4 ms·

Also kinda awesome -- Theft.

by matusp 3y ago

jLaForest 3y ago
Like the theft of local tax revenue by running an unregistered business?
- shswkna 3y ago
  There is a correct way to address this by slapping him with a hefty fine. But having someone so clearly misuse laws meant to protect vulnerable persons, should not evoke sympathy. She should be thrown out of the place quite literally.
- KoftaBob 3y ago
  Don't AirBnB hosts pay tax on their income?
  - sokoloff 3y ago
    Presumably on the profit, not on the gross income.
    - gruez 3y ago
      Isn't that consistent with operating any other kind of business?
      - sokoloff 3y ago
        Yes, of course, with the asterisk that the allowable non-cash expenses for a rental property are pretty high, resulting in typically a low net income (and current taxes) as compared to the free cash flow.
        gruez 3y ago
        >Yes, of course, with the asterisk that the allowable non-cash expenses for a rental property are pretty high For instance? Do you get to deduct your whole mortgage or something?
        sokoloff 3y ago
        You get to deduct the interest portion of the mortgage (but that's a cash expense, so hits free cashflow as well). Depreciation is the non-cash expense. It's not exactly as simple as this, but you can depreciate a residential building at 1/27.5 per year and commercial at 1/39 per year. That means if you buy a property for $1.5M where the land is worth $418K and the building $1072K, if it's residential, you'll get a reduction of income of $39K/yr if it's residential and $27.5K/yr if it's commercial. That of course decreases your basis in the property by the same amount (making it a timing preference, not a permanent preference).
        RugnirViking 3y ago
        Thats genuinely incredible. Reminds me of when I looked into accounts at maersk and realised they did a similar thing with their ships. The idea that something could ever depracate all the way to zero but still be on the books as an asset seems broken to me but I'm not a financial guy so I haven't been able to dive into arguments about why it may or may not make sense.
        sokoloff 3y ago
        The fundamental idea is "things wear out" and that wearing out is a real cost (albeit a lumpy, non-cash cost). In your personal life*, your roof gradually wears out. You buy a place and, at some point in the future, you have to replace the roof. If you sell a house with a 30 year old roof, you get paid less for the property than if it had a 30 day old roof on it. If that roof was on a piece of incoming-generating property, it would seem wrong to say "for 24 years, the roof was perfect and then in the 25th year, it degraded all at once, needing replacement". If you sell the building halfway through the roof's expected life, it seems wrong that you got paid less for the building (because the buyer knows the roof is ~50%) but that you get no credit for that loss in value while it was happening. Same for Maersk: if they had a freshly commissioned ship and a 20 year old ship with the same original specs, the new one is worth more money to a buyer. So, the tax system says "for business-use property, we allow depreciation to model that things wear out and become worth less money over time". This is true for your rental house, an airplane, a ship, a laptop, a desk, a chair, etc. If you have a roof (on a 27.5 year depreciation schedule) that you manage to get 40 years out of, you get to deduct the value of the roof over the first 27.5 years and then get no deduction for the last 12.5 years because your basis in the roof is zero. Likewise, if you only get 20 years and a day out of it, you depreciate it at 1/27.5/yr for the first 20 years and then take all the remaining basis as a deduction on the day you replace it. * - where house repairs are not deductible, because they're a personal consumption expense.
NotSuspicious 3y ago
Hell yeah
thathndude 3y ago
Except, if you read the headline, the law is protecting this guy. It’s not like this person is barricaded in the house with guns and ammunition holding off a siege from the police. That’s what makes the story noteworthy. Somehow a person can do this and NOT go straight to jail 450 days ago for trespassing
- KoftaBob 3y ago
  The Airbnb guest is a woman, just to nitpick
RugnirViking 3y ago
well yeah. Same way people like heist movies or murder mysteries. Theres something compelling about something so brazen. Doesn't mean i'd ever want to meet the people involved or think they're good or whatever
willcipriano 3y ago
Sometimes the streets are full of hackers, hacking into the local footlocker or a small business. Subscribe for tips on how to hack sex workers for free sex.

Also kinda awesome -- Theft.

by matusp 3y ago

Also kinda awesome -- Theft.

jLaForest 3y ago

Like the theft of local tax revenue by running an unregistered business?

shswkna 3y ago
There is a correct way to address this by slapping him with a hefty fine. But having someone so clearly misuse laws meant to protect vulnerable persons, should not evoke sympathy. She should be thrown out of the place quite literally.
KoftaBob 3y ago
Don't AirBnB hosts pay tax on their income?
- sokoloff 3y ago
  Presumably on the profit, not on the gross income.
  - gruez 3y ago
    Isn't that consistent with operating any other kind of business?
    - sokoloff 3y ago
      Yes, of course, with the asterisk that the allowable non-cash expenses for a rental property are pretty high, resulting in typically a low net income (and current taxes) as compared to the free cash flow.
      - gruez 3y ago
        >Yes, of course, with the asterisk that the allowable non-cash expenses for a rental property are pretty high For instance? Do you get to deduct your whole mortgage or something?
        sokoloff 3y ago
        You get to deduct the interest portion of the mortgage (but that's a cash expense, so hits free cashflow as well). Depreciation is the non-cash expense. It's not exactly as simple as this, but you can depreciate a residential building at 1/27.5 per year and commercial at 1/39 per year. That means if you buy a property for $1.5M where the land is worth $418K and the building $1072K, if it's residential, you'll get a reduction of income of $39K/yr if it's residential and $27.5K/yr if it's commercial. That of course decreases your basis in the property by the same amount (making it a timing preference, not a permanent preference).
        RugnirViking 3y ago
        Thats genuinely incredible. Reminds me of when I looked into accounts at maersk and realised they did a similar thing with their ships. The idea that something could ever depracate all the way to zero but still be on the books as an asset seems broken to me but I'm not a financial guy so I haven't been able to dive into arguments about why it may or may not make sense.
        sokoloff 3y ago
        The fundamental idea is "things wear out" and that wearing out is a real cost (albeit a lumpy, non-cash cost). In your personal life*, your roof gradually wears out. You buy a place and, at some point in the future, you have to replace the roof. If you sell a house with a 30 year old roof, you get paid less for the property than if it had a 30 day old roof on it. If that roof was on a piece of incoming-generating property, it would seem wrong to say "for 24 years, the roof was perfect and then in the 25th year, it degraded all at once, needing replacement". If you sell the building halfway through the roof's expected life, it seems wrong that you got paid less for the building (because the buyer knows the roof is ~50%) but that you get no credit for that loss in value while it was happening. Same for Maersk: if they had a freshly commissioned ship and a 20 year old ship with the same original specs, the new one is worth more money to a buyer. So, the tax system says "for business-use property, we allow depreciation to model that things wear out and become worth less money over time". This is true for your rental house, an airplane, a ship, a laptop, a desk, a chair, etc. If you have a roof (on a 27.5 year depreciation schedule) that you manage to get 40 years out of, you get to deduct the value of the roof over the first 27.5 years and then get no deduction for the last 12.5 years because your basis in the roof is zero. Likewise, if you only get 20 years and a day out of it, you depreciate it at 1/27.5/yr for the first 20 years and then take all the remaining basis as a deduction on the day you replace it. * - where house repairs are not deductible, because they're a personal consumption expense.

NotSuspicious 3y ago

Hell yeah

thathndude 3y ago

Except, if you read the headline, the law is protecting this guy. It’s not like this person is barricaded in the house with guns and ammunition holding off a siege from the police. That’s what makes the story noteworthy. Somehow a person can do this and NOT go straight to jail 450 days ago for trespassing

KoftaBob 3y ago
The Airbnb guest is a woman, just to nitpick

RugnirViking 3y ago

well yeah. Same way people like heist movies or murder mysteries. Theres something compelling about something so brazen. Doesn't mean i'd ever want to meet the people involved or think they're good or whatever

willcipriano 3y ago

Sometimes the streets are full of hackers, hacking into the local footlocker or a small business. Subscribe for tips on how to hack sex workers for free sex.