The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success

NEWS: AMT bill passes House 11/9/07

Russ H

Gold Contributor
Read Millionaire Fastlane
Speedway Pass
Jul 25, 2007
6,556
1,289
381
58
Napa Valley, CA
Here we go . . .

http://www.cnn.com/2007/POLITICS/11/09/congress.taxes.ap/index.html

"Some pro-business Democrats joined Republicans in expressing concern that the carried interest provision could hurt venture capital and real estate investors as well as hedge fund managers making hundreds of millions of dollars."

-Russ H.
 

Don't like ads? Remove them while supporting the forum. Subscribe.

Diane Kennedy

Bronze Contributor
Aug 31, 2007
795
209
49
Here we go . . .

http://www.cnn.com/2007/POLITICS/11/09/congress.taxes.ap/index.html

"Some pro-business Democrats joined Republicans in expressing concern that the carried interest provision could hurt venture capital and real estate investors as well as hedge fund managers making hundreds of millions of dollars."

-Russ H.
No way it'll make it to law. Bush has already said he'd veto it and it probably wont' pass the Senate anyway.

I think AMT is here to stay this year. LOOK OUT!

5 million Californians will pay AMT for the first time ever in 2007

Diane

P.S. The issue is the PAYGO provision. Bills are required to find a way to make up the lost tax and AMT puts a lot of money into the coffers.
 

andviv

Gold Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
Summit Attendee
Speedway Pass
Jul 27, 2007
5,419
2,186
625
Washington DC
I certainly think that U.S. News depicted it correctly...
 
Last edited:

Ausable

New Contributor
Nov 12, 2007
18
3
10
Des Moines
Just another example of the "Let's soak the rich" mentality of politicians. And who in the end gets hit with the tax.....the middle class and poor. Which is exactly what the AMT ended up doing, which is soaking the middle class instead of the rich.

I think one of the bigger problems is going to be the tax bills homeowners are going to get from doing a short sale on their speculative investment condo's/SFH/etc.. With the IRS hitting them with a tax on the difference between the base loan amount and the short sale amount. Yikes!
 

Diane Kennedy

Bronze Contributor
Aug 31, 2007
795
209
49
I think one of the bigger problems is going to be the tax bills homeowners are going to get from doing a short sale on their speculative investment condo's/SFH/etc.. With the IRS hitting them with a tax on the difference between the base loan amount and the short sale amount. Yikes!
Mortgage foregiveness bill has passed the house and will probably make it through the Senate and be signed. it will allow homeowners to NOT pay tax on the difference for the principal residences.

HOWEVER it's paid for by a reduction of the capital gains tax exclusion for homeowners.
 
OP
OP
Russ H

Russ H

Gold Contributor
Read Millionaire Fastlane
Speedway Pass
Jul 25, 2007
6,556
1,289
381
58
Napa Valley, CA
Diane Kennedy said:
HOWEVER it's paid for by a reduction of the capital gains tax exclusion for homeowners.
By adding extra years for exempt status, or something else?

Any other capital gains tax changes you see?

(inquiring minds want to know! ;) )

-Russ H.
 

Diane Kennedy

Bronze Contributor
Aug 31, 2007
795
209
49
By adding extra years for exempt status, or something else?

Any other capital gains tax changes you see?

(inquiring minds want to know! ;) )

-Russ H.
This isn't signed by the Pres yet, so it's not law. But it's likely that it will.

Current law is that you can live in your house 2 out of the previous 5 years to get the exclusion.

That goes away. Under the proposed change, if you lived in your house 2 out of the previous 5, you would only get a pro-rata gain reduction (in this case 40% - 2/5). So, if you made $100K on a property, you'd pay tax on $60,000.
 

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account on our community. It's easy!

Log in

Already have an account? Log in here.


New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Monthly conference calls with doers
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom