MARTINSBURG, West Virginia
United States
Contractor
Lyons New York
If I fail, let it be becasue of me and not you.
Ageing American's
Ageing American’s
If the government really wants to help with the ageing American’s problems than they should consider the following: Decrease the capital gains taxes that older American’s pay when they sell real assets. Many older American’s have worked their entire life, either for themselves or for some companies that never offered them retirement packages such as 401’s, etc. However, many older American’s did invest in real estate for their retirement years. I am not talking about their personal homes, which already has tax exemptions. I am referring to property purchase over the years as rental income property and this real estate help to add a little extra income through the years to their earned pay or income.
Now it is time for these folks to retire and they do have assets, but these net assets are in the, from of real estate properties. The, retired couple now make a decision to fully retire to some place that is maybe warm or near family members and figure on selling these assets to make this happen. Now, reality sets in. Yes, their personal home is going to be exempt from capital gains, as long as it falls within the allowable range. However, this couples’ real retirement assets are in the rental properties they have held for all these years thinking this is were their real retirement is. This couple looks at just what they will net after selling these assets and the awakening begins. The real world hits them right between the eyes. GAPITAL GAINS TAXES! They are going to pay the government, after the basis, 15% of what they have worked all their lives to save.
Example: Let’s say a couple as been able to amass $2,000,000.00 (Retail Market Value.) in real estate over the years. After paying all the expense associated with selling this property the couple will walk away from the closing table with $1,600,000.00. Before they can get out the door the government will take 15% or $240,000.00 of that money. Just think what that $240,000.00 means to the retired couple. Maybe they can pay for a health care issue without calling on the government, pay for drugs or any number of other things that they do not have to figure on the government to help them with. Anyone who has over the years been able to be smart about how they used and took care of their money, can do much more good with the $240,000.00 than the government can. Just look at how KBR Halliburton as wasted billions of dollars in Iraq and no one is doing anything about it.
I suggest that a bill be passed that says: If you are 65 years old or older and are drawing social security and you do not make more than $100,000.00 per year and your real assets, other than your personal home, do not exceed $2,000,000.00, you are free of all capital gain taxes. Hit the bench marks as outlined here and you can increase your home made retirement by $240,000.00.
Alan Wager
swanpond2@verizon.net
Your neighbor would have had to pay taxes on the interest income for each of those 35 years. Conservatively, your neighbor would have paid more than $450,000 in taxes on the interest income over the years.
It may seem unfair that you have to pay so much of your sale proceeds in taxes when you sell your investment property, but remember that your investment was allowed to grow tax free until you sold it.
To lower your capital gains tax further than they have already been lowered would give you an unfair advantage over other taxpayers who must pay taxes on their investment growth on an annual basis.
No one likes taxes, but we know the two sure things in life, and taxes are one of them. Congratulations on making some good decisions and wise investments. I hope you can forget about the tax man's slice of it and have a great retirement
