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Warhippy

[Discussion] Will the Next one be the Worst Recession in History?

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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.

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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!

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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

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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.

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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 ?

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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

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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....

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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

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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 

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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.

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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?  

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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 by kingofsurrey

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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 by Chicken.

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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 

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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...:ph34r:

Edited by aGENT

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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. 

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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...:ph34r:

Or cash under your mattress.. :lol:

 

protect your deposit ! https://www.cdic.ca/your-coverage/protecting-your-deposit/ 

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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...:ph34r:

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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.

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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.

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