Question for those who live in California

[plowhog]

I'm doing fine, but I don't sit around with catchers mitts on both hands waiting for someone to give me something.

lol ...

 

[ultrarunner]

Yes because 4 years ago we were shutdown from Covid and people were dying.

I was still going into work each day and no relief checks came my way.

Hospitals never closed and no matter who walked through the door they were treated.

 

[Eagle1]

I was still going into work each day and no relief checks came my way.

Hospitals never closed and no matter who walked through the door they were treated.

Never got a day off and we were busier than normal with all the"covid refugees" traveling all around the country since they did not have to work.
Had a lot of teachers/professors cross country tripping while holding Zoom classes.

 

[jyoutz]

I was still going into work each day and no relief checks came my way.

Hospitals never closed and no matter who walked through the door they were treated.

But what about no toilet paper?

 

[jyoutz]

Q- do you believe Ultrarunner's rental and property circumstances have received fair treatment over the past few years? If you defend those practices, maybe some relevant rebuttal would be better?

A selective chart pre-dating WWII and the Great Depression of the 1930's seems a stretch? Is there a chart where those same numbers are adjusted for stagflation (Carter) and current inflation? Or where the Great Depression (and following runup) are adjusted out?

Maybe the lofty thinker, Robert Reich, amps up his followers with comments like: "Have you seen his yacht?" (Class envy.) My view of a just society is where fair treatment of others does not depend on whether they have many or few material possessions. Something about a nation of laws, not men.

But, to be fair, I don't live in New York .....

I believe that ultrarunner’s rental circumstances are uniquely a California situation.

 

[ultrarunner]

I believe that ultrarunner’s rental circumstances are uniquely a California situation.

Yes and no…

Anyone in Washington State with residential rentals can jump in but I find more similarities than differences.

If there is one take away it would be just because it starts in California or the West Coast doesn’t preclude spreading East.

The list is very long of only in California that went nationwide… just something to think about.

 

[jyoutz]

Yes and no…

Anyone in Washington State with residential rentals can jump in but I find more similarities than differences.

If there is one take away it would be just because it starts in California or the West Coast doesn’t preclude spreading East.

The list is very long of only in California that went nationwide… just something to think about.

True, but there’s also a lot of CA things that remain CA things.

 

[jyoutz]

True, but there’s also a lot of CA things that remain CA things.

Or in this case, maybe just Bay Area things?

 

[plowhog]

I believe that ultrarunner’s rental circumstances are uniquely a California situation.

Maybe that is fair if you don't count the communist countries!

 

[two_bit_score]

Say it with me...

The stock market is not the economy.

An adage as old as time...

He doesn't understand inflation or how the market is manipulated.

 

[Hughman]

Not necessarily a California thing. More likely an Oakland thing. I don't have any of the problems ultra is dealing with.

 

[Snobdds]

He doesn't understand inflation or how the market is manipulated.

He sure has the social angle down though...

We know what that implies...

 

[plowhog]

I don't have any of the problems ultra is dealing with.

Maybe: "I don't have any of the problems *yet*?

My last residential rental in CA is in Sacramento. It is rent-restricted like Ultra's is. (max rent increase of 5% annually no matter how much my costs might increase.) The County also collects a "rental property fee" for homes not owner occupied. No tenant registration-- yet.

Like his, my CA rental is subject to "just cause" evictions. Every rental in CA is subject to that. The "Tenant Protection Act" of 2019 is State law-- not regional-- then it was further strengthened after that. In some ways the tenant now has more rights than the property owner.

I don't know if my tenants could have exploited Covid to stop paying rent like Ultra's did. The wife is an RN-- so there was plenty of work, overtime pay, and $$ to continue paying rent.

I am very fond of my last rental in CA. But I think I need to get out.

I've been lucky to avoid many of the "teeth" in these new regulations but it's just a matter of time before I get hammered like so many other landlords. Too risky. I can put the money in a term investment and yield as much return without the maintenance, hassle, and risk. I like my property and otherwise would keep it-- but what used to exist no longer does.

 

[Hughman]

I'm not saying his problems aren't real. I just choose to own rental property in counties that don't have draconian rent control policies. That being said, I agree that it is time to sell the rentals. There are much easier ways to make (or lose) money.

 

[ultrarunner]

I'm not saying his problems aren't real. I just choose to own rental property in counties that don't have draconian rent control policies. That being said, I agree that it is time to sell the rentals. There are much easier ways to make (or lose) money.

Me too… everything I have mentioned has evolved since I became a housing provider…

It’s safe to say San Francisco and Berkeley are in lockstep with with Oakland and Oakland just adopts San Francisco and Berkeley ordinances.

As plowhog mentioned statewide expansion is fully embraced with many only in the Bay Area now law in all of California.

I’ve seen very much the same in Washington State…

These are only 2 of the 48 states but represent significant influence over the rest of the country.

There was a time when only California mandated Unleaded Fuel and we know how that went and the same for same *** marriage, EV mandates… well you see my point.

 

[two_bit_score]

He sure has the social angle down though...

We know what that implies...

Exactly! And talking points.

 

[ultrarunner]

MSN

Not necessarily just a California story...

 

[ultrarunner]

This new California bill could ban self-checkouts at grocery, retail drug stores

A proposed Senate bill would prohibit self-checkout lanes for customers at all California grocery and retail drug stores unless certain conditions are met.

www.ksby.com

 

[plowhog]

The CA budget is ... again ... a mess. This year's deficit is touted at $56 billion but many think it is much higher. The Governor is proposing to further raise taxes on high income residents by eliminating the "net operating loss" (NOL) provision of the tax code.

Here was my personal experience with living in CA, doing two years of stock market investing, and bumping into NOL tax laws:

Year 1- I made a $50k profit. So far, so good. It was considered "capital gains" income. On my tax return, the extra $50k was added to my "ordinary income" (from my business.) My CPA said the two were lumped together. I immediately paid taxes owed on the combined amounts.

Year 2- The market declined. I lost $50k in the market. Called a "capital loss." I still had ordinary income from my business. But-- big change-- my CPA said I could not deduct the "capital loss" against my ordinary income. According to NOL rules, the deduction on a capital loss was limited to maximum $3,000 per year. Unlike the income side, where tax on gain is immediately due, on the loss side it took 17 years to slowly catch up to "realize" the entire deduction.

These were the rules were in place *before* the proposed change. Now, the CA Governor is proposing to eliminate NOL deductions for losses entirely.

My question-- who would buy or sell stocks, or invest in *anything* in that taxation climate? I don't get it ....

From the article:

"California's budget situation is a mess," said Republican Assemblyman Vince Fong, vice chair of the chamber's budget committee and a congressional candidate. I have said repeatedly that budget gimmicks, cost shifts and more borrowing only creates more problems in the future."

State budgeting is a guessing game, particularly in California, where a progressive tax system means the state gets the bulk of its tax collections from rich people. About half of the state's income tax collections came from just 1% of the population in 2021."

California governor would slash 10,000 vacant state jobs to help close $27.6 billion deficit

California has a budget deficit of $27.6 billion, Gov. Gavin Newsom announced Friday — a gap so wide that he's proposing cutting 10,000 vacant state jobs and suspending some widely used business tax deductions.

www.kcra.com

 

[ultrarunner]

The CA budget is ... again ... a mess. This year's deficit is touted at $56 billion but many think it is much higher. The Governor is proposing to further raise taxes on high income residents by eliminating the "net operating loss" (NOL) provision of the tax code.

Here was my personal experience with living in CA, doing two years of stock market investing, and bumping into NOL tax laws:

Year 1- I made a $50k profit. So far, so good. It was considered "capital gains" income. On my tax return, the extra $50k was added to my "ordinary income" (from my business.) My CPA said the two were lumped together. I immediately paid taxes owed on the combined amounts.

Year 2- The market declined. I lost $50k in the market. Called a "capital loss." I still had ordinary income from my business. But-- big change-- my CPA said I could not deduct the "capital loss" against my ordinary income. According to NOL rules, the deduction on a capital loss was limited to maximum $3,000 per year. Unlike the income side, where tax on gain is immediately due, on the loss side it took 17 years to slowly catch up to "realize" the entire deduction.

These were the rules were in place *before* the proposed change. Now, the CA Governor is proposing to eliminate NOL deductions for losses entirely.

My question-- who would buy or sell stocks, or invest in *anything* in that taxation climate? I don't get it ....

From the article:

"California's budget situation is a mess," said Republican Assemblyman Vince Fong, vice chair of the chamber's budget committee and a congressional candidate. I have said repeatedly that budget gimmicks, cost shifts and more borrowing only creates more problems in the future."

State budgeting is a guessing game, particularly in California, where a progressive tax system means the state gets the bulk of its tax collections from rich people. About half of the state's income tax collections came from just 1% of the population in 2021."

California governor would slash 10,000 vacant state jobs to help close $27.6 billion deficit

California has a budget deficit of $27.6 billion, Gov. Gavin Newsom announced Friday — a gap so wide that he's proposing cutting 10,000 vacant state jobs and suspending some widely used business tax deductions.

www.kcra.com

A death by a thousand cuts?

It’s clear capital and talent have options.

Physically leaving is often the easy part but separating to the satisfaction of the California Franchise Tax Board often comes at a price.

If the new proposed revamp of Capital Gains come to fruition some high earners may see combined 60% tax rate.

Dads CPA moved to Nevada to die… CPA words.

He said it would be irresponsible at the time to die in California.