Record IRS revenue—but Biden expands IRS scope/audits

And conservatives made the tax code incredibly more complex under Trump….

Why be a sucker for the elites?

 

Law and Order party pissing their diapers over following Existing Laws.

Blames illegals and wussy libs as the cause.

 

Where does the 87K number come from? I keep seeing it but no source.

I don't think they will go after middle class people - there's not much money there. This sounds like what the rich will say to scare people into being against the IRS auditing rich people more.

 

No, Real Estate prices are not high because of "leeches"... They are high because two years ago when the whole world decided to shut down due to Covid no one was selling.... No one knew when it would end and how long till they could get back to work. There was not enough product for the amount of buyers that started looking for homes due to low rates roughly about a year and a half ago. MLS was showing sometimes 15-25 max homes in the 200-400's for entire zip codes...

Now we have 20-30 sometimes more people looking at the same home... And what happens when 30 people want the same product, they start bidding on it. I've put offers in as high as 15-20k for my clients and we still missed out on some homes. I've heard even worse for other people. Homes skyrocketed even more when people from out of state started moving to Texas.... I had someone from Washington offer me 20K above listing price for a listing just a month ago.

Things are starting to move again somewhat and homes are now sitting in the market longer, higher interest rates means less buyers and it looks like prices are stagnating but homes won't lose value. This boom means the market is now likely going to stay this way and or go higher in the future. I rehab homes and sell them, I still had to pay way too much for it but I do alot of the work myself so leeching is not true for me at least.

I don't like Biden, when he does something I think is worthy of praise I will do it. I voted Trump and will without a doubt admit when I feel he is wrong. I think Trump could have done more and fast on January the 6th. I don't know what the hell he though would happen but I disagree with his actions. Ask @DaDakota to say something negative about his daddy Biden... He thinks everything Biden does is perfect, when its clearly not.

 

These people don't seem to understand the 87,000 employees are over a 10 year period and half of the current agents are going to retire over the next 10 years. It is a net gain of about 15,000 employees from current levels. Which brings the IRS back to their normal staffing levels.

 

I don't like how Biden has not forgiven much of student debt, or gone to a zero percent loan situation.

I don't like that Biden doesn't go directly to the people to make his points, because that is what makes people think you are doing something even if like Trump you weren't doing all that much the appearance of tweets etc, made it seem like he was...

I am not a BIDEN fan, I am a fan of Democracy, I am a fiscal conservative, and a social moderate/liberal.

DD

 

One of the main problems with the Florida housing market is that companies (or people that invest in houses) were buying houses and then selling or renting them out at high price levels.

We have a rent house we could easily get $2500-$3000 a month on rent. We have charged the same $1500 since we bought it in 2019 even though insurance and taxes have increased.

Most other landlords, based on what I have seen and read and talked about with realtors and renters, have raised their rates to cover those increased costs (perfectly OK), but have jacked up the prices on top of that because they can.

 

The Fed in coordination with Mnuchin at the Treasury lowered rates and became the prime holder of MBS (plus junk corporate bonds that are still in the process of winding down). A lot of these lending institutions are going belly up right now because of the higher rates and a very persistent inverted yield curve. These mortgage institutions might originate the loans but they're not holding the mortgage, rather they packaged them by volume as Mortgage Backed Securities.

Fed policies in conjuction with the Trump Admin to contain the 2020 Panic started in late-Feb/early-March caused the rabid drive to buy homes at dirt cheap rates to the point where a realistic 4-5% mortgage policy now is considered "painful" because monthly fees are twice as much as it were a year ago. This affects new buyers, but moreso with speculators who have more purchasing power to buy and flip homes through more collateral.

You should know this tangentially, but seem to be focused on the near term affects from the industry.

The big banks won't go bust from this. They fire-walled these lending institutions from contagion and undercapitalized them so that downtimes or high rate periods like these will force them to go bust.

Meanwhile the Fed has all of these MBS that will likely continue their losing streak in the high hundreds of billions

So who holds the bag? Big banks have some exposure but not the extent of 08.


They learned their lesson, albeit in a greedy and scummy hands-off way. The Fed has not.

 

It comes from idiots in Congress that spewed it out. From idiots on Fox News that perpetuated it. And, idiots on social media who don't take a few minutes to research it, but spread it anyway.

 

The rental market is collapsing and that is a great thing, we had too many people putting money into rentals they could not afford.

DD

 

This is happening all over the country. There are private landlords but a lot of landlord equity companies buying up houses and rehabers. All of those drive up the cost of housing in the US.

There are other reasons, including some local housing ordinates and a slowing in house building between 2010-2020.

Still we appear headed towards how it is in Europe/NZ/Aus where the cost of homes is prohibitive.

 

I don’t see this at all. Prices in Chicago for the rental market remain very very high. We are seeing more “luxury” apartments being built but not enough to cut the housing cost.

The going rental rate in my area of town is $3,500-$4,500 a month with near perfect credit.

 

That's right by you, I don't like the idea of inflating prices just because..... I hate bidding wars, so far thankfully I have had offers strong enough early to sell my flip homes without giving people a deadline to bid away and squeezing every penny out of it. I'm okay with giving someone that really loves the home a chance to buy it without them having to wait a dreaded week only for them to get outbid. Same with a rental I had over the pandemic, except the tenant was terrible. I still let them stay there like 4 months without paying due to Covid and when I got the home back she left me with tons of problems and a $700.00 water bill. I decided not to rent it again and just lightly remodel the home and sell it....Had she been a good tenant she could have kept her $1,500.00 a month 4 bedroom home for as long she wanted.

I try and be as fair as possible, from the remodel in using proper materials all the way to the price. I don't want to take advantage of anyone, I just want to earn a living and for the people buying my homes to be satisficed and have long lasting homes that were done right.

 

Yeah…rentals here in St. Petersburg are still overpriced. The housing market is not as crazy as it was 6 months ago, Our house has still doubled+ in value, but I’m not as confident that we could sell for that amount today. 3+ months ago we would have had multiple first day offers at that price or higher,

 

Here in Austin, the people that bought houses when mortgages were low are struggling to get them rented, and are going bankrupt or having to sell their rentals.

Too many people got in and it screwed the marketplace....or got in as a biz venture......and now it is in a state of flux.

Short term rentals are doing ok, but usually if they are on some land on their own.

Our house at it's height was around 1.3-1.4m, we could probably only get 1.1+ now.

DD

 

Yeah man its tough, we just don't need added pressure or stress. Its not about not paying taxes, its about not getting screwed because Biden decided to go after middle class America...

 

Jesus it is not hard to enter receipts into your phone as you pay them it is what RESPONSBILE business owners do.

No one is going after you, or your middle classness - but we do need to stop the people cheating their way out of paying taxes.

And one of those ways is to force people like you and me, to register or do business with the W9 people and not feed into the illegal marketplace of mostly immigrants that are paid in cash and not reporting income.

DD

 

Good thing he didn't. Why do you keep repeating this when it simply isn't true? If you're making over $400k, good for you...but you will pay a little more in tax, especially if you're cheating the system. If you're not, collect receipts (it's not that hard) and make sure you're doing the things you're supposed to do. Why is that such a problem?

 

I made some money on crypto and I've also had my share of dealing with the IRS through an LLP and LLC. My general feeling from both is that you don't have to report everything and they agents will work with you to an extent, provided that what you're reporting is in good faith and by you or your preparer's best effort.

If you don't, then you're doing the Trump route and taking the risk that the IRS won't audit or fine you.

For "business minded" folk calculating that risk, this change might be stressful because it changes the equation somewhat and affects a bottom line that you spent great effort in extracting.

The IRS is slow and really a pain in the ass right now to correspond with. They take 2-3 hours to respond to a call, don't have email, and the payment options are still 20-35 years old.

Given the worst fears presented here, I don't think you will be a target this or even the next year. They're like a broken down shack right now and you're not that big a fish to fry or even to bully.

In these two years, if you are a mid-time jerb creator who skimps and cuts corners for efficiency or expediency, I would suggest it's time to stop procrastinating, consult with an accountant on your liabilities and gradually patch it up while limiting your past exposures. Nothing too dramatic to fall under the radar, but enough to not "feel stressed."

The system has been rife for small time abuses ranging from fraudulent to high risk PPP loan apps or CARES act misreporting. I don't think many of those folks will be caught or held accountable.

In the end, it's not worth it for them to go after every case when they still have whales who got lazy and became low hanging fruit with enough people to go over their papertrail.

 

Not apartments, this is about housing.

Houses...

DD