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Message:: [QUOTE="yakpoo, post: 840482, member: 18157"]LOL! Actually there are four (4) areas where the IRS currently collects tax on imputed income (non-monetary income). I'm not an accountant so I'm going on memory, but as I recall, one taxable event has to do with domestic partnerships and there's another that has to do with divorce...don't remember the others. Over half of European contries tax imputed income on real estate. In 1994, the Dems proposed taxing imputed income on real estate, also. It died after the GOP took over Congress in 1995. The way imputed income works is that there would be two (2) taxable events associated with real estate... 1. Capital gains resulting from the sale of a house (I'm not sure what the current law is on this) 2. Annually, the imputed income derived from the "use" of the house. For instance, you buy a house and your monthly payment is $1000 and it would cost $1000 to rent a similar house in your neighborhood...the "imputed income" is zero (0). If after 10 years, your payment is still $1000, but the rental market rate is now $2000 for a similar rental in your neighborhood. The difference is $1000 and you now have an annual "imputed income" of $12,000 (12 x $1000). That $12,000 is added to your gross income. If you choose to rent out your house, you would pay capital gains on the net income. Taxing imputed income while you live in the house approximates the same thing...you're earning a non-monetary income by living in the house. If the Dems revisit this, it will put a lot more people into the AMT. If you hear the words "Imputed Income" on TV...that's what it is. If you don't support it, make your voice heard! :hammer:[/QUOTE]

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