Chicken. Posted January 20, 2020 Share Posted January 20, 2020 Just now, Kragar said: Maybe the larger customer base takes some of the risk away for US banks?? Good point, regardless. I was surprised it worked that way down here. As far as paying mortgage ASAP, I'm guessing it is your only debt. IIRC, all other consumer debt should be paid first. Lol yeah it's my only debt, I am generally pretty risk adverse so it feels like a big cloud hanging over my head even though its "only" like $250K By the time I turn 40 is a goal I put for myself but still need to balance it with enjoying oneself once in a while. A nice first world problem to have in the big picture. 1 Link to comment Share on other sites More sharing options...
Kragar Posted January 20, 2020 Share Posted January 20, 2020 4 minutes ago, Chicken. said: Lol yeah it's my only debt, I am generally pretty risk adverse so it feels like a big cloud hanging over my head even though its "only" like $250K By the time I turn 40 is a goal I put for myself but still need to balance it with enjoying oneself once in a while. A nice first world problem to have in the big picture. Good for you!! The mortgage doesn't bother me so much, aside from it eating into the equity I intend to use for early retirement. We'll be moving out of state when it is time to retire, so that move will make us debt-free at that time. Sure looking forward to that day! Link to comment Share on other sites More sharing options...
Warhippy Posted January 20, 2020 Author Share Posted January 20, 2020 Tp address the next generation being part of the issue regarding the economy. In a consumer based economy, having an entire up and coming generation without the means to consume there is a HUGE issue that is not being addressed. I think it needs some examination and more talking about. https://www.businessinsider.com/auto-loan-delinquency-record-from-ny-fed-recession-worry-overblown-2019-2 https://www.cnbc.com/2019/10/06/millennials-are-to-blame-for-sluggish-economy-raymond-james-report.html https://www.theatlantic.com/ideas/archive/2018/12/stop-blaming-millennials-killing-economy/577408/ https://www.forbes.com/sites/gregpetro/2018/08/19/more-debt-less-stuff-the-millennial-spending-dilemma/#7b64c5c4314d https://www.npr.org/2018/11/30/672103209/why-arent-millennials-spending-more-they-re-poorer-than-their-parents-fed-says From an economic standpoint this should be cause for severe and extreme worry. More debt means less consumer spending. less home purchasing less home starts and lower construction leading to less tax revenue and less start ups. Less municipally and less state/province wide. It will lead to lower new business starts and more. I really think that this is an under-spoken issue 1 Link to comment Share on other sites More sharing options...
Kragar Posted January 20, 2020 Share Posted January 20, 2020 1 hour ago, Warhippy said: Here's one https://www.cnbc.com/2019/10/06/millennials-are-to-blame-for-sluggish-economy-raymond-james-report.html Just sub search "millennials not spending causing economy" It's really interesting Thanks. Unsurprisingly, there are more articles about Americans on the topic. Debt with Canadian millennials seems to be a bigger deal. Maybe they are spending less, too, but they are still going into debt, and not just for student loans. https://www.creditkarma.ca/credit/i/more-than-third-of-millennials-expect-holiday-debt/ https://www.narcity.com/news/ca/canadian-millennials-in-debt-say-overspending-is-to-blame-study-finds https://www.bnnbloomberg.ca/canadian-millennials-gen-z-piled-on-consumer-debt-at-fastest-rate-in-2017-report-1.1013994 So, they might be spending slower (and the economic impact of that is real), but they are still often spending beyond their means. I did read somethings about Cdn millennials not saving as much, and more so not investing properly as generally they don't understand/trust investing beyond their bank accounts. If people aren't investing in something that grows significantly, they'll be screwed. Not sure if it was in this thread or not, but IIRC there was some recent talk on CDC regarding the way credit card companies and other lenders prey on the younguns. just so sad. Link to comment Share on other sites More sharing options...
kingofsurrey Posted January 20, 2020 Share Posted January 20, 2020 1 hour ago, Chicken. said: The more I learn the more I feel screwed up here.. I feel like I already knew this but just forgot: One big advantage homeowners have in the U.S. is that mortgage interest is tax deductible. Yes, but americans pay capital gain on the sale of home .... no ? Link to comment Share on other sites More sharing options...
Warhippy Posted January 20, 2020 Author Share Posted January 20, 2020 4 minutes ago, Kragar said: Thanks. Unsurprisingly, there are more articles about Americans on the topic. Debt with Canadian millennials seems to be a bigger deal. Maybe they are spending less, too, but they are still going into debt, and not just for student loans. https://www.creditkarma.ca/credit/i/more-than-third-of-millennials-expect-holiday-debt/ https://www.narcity.com/news/ca/canadian-millennials-in-debt-say-overspending-is-to-blame-study-finds https://www.bnnbloomberg.ca/canadian-millennials-gen-z-piled-on-consumer-debt-at-fastest-rate-in-2017-report-1.1013994 So, they might be spending slower (and the economic impact of that is real), but they are still often spending beyond their means. I did read somethings about Cdn millennials not saving as much, and more so not investing properly as generally they don't understand/trust investing beyond their bank accounts. If people aren't investing in something that grows significantly, they'll be screwed. Not sure if it was in this thread or not, but IIRC there was some recent talk on CDC regarding the way credit card companies and other lenders prey on the younguns. just so sad. Frosh week, first week of uni and you have banks and credit companies lined up to sign kids up to cards with little oversight. It's scary 1 Link to comment Share on other sites More sharing options...
kingofsurrey Posted January 20, 2020 Share Posted January 20, 2020 Just now, Warhippy said: Frosh week, first week of uni and you have banks and credit companies lined up to sign kids up to cards with little oversight. It's scary I was way too drunk on beer that week to fill out any paper work...... but that was pre internet....... maybe easier to apply nowdays.... Link to comment Share on other sites More sharing options...
kingofsurrey Posted January 20, 2020 Share Posted January 20, 2020 World is not a fair place... World's richest 2,000 people hold more than poorest 4.6 billion combined, says Oxfam report https://vancouversun.com/news/economy/worlds-richest-2000-people-hold-more-than-poorest-4-6-bln-combined-oxfam/wcm/12eb2650-e549-47a3-945d-5dc3404a0481 Link to comment Share on other sites More sharing options...
Chicken. Posted January 20, 2020 Share Posted January 20, 2020 4 minutes ago, kingofsurrey said: Yes, but americans pay capital gain on the sale of home .... no ? When you sell your home, the capital gains on the sale are exempt from capital gains tax. Based on the Taxpayer Relief Act of 1997, if you are single, you will pay no capital gains tax on the first $250,000 you make when you sell your home. Married couples enjoy a $500,000 exemption. There are, however, some restrictions on this exemption. https://www.investopedia.com/ask/answers/06/capitalgainhomesale.asp Looks like there is a primary residence exemption down there also, with limits Link to comment Share on other sites More sharing options...
kingofsurrey Posted January 20, 2020 Share Posted January 20, 2020 5 minutes ago, Chicken. said: homesale.asp Looks like there is a primary residence exemption down there also, with limits do not think this is true.... Does California tax gain on sale of home? The federal government taxes home-sales profit over the $250,000/$500,000 limit at rates up to 23.8 percent. California taxes capital gains the same as ordinary income, at rates up to 13.3 percent. google. Link to comment Share on other sites More sharing options...
Chicken. Posted January 20, 2020 Share Posted January 20, 2020 6 minutes ago, kingofsurrey said: do not think this is true.... Does California tax gain on sale of home? The federal government taxes home-sales profit over the $250,000/$500,000 limit at rates up to 23.8 percent. California taxes capital gains the same as ordinary income, at rates up to 13.3 percent. google. Well I am not claiming to be an expert, but I'm sure Kragar will know being as he resides in California and seemingly has his principal residence there. https://ttlc.intuit.com/community/tax-credits-deductions/discussion/california-tax-on-property-sell/00/32233 So from what I read is that the gain made on the sale of the personal residence that falls under the exemption rules of the Federal Tax Code will not make it across to the California Tax Form thus the gain will not be taxed. However, any gain that is not exempt by the Federal exemption (therefore getting taxed Federally) will also make it to the California Tax Form and thus be taxed as a Capital Gain (i.e. income tax) in the state of California. Am I understanding this correctly? Link to comment Share on other sites More sharing options...
kingofsurrey Posted January 20, 2020 Share Posted January 20, 2020 (edited) 5 minutes ago, Chicken. said: Well I am not claiming to be an expert, but I'm sure Kragar will know being as he resides in California and seemingly has his principal residence there. https://ttlc.intuit.com/community/tax-credits-deductions/discussion/california-tax-on-property-sell/00/32233 So from what I read is that the gain made on the sale of the personal residence that falls under the exemption rules of the Federal Tax Code will not make it across to the California Tax Form thus the gain will not be taxed. However, any gain that is not exempt by the Federal exemption (therefore getting taxed Federally) will also make it to the California Tax Form and thus be taxed as a Capital Gain (i.e. income tax) in the state of California. Am I understanding this correctly? I know real estate is heavily taxed on the sale.... I have a friend just out of San Fran that tells me they are screwed if they sell... they will pay HUGE taxes . Not sure how other states handle it though.... Sounds like in Cali you may get 500,00 exemption... I guess my friends place down there may be worth a few mill.... wow..... Edited January 20, 2020 by kingofsurrey Link to comment Share on other sites More sharing options...
Chicken. Posted January 20, 2020 Share Posted January 20, 2020 (edited) 5 minutes ago, kingofsurrey said: I know real estate is heavily taxed on the sale.... I have a friend just out of San Fran that tells me they are screwed if they sell... they will pay HUGE taxes . Not sure how other states handle it though.... Screwed for paying HUGE tax on what must be a large gain from a real estate sale.. nice problem to have eh' Sounds like your friend needs an accountant Edited January 20, 2020 by Chicken. Link to comment Share on other sites More sharing options...
kingofsurrey Posted January 20, 2020 Share Posted January 20, 2020 2 minutes ago, Chicken. said: Screwed for paying HUGE tax on what must be a large gain from a real estate sale.. nice problem to have eh' Sounds like your friend needs an accountant Yah, they live in Marin county... and have a place in Tahoe.....waterfront on the lake.. I don't think they are hurting.... I actually met them in Palm Springs...... LOL Link to comment Share on other sites More sharing options...
aGENT Posted January 20, 2020 Share Posted January 20, 2020 (edited) 1 hour ago, Warhippy said: Tp address the next generation being part of the issue regarding the economy. In a consumer based economy, having an entire up and coming generation without the means to consume there is a HUGE issue that is not being addressed. I think it needs some examination and more talking about. https://www.businessinsider.com/auto-loan-delinquency-record-from-ny-fed-recession-worry-overblown-2019-2 https://www.cnbc.com/2019/10/06/millennials-are-to-blame-for-sluggish-economy-raymond-james-report.html https://www.theatlantic.com/ideas/archive/2018/12/stop-blaming-millennials-killing-economy/577408/ https://www.forbes.com/sites/gregpetro/2018/08/19/more-debt-less-stuff-the-millennial-spending-dilemma/#7b64c5c4314d https://www.npr.org/2018/11/30/672103209/why-arent-millennials-spending-more-they-re-poorer-than-their-parents-fed-says From an economic standpoint this should be cause for severe and extreme worry. More debt means less consumer spending. less home purchasing less home starts and lower construction leading to less tax revenue and less start ups. Less municipally and less state/province wide. It will lead to lower new business starts and more. I really think that this is an under-spoken issue As I posted earlier, the race to the bottom seems to only be getting worse. And as automation continues, it's only going to get worse and effect far more than just millenials ability to spend. In a consumer economy, you simply can't expect to keep reducing pay and at the same time expect the economy to keep rolling. Without numerous, well paying jobs (or some new monetary system), we're basically f'd. But at least Bezos and the like are worth $10B... Makes me wonder if I should just keep my +/- $350k from our house sale in the bank for now... Edited January 20, 2020 by aGENT Link to comment Share on other sites More sharing options...
inane Posted January 20, 2020 Share Posted January 20, 2020 48 minutes ago, Chicken. said: Screwed for paying HUGE tax on what must be a large gain from a real estate sale.. nice problem to have eh' Sounds like your friend needs an accountant Lol I agree with you! Complaining about all the tax you have to pay cause you make so much money doesn't get much sympathy from me. 1 Link to comment Share on other sites More sharing options...
Chicken. Posted January 20, 2020 Share Posted January 20, 2020 21 minutes ago, aGENT said: As I posted earlier, the race to the bottom seems to only be getting worse. And as automation continues, it's only going to get worse and effect far more than just millenials ability to spend. In a consumer economy, you simply can't expect to keep reducing pay and at the same time expect the economy to keep rolling. Without numerous, well paying jobs (or some new monetary system), we're basically f'd. But at least Bezos and the like are worth $10B... Makes me wonder if I should just keep my +/- $350k from our house sale in the bank for now... Or cash under your mattress.. protect your deposit ! https://www.cdic.ca/your-coverage/protecting-your-deposit/ Link to comment Share on other sites More sharing options...
bishopshodan Posted January 20, 2020 Share Posted January 20, 2020 8 minutes ago, inane said: Lol I agree with you! Complaining about all the tax you have to pay cause you make so much money doesn't get much sympathy from me. A theme I read in a few threads these days on CDC... Link to comment Share on other sites More sharing options...
Kragar Posted January 21, 2020 Share Posted January 21, 2020 2 hours ago, Chicken. said: When you sell your home, the capital gains on the sale are exempt from capital gains tax. Based on the Taxpayer Relief Act of 1997, if you are single, you will pay no capital gains tax on the first $250,000 you make when you sell your home. Married couples enjoy a $500,000 exemption. There are, however, some restrictions on this exemption. https://www.investopedia.com/ask/answers/06/capitalgainhomesale.asp Looks like there is a primary residence exemption down there also, with limits @kingofsurrey There are also other things that get taken into account. The above info is correct in most cases (applies to those living in the home, not rental properties, and how long you lived there, IIRC), but also, you can deduct upkeep costs (i.e. costs for paint, carpet cleaning and repairs before you sell, I believe). Depending on the extent of work done to the place (roofs aren't cheap), you can easily reduce the gain (on paper) another 50-100K, if you really need to spruce it up first. For the tax to hurt, you have to be selling a mighty pricey property with a lot of equity. With a median home value under 300K, most people aren't hurt by this at all when they sell. 1 Link to comment Share on other sites More sharing options...
Kragar Posted January 21, 2020 Share Posted January 21, 2020 1 hour ago, inane said: Lol I agree with you! Complaining about all the tax you have to pay cause you make so much money doesn't get much sympathy from me. Yep, I would love to have to pay tax when it's time to sell my home. Link to comment Share on other sites More sharing options...
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