Politics

[Tanks]

If grocery prices climb along with escalating fuel prices, the geniuses in the Trump administration can kiss winning the mid terms goodbye.
Trump will deal with 2 years of impeachment and harassment.
The best laid plans of mice and men.

I don't see any scenario where the GOP will hold the House. So, he will deal with two years of investigations and impeachment etc. regardless of what happens in the near term.

 

[Altitude sickness]

Or do not have a house note. In that case, the house becomes an appreciating asset that will benefit your heirs with no attached burden other than a property tax for however long they maintain ownership. They would also owe a capital gains tax but only on the gains realized since inheritance.

And yes, we too much prefer ownership. Also, Texas is a very generous state to disabled veterans with respect to property taxes.

I own two homes that have appreciated in value. But it’s a capital gain. Not an asset.
I am playing semantics of course. But the simple definition is a liability takes money out of your wallet and an asset puts money in your wallet.

 

[Brent in Az]

I don't see any scenario where the GOP will hold the House. So, he will deal with two years of investigations and impeachment etc. regardless of what happens in the near term.

I am trying to remain optimistic......
Trump isn't helping matters IMO.
The thought of the children back in charge of the house makes my skin crawl.
Jackwagon Jeffries is the stuff of nightmares.

 

[Red Leg]

I own two homes that have appreciated in value. But it’s a capital gain. Not an asset.
I am playing semantics of course. But the simple definition is a liability takes money out of your wallet and an asset puts money in your wallet.

Interesting video. I continue to maintain a home with equity is an asset - one without a note is a much larger asset. Yes, unless inherited, it is an asset that will be legally expressed in part as a capital gain - that value above purchase price and improvements cost basis. But the original full cost basis is also recovered if the house has no note. If inherited, there is no capital gain issue at all generated prior to inheritance. I realize some personal finance educators claim an "asset" must generate cash flow. I do not have an MBA, but my mentor at my Tuck executive course had a rhetorical question to address this very issue. If you were required to prepare a declaration of your net worth, would it include your home as an asset or liability? I rest my case.

 

[Flipper Dude]

It’s just semantics. Of course, equity in your home is an asset. Albeit a volatile one in a crazy housing market. It’s an asset with an expensive carrying cost, although mainly because it’s transparent. Renters pay property taxes and maintenance as well, it’s just rolled into the rent.

 

[Altitude sickness]

We agree with each other. I don’t argue with General Officers. A paid off thing can be in the asset column.

But just because you own a thing without payments. Does not make it an asset.


It’s potentially a place holder of value but if it’s not generating income it’s technically not an asset.

It’s Semantics and definitions only since we need shelter and a place to live.

Of course It’s best for the house to gain value over 15-30 years. Or if you never had to pay interest, insurance, taxes and maintenance out of your wallet.

 

[Altitude sickness]

Flipper I agree. That’s why I bought houses. But in the world we live in the government calls it a capital gain. It’s a liability until it’s paid off and you sell it.

You can’t claim the value of your house as income. It’s a capital gain.

If you still own it. it’s a liability. Unless you found a way not to pay taxes, insurance or maintenance.

 

[deewayne2003]

Interesting video. I continue to maintain a home with equity is an asset - one without a note is a much larger asset. Yes, unless inherited, it is an asset that will be legally expressed in part as a capital gain - that value above purchase price and improvements cost basis. But the original full cost basis is also recovered if the house has no note. If inherited, there is no capital gain issue at all generated prior to inheritance. I realize some personal finance educators claim an "asset" must generate cash flow. I do not have an MBA, but my mentor at my Tuck executive course had a rhetorical question to address this very issue. If you were required to prepare a declaration of your net worth, would it include your home as an asset or liability? I rest my case.

Wholeheartedly agree with you and you bring the full spectrum into view about owning outright; especially so if you inherit a quality house.

Where people screw up overspending on houses by thinking the bigger the purchase the bigger the investment; when they should be concentrating on how fast they can pay it off.

I rather like the Texas model, you want to build a Mc Mansion in central Austin then your looking at 2.4% on the millions in value annually.

Likewise I know a 80yo man that lives in a 800sqft 1b/1b 4 blocks from UT’s campus on a BIG lot that he bought in 1974 for $21K and he pays $7K annually in property taxes….. not bad for a paid for asset with no mortgage since 1984 that has a current market value of $900K for the lot.

As you also stated Texas has great tax breaks for disabled veterans and taxes cap at certain age for all residents.

 

[Flipper Dude]

Flipper I agree. That’s why I bought houses. But in the world we live in the government calls it a capital gain. It’s a liability until it’s paid off and you sell it.

You can’t claim the value of your house as income. It’s a capital gain.

If you still own it. it’s a liability. Unless you found a way not to pay taxes, insurance or maintenance.

Man, I’m into a martini already, so take this with a grain. If I had 10 million $$ buried in my backyard, not throwing any income and depreciating with inflation, I’m still calling it an asset. Not the best use of that asset, but an asset nonetheless. ( I have not looked up the TECHNICAL definition of asset, so I could be wrong by definition ). I refuse to be that guy at the campfire that double checks everything on his damn phone as guys proclaim it. One of the worst things to ever happen to deer camp or fishing camp conversation.

 

[Altitude sickness]

I listed my residence in the asset column when building my trust. So we agree.
But, “when crafting your income statement for retirement, your primary home should reside under the expenses column. You have a fixed income and your residence isn’t producing retirement income. It’s taking some of your retirement income. Taxes, insurance and maintenance. Which isn’t bad. You need shelter.

And I just looked it up. So apparently I am that guy
It appears financial experts are spilt on asset vs liability

Your House Is Not an Asset; It’s an Expense (Content for Financial Advisors) | Blueleaf

Your primary residence is an expense, not an asset. It's not as liquid as you think and many people hold onto their homes later or sell earlier than their plan dictates so they can try to time the real estate market. Investment properties or REITs are a better way to have real estate exposure in...

www.blueleaf.com

 

[Doug3006]

We agree with each other. I don’t argue with General Officers. A paid off thing can be in the asset column.

But just because you own a thing without payments. Does not make it an asset.


It’s potentially a place holder of value but if it’s not generating income it’s technically not an asset.

It’s Semantics and definitions only since we need shelter and a place to live.

Of course It’s best for the house to gain value over 15-30 years. Or if you never had to pay interest, insurance, taxes and maintenance out of your wallet.

Not to be argumentative….says the guy participating in a political debate…but I’m pretty sure the definition of an asset does not include a requirement that it generate income. A bar of gold generates no income until the day you sell it. I wish I had a stack of them too high to see over!

 

[Doug3006]

And unlike most assets, the first $500k of gain from the sale of a primary residence is free from capital gains tax for married couple filing jointly.

 

[Brent in Az]

102° on the last day of winter. Phoenix and other locations even hotter.
Welcome to the desert, where we bypass spring and go straight to Summer.

 

[Brent in Az]

He always tells it like it is....

 

[Tubby’s Canteen]

Can you place property into trust to circumvent taxes in the u.s. ? You can in Canada although if you do you can’t use the asset in the future as collateral as your not the owner you are the trustee.

 

[wesheltonj]

Can you place property into trust to circumvent taxes in the u.s. ? You can in Canada although if you do you can’t use the asset in the future as collateral as your not the owner you are the trustee.

Irrevocable trust, trust pays the tax. Revocable trust the individual pays the tax. Trust tax is 37%. If you have about 8 to 10 million investable assets, the preferred route would be a Lichtenstein Foundation.

 

[Boyd Brooks]

102° on the last day of winter. Phoenix and other locations even hotter.
Welcome to the desert, where we bypass spring and go straight to Summer.

It’s Awesome!

 

[Brent in Az]

It’s Awesome!View attachment 753816

No it's not.....lol.

 

[Flipper Dude]

Well, the 67-69 part is nice. When we get to 100 plus in Houston, the bottom number might be 87-89

 

[mdwest]

If CNN’s data analyst is correct, the mid terms might not look nearly as bleak as some on the right might think…

CNN data guru reveals Trump’s base is expanding with 100% approval from MAGA Republicans

CNN chief data analyst Harry Enten dismissed the narrative of a MAGA split Wednesday with polls showing President Trump is enjoying 100% support from his Republican base.

nypost.com