Update...Anthony Pi has the audacity to contact my mother and ask me to take down the review!
I had to argue with Anthony, through my mother, that my mother doesn't have to pay any capital gains tax due to her income bracket. He came back and argue that due to her situation with her sold property, she doesn't qualified for the 250,000 IRS exclusion.
The obvious question back to Anthony was why does IRS exclusion matters when my mother's capital gains tax rate is at 0%. His response was that "just to be sure" my mother doesn't pay any capital gains tax that she should do 1031 tax deferred exchange.
Anthony proposed to do a 1031 to "just to be sure" that my mom doesn't get taxed. 1031 is a "tax deferred exchange" which means the tax will be collected at some point. If she doesn't need to pay tax now, for sure, later she needs to pay out of her estate tax, especially with they way the laws are changing.
One thing Anthony is certain, it is the commission money hitting Anthony's pocket. He doesn't realize or disclose to his client that 1031 is only "delayed" the tax coming out of my mom's estate.
Why should my mother pay tax out of her estate by doing 1031 if her tax rate is at 0% today? (yeah, the answer is obvious)
The conclusion is that Anthony not only doesn't admit his wrong advise to my mother, he tries to cover it up by saying "just to be sure," using one lie to cover anther lie.
Think twice before selecting Anthony to be your agent. He is not trustworthy. His first priority is getting his commission and not your interest!
https://www.investopedia.com/ask/answers/06/capitalgainhomesale.asp
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Another update...Anthony, please stop giving my mother tax advises because you want to make a quick buck. She won't stop with messages coming from you stating that her entire profit is taxable!
Yes, the profit is taxable! And again, my mother's tax rate is 0%!!!
Just for argument sake:
Why Does Billionaire Warren Buffett Pay a Lower Tax Rate Than His Secretary?
So why is it that Buffett himself doesn't pay more tax? It's because the bulk of his income comes from dividends and long-term capital gains, which are taxed at a much lower rate than ordinary income.
As the CEO of Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B), Buffett pays himself a modest $100,000 salary....
... qualified dividends and long-term capital gains (which apply to investments held for at least a year and a day) are subject to the following tax rates:
Income Range: Single Tax Filers
Income Range: Joint Tax Filers
Tax Rate on Qualified Dividends and Long-Term Capital Gains
$0 to $40,000
$0 to $80,000
0%
$40,000 to $441,450
$80,000 to $496,600
15%
Over $441,550
Over $496,600
20%
DATA SOURCE: IRS.
Now, let's compare a $100,000 salary to $100,000 in qualified dividends and capital gains. The former would be subject to a tax rate of 22% to 24%, while the latter would be subject to a rate of just 15%. And that's exactly how the ultra-rich get away with paying such little tax, while ordinary earners pay such a comparatively high rate. Average earners don't tend to derive the bulk of their income from investments, which are treated more favorably.
https://www.fool.com/taxes/2020/09/25/why-does-billionaire-warren-buffett-pay-a-lower-ta/
Please, do this community a favor, stop giving tax advises! read more