Depends on the area but around here about $9-10,000. Over in NW Iowa about $13,000. I am seeing that the new figures for Iowa are about $101 dollars per CSR point.
Now, if you were going to sell that land today, you would have to pay Capital Gains tax on $7408 .
Yet your purchasing power hasn't increased so what you pay on is PHANTOM gains.
This is not fair
It most certainly is. If an employee has his wages increased over the same period of time, we do not exempt the wage increases even though they will not buy much more than his earnings of 20 years ago.
I cannot for the life of me understand while those that are fortunate to enjoy successful investments think they should be exempt from taxation. I'll bet if they suffer losses on their investment they are the first to expect to deduct those losses against ordinary income. Thus they want taxpayers to subsidize their investment losses and they want to keep the gains tax free. Do you think your capital gains earnings are any more precious to you than a worker' pay increase? He gets taxed and you don't think yours should be taxed. Plus he gets hit with fica taxes as well which equal as much as your capital gains rate by itself.
Thanks old man, that is exactly what I was looking for. Using this unscientific logic, if history repeats itself, land could spike up to $12,000-14,000 pretty easy.
Kraft-t...I have no problem with paying a reasonable capital gains tax. What I mean is a tax which doesn't remove the incentive to invest for the future. It can't be equal to an income/FICA tax...because the dollars contributed to pay for the investment were most likely already taxed once. Without incentive to invest...the lack of available jobs would put that worker that has never invested into a business out of a job....kind of like where the unions have put us now.
The really unfair tax is the death tax. I can't find any reason to pay death taxes..when those who haven't been motivated to save, invest or have collected welfare/SS benefits their entire lives don't contribute anything. It's a tax that really needs to go...and the sooner the better.
Capital gains taxes are what I am talking about. I paid for a couple of farms out of taxed income. Although Uncle Sam did allow me to deduct the mortgage interest while I was doing it. The gains on those to properties alone were substantial, in the hundreds of thousands. There has been no capital gains taxes paid on those farms and probably never will be. Plus we will fall in the asset class of non inheritance tax payers. If I were to sell those two parcels the capital gains would be taxed at 15% capital gains rate.
An worker that had his wage increase $20k over a number of years would pay 15% in fica taxes alone, plus the income tax or the ordinary income. So his $20K should be taxed each and every year but my substantial capital gains should not be. Explain the logic behind that?
I don't know about you but I don't invest because the tax rates are low. I invest because I want to make money and that is the only motivation for me. I am building asset for my old age and for my family. I cannot understand why my good fortune should go untaxed. I agree with capital gains taxes but I think they should be on the same level as ordinary income. WE should appreciate people that show up for work and do the tasks instead of giving preferrential treatment to those that invest and won. His gain is just as precious to him as your gain is to you. Yet the investor class wants the working class to pay higher tax rates.
Let's see. The businesses don't want to pay taxes. The stockholders don't want to pay taxes and the wealthy does not want to pay estate taxes. What do they think is the ideal tax formula. Consumption taxes> Why? Because the wealthy spend only a small percentage of their income on cunsu7med items. The working stiff needs to consume most of his earnings. And yet, many of that so called fortunate class think that the working class is over paid and should be cut down to size..