four times a week, having back-and-forth conversations, and their verbatim words to me is, ‘That’s not where we want to go.’”
“We need to find alternative sources of revenue,” Cuban said Harris’ aides have told him, “and those alternative sources of revenue are meant to replace what the unearned income -- the unrealized gains tax from the Biden plan would have implemented.”
Cuban is neither a Republican nor a Democrat, but he was one of more than 100 venture capitalists earlier this summer who endorsed Harris for president.
Cuban’s remarks could signal another break on tax policy between Harris and President Joe Biden, who dropped out of the presidential race in July and endorsed the vice president as his successor.
Biden’s fiscal 2025 budget plan proposes a 25% minimum income tax on Americans with wealth above $100 million.
Unlike current law, Biden’s budget would apply an annual tax on unrealized gains — the increased values of assets that have not been sold — for the richest Americans. The plan has received pushback from Republicans and even some Democrats.
Harris, who took over the Democratic ticket less than four months before Election Day, has not explicitly ditched the plan to tax unrealized gains.
“Every conversation I’ve had is that it’s not going to happen,” Cuban said on CNBC’s “Squawk Box.”
Cuban, who says he speaks with Harris’ team frequently, maintained to CNBC that she is not interested in taxing unrealized gains.
He cautioned, “I’m not going to speak for the vice president, she makes the final decision.”
Still, “I’m talking to these folks three, four times a week, having back-and-forth conversations, and their verbatim words to me is, ‘That’s not where we want to go.’”
“We need to find alternative sources of revenue,” Cuban said Harris’ aides have told him, “and those alternative sources of revenue are meant to replace what the unearned income -- the unrealized gains tax from the Biden plan would have implemented.”
Cuban is neither a Republican nor a Democrat, but he was one of more than 100 venture capitalists earlier this summer who endorsed Harris for president.
Cuban’s remarks could signal another break on tax policy between Harris and President Joe Biden, who dropped out of the presidential race in July and endorsed the vice president as his successor.
Biden’s fiscal 2025 budget plan proposes a 25% minimum income tax on Americans with wealth above $100 million.
Unlike current law, Biden’s budget would apply an annual tax on unrealized gains — the increased values of assets that have not been sold — for the richest Americans. The plan has received pushback from Republicans and even some Democrats.
Harris, who took over the Democratic ticket less than four months before Election Day, has not explicitly ditched the plan to tax unrealized gains.
I’ve said for a while that Kamala’s quasi-wealth tax would never become law. Cuban is right.
HeelInTheOzarks
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OK zizzlers, explain this to me like I am a dum-dum because my eyes glaze over on financial stuff.
I have some credit card debt that I wanted to pay off so I called my bank (have had a previous personal loan through them when I was going through my divorce that is since paid off). The lady is now trying to talk me into doing a home equity line of credit instead.
So does mean they put however much money in an account that I can draw on for 10 years, while I pay the interest? And then at the end of the 10 years I have to pay back what's been used from the account plus interest? I feel like I am totally missing something.
I have some credit card debt that I wanted to pay off so I called my bank (have had a previous personal loan through them when I was going through my divorce that is since paid off). The lady is now trying to talk me into doing a home equity line of credit instead.
So does mean they put however much money in an account that I can draw on for 10 years, while I pay the interest? And then at the end of the 10 years I have to pay back what's been used from the account plus interest? I feel like I am totally missing something.
They open a line of credit - there is typically a draw period of 10 years where you can take money against the line. You typically only need to make monthly interest payments during this draw period (although can pay principal). Then there is a repayment period (20 years for example) where you are paying principal and interest to pay back the outstanding balance amortized over 20 years.
Check the terms offered to you: interest rate - typically variable and some spread over prime rate, draw period, repayment period. You might also be able to deduct the interest on the HELOC if the funds are used to improve your home...but should consider where you are against the standard deduction and if the funds will be used that way. Also keep in mind, if you default on your credit card payments it just wrecks your credit, if you default on a HELOC it will wreck your credit and you could lose your home.
HeelInTheOzarks
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So let’s say someone took 50k into this account and only used 20k. Does that mean at the end of the draw period that the bank keeps the unused 30 and I would pay the 20 plus interest?
Yes, but you'll be accruing (and paying) interest on the 20k you took out throughout the draw period.
Typically, HELOC balances convert to fixed, fully amortizing debt at the end of the draw period. Your credit line (limit) is somewhat irrelevant at the end of the draw period because the line is can no longer be tapped- what matters is the balance. In most cases, you can borrow, paydown, borrow again, etc. as much as you want during the draw period - whatever remains outstanding at the end converts to perm debt.
HeelInTheOzarks
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Thanks for the explanation - this seems like the last thing I should ever do lol
SmilingJack
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Aren't most Helocs highly adjustable like daily or weekly or tied to the LIBOR or something? I'm so damn old I remember negative amortization. Look it up.
HeelInTheOzarks
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Yeah from what I have been reading, the interest rates move all over the place, but you can get a fixed rate on what you withdraw (up to a certain amount of times).
heelslegup
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heelslegup
Distinguished Member
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heelslegup
Distinguished Member
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heelslegup
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More stock market crashing today. lol