Capitial Gains

[Jogeephus]

Was talking to an ex-IRS attorney and he was saying that he expected capital gains to increase to 25 - 30% next year. I don't know if he has any inside information on this or not but I have a few decisions to make that would greatly be affected by a change in this rate. Anyone have any thoughts on what's to come or do you think it will stay put?

 

[Douglas]

I would be surprised if it went up. The dems want to bash wall street (especially venture capitalist like Romney used to be) and are likely to propose an increase. Since the pubs will likely block them, they know it won't pass and they will have a political issue for the election. The only way it passes in my opinion as part of a broader tax reform plan, but no way in haties that will happen before the election.

 

[melking]

I am not too sure that the capital gains tax will not be the place that both parties decide to use to "fix" current problems

 

[Caustic Burno]

Wall Street is the only palce you can get a return on your money today, dang can't get a decent interest rate at the bank.
I am PO'd already have to send them blood suckers more this year. Between capital gain's selling cow's and equipment off they are real happy.

 

[dun]

Seems like I heard on the news a while back that they want to eliminate one of the earlier tax cuts on capital gains.

 

[john250]

So, you are a 1%er. Where is my cell phone?
Good old Warren Buffet. He has got a lot of tv time with that"I pay a lower tax than my secretary" stuff. Warren pays mostly capital gains rates--so to tax him "fairly" we must tax capital gains. Raising capital gains taxes sounds like a good idea when the focus stays on getting money from billionaires like Warren. Tax him at a special 101% "Buffet Rate". Everyone else goes to 0%.

 

[Caustic Burno]

So, you are a 1%er. Where is my cell phone?
Good old Warren Buffet. He has got a lot of tv time with that"I pay a lower tax than my secretary" stuff. Warren pays mostly capital gains rates--so to tax him "fairly" we must tax capital gains. Raising capital gains taxes sounds like a good idea when the focus stays on getting money from billionaires like Warren. Tax him at a special 101% "Buffet Rate". Everyone else goes to 0%.

No joke put your money at the bank and your lucky to get 2% tieing it up for 5 year's.
A ten year treasury bond is paying 1.9 % and a thirty 3.1%. The irony part is you buy a government bond to help the government and they tax the interest. Got in some muni's tax free a few years back with good yield's wished I had bought more. Muni's are are pitiful today. You are almost better off burying it in the backyard in a coffee can.

 

[Stocker Steve]

he was saying that he expected capital gains to increase. Anyone have any thoughts on what's to come or do you think it will stay put?

Unless congress does something :lol: the capital gains rates will go up next year. This is a fact.
Political types say it will depend on the election results. This is an opinion.
I hate it when something depends on an election so I have been selling cows and buying land.

 

[john250]

Steve, I'm always in favor of buying land. They're not making any more of it. But short term, you are selling cows? Why?

 

[Workinonit Farm]

No joke put your money at the bank and your lucky to get 2% tieing it up for 5 year's.
A ten year treasury bond is paying 1.9 % and a thirty 3.1%. The irony part is you buy a government bond to help the government and they tax the interest. Got in some muni's tax free a few years back with good yield's wished I had bought more. Muni's are are pitiful today. You are almost better off burying it in the backyard in a coffee can.

You're dang lucky if you can get a rate @ 2% for a 5 yr committment! Bonds used to be a "safe" bet.

At this point I believe real-estate is a better investment at this time.....if you can "afford" to hang on to it for the return. Unless you're buying in the worst location, real-estate is not a bad way to go. Depending on where you are (geographically) it is a buyers market.

And yes, I've got a 'feeling' that cap gains % will go up. Inheritance tax is just terrible.

Katherine

 

[Caustic Burno]

No joke put your money at the bank and your lucky to get 2% tieing it up for 5 year's.
A ten year treasury bond is paying 1.9 % and a thirty 3.1%. The irony part is you buy a government bond to help the government and they tax the interest. Got in some muni's tax free a few years back with good yield's wished I had bought more. Muni's are are pitiful today. You are almost better off burying it in the backyard in a coffee can.

You're dang lucky if you can get a rate @ 2% for a 5 yr committment! Bonds used to be a "safe" bet.

At this point I believe real-estate is a better investment at this time.....if you can "afford" to hang on to it for the return. Unless you're buying in the worst location, real-estate is not a bad way to go. Depending on where you are (geographically) it is a buyers market.

And yes, I've got a 'feeling' that cap gains % will go up. Inheritance tax is just terrible.

Katherine

The irony I made the most money on Mc Donalds bought at 72 sold at 100.
Hartford didn't do to well.

 

[JSCATTLE]

Capital gains rate is 15% now . The demotards want it taxed as regular income . They think people paying the lower rate is like stealing from the common folk . I just sold a speck house today . Made about 25 k for 5 months of work and 150 k of my money tied up . It's the last house I'll build and sell . These freakin vultures we call our government will end up with more of the money than I will .and didnt have to lift a finger . Or invest their money . It's sickening . The money I used has already been taxed once . I could have lost my investment or had to sell the house for what I had in it to get rid of it . So I for one think the tax rate should stay the same . I plan to make just enough to live comfortablely and do as much trading as possible . If you don't deposit the money they have a hard time saying you made it .

 

[Caustic Burno]

Capital gains rate is 15% now . The demotards want it taxed as regular income . They think people paying the lower rate is like stealing from the common folk . I just sold a speck house today . Made about 25 k for 5 months of work and 150 k of my money tied up . It's the last house I'll build and sell . These freakin vultures we call our government will end up with more of the money than I will .and didnt have to lift a finger . Or invest their money . It's sickening . The money I used has already been taxed once . I could have lost my investment or had to sell the house for what I had in it to get rid of it . So I for one think the tax rate should stay the same . I plan to make just enough to live comfortablely and do as much trading as possible . If you don't deposit the money they have a hard time saying you made it .

I feel your pain the taxed the he!! out of the Mickey D's stock sale , I bought the Hartford at 28 and it is 20 so I can't sell till it comes back up. But then the AMT formula enter's in and they break it off in you, the Alternative Minimum Tax Here's how it works. For every $1,000 of added long-term capital gain, your regular income tax goes up by $150 (15%). When we move over to the AMT, the same $1,000 is taxed at 15%, but in addition eliminates $250 of your exemption amount, because the exemption is phased out at a rate of 25%. The exemption amount is used to reduce the amount of tax you pay on your ordinary income (the income that is taxed at either 26% or 28% under the AMT). So your tax under the AMT rules goes up by about $70, which is 28% of this added $250. You didn't really add another $250 of income, but your exemption amount went down by $250, and that exposed another $250 of your existing income to tax under the AMT

Got us going and coming.

 

[Stocker Steve]

Steve, I'm always in favor of buying land. They're not making any more of it. But short term, you are selling cows? Why?

Cows are high, and with 179 deductions sales and current capital gains rates - - sales can be tax free. :banana:
Yes, land is high, but interest is as low as 4.31%
So - - I am betting on the Asians being hungry and land being limited...

P.S. I have a lot of guns & ammo just in case.

 

[Commercialfarmer]

My accountant has warned me about that starting last year. He felt very certain it will be happening. He told me to make what I could this year.

 

[Stocker Steve]

I plan to make just enough to live comfortably and do as much trading as possible . If you don't deposit the money they have a hard time saying you made it .

MN is planning to require ID for and documented transfer of breeding stock. This will effect some traders.

 

[Stocker Steve]

Steve, I'm always in favor of buying land. They're not making any more of it. But short term, you are selling cows? Why?

Gross margin with the current market prices for common crops on the type of ground we have ranks this way:
1) Stockers (highest)
2) Corn
3) Small grains
4) Cow/Calf
5) Hay (lowest)

So I see cows as a way to process stalks and straw and meadow hay - - but most folks only have cattle/hay or only have crops.

 

[Caustic Burno]

Land price's here have gone plum nuts for an acre for crap. Houston has done that because a few prime tract's have sold so now everyone want's to get on the cash train.

 

[john250]

Steve, I'm always in favor of buying land. They're not making any more of it. But short term, you are selling cows? Why?

Gross margin with the current market prices for common crops on the type of ground we have ranks this way:
1) Stockers (highest)
2) Corn
3) Small grains
4) Cow/Calf
5) Hay (lowest)

So I see cows as a way to process stalks and straw and meadow hay - - but most folks only have cattle/hay or only have crops.

If you have ground that is suitable for corn, I'd sell the whole herd. Cattle have never spent much time on corn ground, except to glean stalks.

 

[Stocker Steve]

Steve, I'm always in favor of buying land. They're not making any more of it. But short term, you are selling cows? Why?

Gross margin with the current market prices for common crops on the type of ground we have ranks this way:
1) Stockers (highest)
2) Corn
3) Small grains
4) Cow/Calf
5) Hay (lowest)

So I see cows as a way to process stalks and straw and meadow hay - - but most folks only have cattle/hay or have only have crops.

If you have ground that is suitable for corn, I'd sell the whole herd. Cattle have never spent much time on corn ground, except to glean stalks.

I see a lot of corn ground that is more suitable for cattle.

Purdue did some studies a couple years ago which showed the same thing I found - - intensively managed cattle returned more per acre back in the $3 and $4 corn days. The question is do you want to work cattle that hard, or just sign up for revenue insurance? Good insurance helps, but a basic issue is how do you sustain corn on corn with marginal ground and low county average yields?

Stalk gleaning season is short in arctic areas - - but 3 to 6 weeks is reasonable in an average year here.

I plan to run some numbers on grass finishing (other peoples cattle). This may be a good seasonal enterprise.