Re:How Manhattan Became a Rich Ghost Town
by brenschluss on Thursday October 18, 2018 @11:39AM
(#18249216)
I thought that technically the LL then owes the IRS in imputed income? (Income based on market-rate rental values)?
Re:How Manhattan Became a Rich Ghost Town
by pmalynin on Thursday October 18, 2018 @11:54AM
(#18249354)
Imputed income is not taxable in the United States, according to Wikipedia.
Re:How Manhattan Became a Rich Ghost Town
by megaman8 on Thursday October 18, 2018 @12:47PM
(#18249884)
i think it may have to do with the type. I won a free yearlong gym-membership in a contest, from a govt workplace and was told I would have to pay imputed taxes on it. Needless to say, I turned it down.
Re:How Manhattan Became a Rich Ghost Town
by notyourday on Thursday October 18, 2018 @08:07PM
(#18253396)
That's because it was a gift of a fixed value that gym declared. If gym ran it as a promotional sale for $1.00 then you would have needed to pay taxes on a $1.00.
It is similar to person A borrows from a person B $10,000. B pays back $100. Person B decides that A is a deadbeat and declares $9,900 a loss. Since B no longer needs to repay $9,900 the $9,900 becomes income to A. B sticks A with a 1099 for $9,900. Now A needs to pay taxes to the IRS on $9,900 that he got from B.
Re:How Manhattan Became a Rich Ghost Town
by notyourday on Thursday October 18, 2018 @11:59AM
(#18249403)
Not in the United States.
It is not possible to close this loophole because 322 Prince St, LLC does not have to rent the space to Joe's Boutique for $7,000 a month rather than Starbucks for $17,000 a month - it can rent that space to "JP772 Holding, Inc" out of Nevada for $10/day which would be owned by the members of 322 Price St, LLC which would satisfy the rental requirement and keep the place unoccupied until someone offers $17,000/mo in rent.