IRS to close loophole: depreciating the same asset repeatedly
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The IRS says some pass-through entities have been depreciating the same assets repeatedly by "selling" them from one pass-through entity to another that are all owned by the same tax payers, and that new rules will be proposed to crack down on this. This crackdown on "basis shifting" is expected to recoup $50 Billions of tax revenue in ten years.
An existing rule requires that transactions have “economic substance” rather than merely reducing tax bills. A top IRS official mentioned the economic substance rule as the root of the agency’s belief that most of these closely related partnership transactions are illegal.
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50 whole billion dollars over 10 years? Wow! Social Security is saved! That 80 billion dollars Biden spent to increase the IRS size is money well spent!
These people using the pass through loophole are all in the 1%, right? I mean, Biden promised that’s what they were going to do. I’m sure it’s not going to affect those Rideshare drivers that have wisely incorporated, then reincorporated, and have used that loophole… And don’t forget that the original entity that sold the asset to the new entity STILL had to report the income and pay the income tax from the sale…
Seriously? I have no problem with them closing this loophole, but don’t blow smoke up my ass and tell me it’s a bidet.
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50 whole billion dollars over 10 years? Wow! Social Security is saved! That 80 billion dollars Biden spent to increase the IRS size is money well spent!
These people using the pass through loophole are all in the 1%, right? I mean, Biden promised that’s what they were going to do. I’m sure it’s not going to affect those Rideshare drivers that have wisely incorporated, then reincorporated, and have used that loophole… And don’t forget that the original entity that sold the asset to the new entity STILL had to report the income and pay the income tax from the sale…
Seriously? I have no problem with them closing this loophole, but don’t blow smoke up my ass and tell me it’s a bidet.
@LuFins-Dad said in IRS to close loophole: depreciating the same asset repeatedly:
don’t blow smoke up my ass and tell me it’s a bidet.
Well, that's certainly the POTD.
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@LuFins-Dad said in IRS to close loophole: depreciating the same asset repeatedly:
I’m sure it’s not going to affect those Rideshare drivers that have wisely incorporated, then reincorporated, and have used that loophole… And don’t forget that the original entity that sold the asset to the new entity STILL had to report the income and pay the income tax from the sale…<
I was wondering that on reading the article....How much could one have really saved doing this??
There's probably a bunch of crap I could/should be doing in my own little business that would have had some benefits..I dunno. Seems so stupid. Why isn't it as simple as "Revenue was 'X' actual expenses were 'Y', that's the profit, let's pay some shitty taxes and move on with life.
