With the rise in residential property values here in California over the last twenty years, its use is as common as dirt. Sorry, if that's not the case in your area.
Any trips to Florida in the future. The people could sure use a generous supply of paper towels from you great Oz. Of course when you get around to it, after you slow your campaign.
Not only that but the story is mostly about the depreciation of business property and capital gains taxes related to business owned property, not personal income taxes.
The point is you and all non-corporate taxpayers can't deduct depreciation on your property like commercial real estate companies can. Kushner isn't claiming a $0 capital gain. He's reporting a net operating LOSS due largely to deducting depreciation.Once again you just don't understand the point.
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Kushner Companies, like many real estate firms, passes on any tax obligations to its owners, including Mr. Kushner and his father, who incorporate them into their personal tax returns.
Unlike typical wage earners, the owners of such companies can report losses for tax purposes. When a firm like Kushner Companies reports expenses in excess of its income, the result is a “net operating loss.” That loss can wipe out any taxes that the company’s owner otherwise would owe. Depending on the size of the loss, it can even be used to get refunds for taxes paid in prior years or eliminate tax bills in future years.
Mr. Kushner’s losses, stemming in large part from the depreciation deduction, appeared to wipe out his taxable income in most years covered by the documents.
He is reporting the losses even though he bought his properties with borrowed funds. In many cases, Mr. Kushner kicked in less than 1 percent of the purchase price, according to the documents. Even that small amount generally was paid for with loans. Mr. Kushner’s credit lines from banks rose to $46 million in 2016 from zero in 2009, the documents show.
The result: Mr. Kushner is getting tax-reducing losses for spending someone else’s money, which is permitted under the tax code. Depreciation deductions are available in other industries, but they generally don’t get to take losses related to spending with borrowed money.
Oh, you mean the ones who own businesses that employ thousands of workers -
as well as all the major purchases they make which means income for others.
I thought the point was that Kushner didn't pay any personal income taxes.
As can any owner of a corporation that is a pass-through
entity, like S-Corps and LLC's.
Typical wage earners who are stock holders in an S-Corp or an LLC can report that companies losses on their personal tax returns. They don't need to be real estate tycoons.
No. They are not "Mr. Kushner's losses." They are the real estate company's losses. The losses don't wipe out his taxable income, however they could reduce his tax liability, possibly even to zero.
Da-Dah-DUH!!!
Gosh, one would get the idea that the tax code was written in such a way so as to encourage entrepreneurship, risk taking, and creating businesses, thereby creating more jobs!