Hello everybody...
This case was in our local newspaper today and is a perfect example of just one of the many, many tax loopholes for the rich that are never taken into consideration when the discussion of taxes is discussed.
You've all heard me talk about tax shelters and other ways to get around paying in you're taxes that really deducts from what people of wealth are actually paying in compared to what their tax bracket says they pay.
Here's one example I think everyone will see as ridiculous. And remember every dollar not paid in is a dollar more someone else has to pay to make up for.
Kirk Herbstreit famous OSU quarterback turned ESPN commentator who lives right here in Upper Arlington an extremely wealthy Columbus suburb is in a battle with the IRS. Seems he and his wife bought a home in Upper Arlington. Had the fire department burn it down for training purposes so they could build a new home on the property and took a $330,000 tax deduction for it.
And actually this is something that has been allowed as a deduction in many cases. The only thing that really tripped this up was the $330,000 deduction is said to be the whole properties value including the land... they still have the land and a big new mansion on it as well.
Herbstreit (who I've personally met, we used to manage some of his properties and is a great guy by the way) when audited he went ahead and paid the $134,604 in unpaid back taxes and interest and if trying now to get an adjusted amount back presumably for the house only deduction.
But what this highlights is THIS IS A RIDICULOUS DEDUCTION TO BE ALLOWED IN THE FIRST PLACE. There are old abandon homes and buildings all over the city that the city has condemned and wants raised (demolished) ... will have to pay out of tax dollars to be raised... any Fire Dept. can burn most these down just for the asking... and we're giving millionaires all over America full home value minus land value to burn down old mansions to rebuild knew mansions.
They're getting their personal demolition costs provided for FREE.
This is the tax code for the rich that you and I seldom get to see.
These ridiculous loopholes so obviously should have been be plugged years ago... or more reasonably never have been allowed to be started in the first place. I look forward to your opinions.
This case was in our local newspaper today and is a perfect example of just one of the many, many tax loopholes for the rich that are never taken into consideration when the discussion of taxes is discussed.
You've all heard me talk about tax shelters and other ways to get around paying in you're taxes that really deducts from what people of wealth are actually paying in compared to what their tax bracket says they pay.
Here's one example I think everyone will see as ridiculous. And remember every dollar not paid in is a dollar more someone else has to pay to make up for.
Kirk Herbstreit famous OSU quarterback turned ESPN commentator who lives right here in Upper Arlington an extremely wealthy Columbus suburb is in a battle with the IRS. Seems he and his wife bought a home in Upper Arlington. Had the fire department burn it down for training purposes so they could build a new home on the property and took a $330,000 tax deduction for it.
And actually this is something that has been allowed as a deduction in many cases. The only thing that really tripped this up was the $330,000 deduction is said to be the whole properties value including the land... they still have the land and a big new mansion on it as well.
Herbstreit (who I've personally met, we used to manage some of his properties and is a great guy by the way) when audited he went ahead and paid the $134,604 in unpaid back taxes and interest and if trying now to get an adjusted amount back presumably for the house only deduction.
But what this highlights is THIS IS A RIDICULOUS DEDUCTION TO BE ALLOWED IN THE FIRST PLACE. There are old abandon homes and buildings all over the city that the city has condemned and wants raised (demolished) ... will have to pay out of tax dollars to be raised... any Fire Dept. can burn most these down just for the asking... and we're giving millionaires all over America full home value minus land value to burn down old mansions to rebuild knew mansions.
They're getting their personal demolition costs provided for FREE.
This is the tax code for the rich that you and I seldom get to see.
These ridiculous loopholes so obviously should have been be plugged years ago... or more reasonably never have been allowed to be started in the first place. I look forward to your opinions.