NEWS: AMT bill passes House 11/9/07

[Russ H]

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.

 

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[Diane Kennedy]

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]

I certainly think that U.S. News depicted it correctly...

 

[Ausable]

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!

 

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[Diane Kennedy]

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.

 

[Diane Kennedy]

Love the cartoon Andviv.

 

[Russ H]

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.

 

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[Diane Kennedy]

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.