What about L-arginine?
343 karma · joined June 25, 2010
I don't follow. The contractor isn't forced to work for months without pay against his will if the client stops paying.
> This is a cost of doing business. 4-6 months of rent
Losing 4-6 months of rent erases multiple years of profits on that property
> There's huge asymmetry here, landlords have lots of wealth, lots of flexibility, lots of recourse and backup plans, but their tenants often do not
By your logic all business owners similarly are very wealthy and can absorb large losses. So all businesses have a duty to give way several years of profits to needy customers. Food is a necessity of life. Do restaurants have a duty to let customers eat for free?
It's an accounting strategy that we are using for all fixed assets. All things have a useful life, and we just need a way to account for that. Not all improvements to a property will be durable. (Only land has durable value, which is why we only depreciate the portion of the purchase price that was for the improvements to the land)
The new roof we put on a property has a limited useful life. The kitchen remodel has a limited useful life.
If a property is not well maintained, then it may not be worth much in the distant future. If it is well maintained it may be worth more later.
If there is residual value, then we pay the tax when we recapture that value at a sale. If there is no value left at the end, then we don't.
Also, not all houses exist in San Francisco, where a dilapidated tool shed can be worth $1MM and be expected to double every year. Many markets are not very hot in terms of price appreciation. In my midwest market, I'm not even sure there has been any notable appreciation in the last decade. (And if there was, please don't let the county assessor know.)
Just to be clear for other readers. The only special tax write downs for real estate is depreciation, which isn't a write-down, it's a deferral. (OK, yes you can escape the deferred tax by dying)
Having a mortgage is irrelevant to the tax situation. Mortgage interest is not treated any different than interest on any other business or investment financing. Even the margin interest in our brokerage accounts is deductible.
>stuck paying someone else's mortgage.
What he meant was that when someone is not paying the rent, and you are evicting them, you are paying for the living expenses for a stranger who may holding your property hostage, who may be actively abusing the property, who may be deliberately prolonging the experience.
This does not feel good to pay out of your own pocket to shelter someone else's family for any amount of time. There is no recourse to recover the money. Your best outcome it to just get the property back as soon as possible, even if that means rewarding the bad tenant with more money. And in most places in the US now, evictions are not even possible due to virus lockdowns.
Not paying rent is theft. It hurts financially and emotionally when people steal from you.
And for the soft-hearted landlords who didn't screen properly, or took a chance on a sob-story, it was already months of slow-pay or no-pay before you started the eviction. Can you imagine someone stealing 4-6mo of living expenses from you?
In the real world, there are thousands of landlords that are just regular people and regular businesses that are not royalty. You can live anywhere you like.
This site is also a good platform for card games in general
The underlying issue seems to be whether it is ethical for a business owner to make money.
I'm skeptical that any community really recycles all the plastic that gets sent for recycling. Especially now that china isn't taking our trash. Personal care products like lotion and shampoo are always going to be heavily contaminated with the products, and probably need extra work.