Do I get to deduct or credit what I have paid in property taxes, mortgage interest, insurance, utilities, maintenance, depreciation expense, and replacement costs against the gross capital gains to only pay capital gains tax on the net capital gain?
I paid payroll taxes on my gross adjusted earned income. I have to pay for recurring monthly house expenses (property taxes, mortgage interest, insurance, utilities, maintenance) using my net income, which has been taxed for Social Security, Medicare, Federal Income Tax, and State Income Tax.
I only take home 60% of my gross, from which 50% of the remainder (30% gross income) pays for household expenses. I don't get to write off depreciation expense like a business does.
If I sell the house, I pay capital gains tax on the gross capital gain, not the net. My captial gains tax, based upon the gross, is too high when it should be based upon the net capital gain.
So, it is my after-tax income that I use for capital.
Businesses are taxed, but they get to account for the expenses to only pay tax on the net; whereas an individual gets screwed because I cannot take advantage of GAAP used for business assets and capital.
Worse, I sell my house, I overpay the capital gains tax, and it is from the remainder that I obtain the capital I'll use to pay the replacement cost from monies that have been taxed as personal income and gross capital gains.
If households could use the same accounting gimmicks businesses use, taxable disposable personal household income would be significantly less.
Businesses get to deduct and carry-over the expenses of doing business, but individuals and families do not get to deduct the full cost of living from payroll taxation.
This is why celebrities, scumbags (Mitt Romney), and douchebags (John F'ing Kerry) funnel their income through S corps, LLC's, trusts, and other legal tax sheters - to reduce their tax exposure.
If American households could incorporate, they could decuct their living, education, childcare, healthcare, yadda yadda yadda expenses to reduce their tax liabilities, just as corporations and pass-through LLC's do.
Don't tell me that I am not being screwed over compared to the likes of Mitt Romney and John F'ing Kerry. John Kerry doesn't pay for his private jet flights with his own money ... he launders it through trusts and LLC's to deduct as a business expense or for a legal tax shelter entity to write off depreciation expense on the Gulfstream 5 owned by the Heinz Trust or LLC.
So, John F'ing Kerry tells the world he does not personally own private jets - his trusts and LLC's do.
Businesses pay income tax on post-expense net income whereas the deplorables pay personal taxes on pre-expense gross income.
The money that purchased that capital investment was already taxed. Buy a house and live in it for 20 years and then sell it. You are taxed capital gains on the difference you bought it for and sold it for in terms of dollars. You equate that with earnings from working? In that twenty years if your house doubled in price and the value of the dollar has halved your house (takes twice as many devalued dollars to purchase it) it hasn't actually gained in real value. But you'll still pay the difference anyway in taxes...
The whole system is corrupt.
