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De Blasio Releases Tax Returns; Paid Effective 8.3% Rate

Tyler Durden's picture




 

Mayor Bill de Blasio is the first New York City mayor to release his tax returns in 12 years, according to the WSJ. de Blasio earned $165,000 as public advocate last year and brought in an additional $52,000 in rent on a second home he owns in Park Slope, according to his 2013 tax returns. Mr. de Blasio’s effective tax rate was 8.3%.

As WSJ reports, Mr. de Blasio’s predecessor, Michael Bloomberg, a billionaire who served as mayor from 2002 through 2013, released highly redacted copies of his return that gave scant information about his net worth.

In 2001, during Mr. Bloomberg’s first campaign for mayor, he lost his temper on the steps of City Hall when pressed by a reporter about why he was refusing to release his returns when his opponents had released their IRS filings.

 

“That’s fine,” Mr. Bloomberg snapped. “They don’t make anything.”

Which means, Mr. de Blasio is the first city mayor in 12 years to release a full copy of his tax returns.

New York City Mayor Bill de Blasio and first lady Chirlane McCray reported $165,047 in total income last year, according to a copy of their joint tax return released on Tuesday.

 

...

 

Mr. de Blasio’s effective tax rate was 8.3%.

 

...

 

The federal and state filings, released by his aides on Tuesday afternoon, show de Blasio and his wife, Chirlane McCray, reported receiving $52,000 in rent last year on the property where his mother lived before her death.

 

Despite their earnings, they reported taking a $6,493 loss on the home, because they paid $28,758 in mortgage and said the home depreciated by $21,547, according to tax code.

 

...

 

According to the return, the city’s first couple reported $5,597 in gifts to charity, roughly 3% of their total income.

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Wed, 04/16/2014 - 09:49 | 4664772 ebworthen
ebworthen's picture

"It's good to be King".

Fucking parasites.

Wed, 04/16/2014 - 09:52 | 4664779 fonzannoon
fonzannoon's picture

My condolences to Mr. Deblablio for managing to lose money in Park Slope Brooklyn during this epic boom. 

Wed, 04/16/2014 - 09:56 | 4664791 max2205
max2205's picture

8 % ?......nice

Wed, 04/16/2014 - 10:02 | 4664818 kaiserhoff
kaiserhoff's picture

The rest of the country really doesn't give a shit.

Now could all of the media, including ZH, give some attentions to Bath House's transcripts, bogus birth certificate, sexual habits, four social security numbers, etc, etc, ad infinitum???

Wed, 04/16/2014 - 10:04 | 4664827 Tengri Temujin
Tengri Temujin's picture

PAY WHAT I TELL YOU not what I payed

Wed, 04/16/2014 - 10:07 | 4664836 redpill
redpill's picture

He must have more deductions than just what is listed to get to 8%

Wed, 04/16/2014 - 10:13 | 4664861 GetZeeGold
GetZeeGold's picture

 

 

Socialism is never for the socialists.

Wed, 04/16/2014 - 10:40 | 4664972 HamRove
HamRove's picture

Of course, AND he's just better and smarter than all of us poor schlubs.

We, the useless eaters, just suck it up.

Wed, 04/16/2014 - 11:56 | 4665339 knukles
knukles's picture

Hobo Up Motherfucker

Wed, 04/16/2014 - 12:23 | 4665426 Stackers
Stackers's picture

He would be living under a bridge somewhere trying to live on $165k in NYC.

Wed, 04/16/2014 - 12:39 | 4665507 disabledvet
disabledvet's picture

more power too him i say. Bloomturd..."the billionaire who thinks taxes are for poor people." And people wonder why New York City is on the edge of going bankrupt again.

Wed, 04/16/2014 - 10:13 | 4664862 Dr. Richard Head
Dr. Richard Head's picture

Probably so.  I have been able to get my effective theft rate down to 10.8% on near $200K combined income of my wife and myself, but this year it was pushed up to 15.3%, as we jumped up a theft bracket.  One thing I noticed is that the deduction I used to be able to take are no longer available to me since I make too much to qualify.  My wife's earnings are now completely nullified, as the IRS tax bill alone is more than what she makes.  Take into consideration the SS Theft and fuck me!!!!!!

Two steps forward in my property, one step back with the IRS theft.  Fucking bastards. 

Wed, 04/16/2014 - 10:30 | 4664925 Buckaroo Banzai
Buckaroo Banzai's picture

Can we call this guy by his real name? He's Warren Wilhelm, Jr.

Wed, 04/16/2014 - 10:31 | 4664930 Hobbleknee
Hobbleknee's picture

Stop complaining and enjoy your "free" Obamacare.

Wed, 04/16/2014 - 10:33 | 4664940 Ghordius
Ghordius's picture

so do I get it right? 47% of Americans have a negative total rate for being net recipients, aka poor, 20% have it somewhere 10%, aka rich, and the reminder 33% is somewhere around 30%? serious, honest question, I find the US Tax system seriously puzzling

oh, and don't ask me how much we eurozoners pay, it's like something like on the other side of the twilight zone

Wed, 04/16/2014 - 10:46 | 4665000 Dr. Richard Head
Dr. Richard Head's picture

The arbitrary edicts of the politburo regarding what portion of wealth we can keep is puzzling.  Most of the "deductions" they allowed at one point or another was there to drive a certain industry, i.e. rental properties, auto lending interest, student loan interest, mortgage interest, etc. 

All I know is that I make my return as long as humanly possible by using every calculation worksheet and every possible deduction available (home office, car, trip miles, doantions, etc.).  I make it as long as I can as I have two friends that work for the IRS.  The front line of the IRS is nothing but a glorified telemarketer that can't even make sure all of their shit goes completely in the toilet when they use it.  The incompetance is used against them by people like me.  Extentions filed regularly, reduced my withholdings, and alwways use their payment plan (as it follows the Effective Funds Rate).  It's like free money compared to interest rates available through any other plebe mechanism available.  Too afraid to not file though, I utilize that for my local municipalities though.

Wed, 04/16/2014 - 11:32 | 4665197 seek
seek's picture

I think you have it about right, except the definition of "rich" gets really strange, where the richer they are they poorer they are through god knows what all accounting tricks, shell corporations and shelters.

I'm solidly in the 1% with an average income in the mid-six-figures, and my average effective tax rate over the past 10 years has been 33%, and it's climbing -- the effective tax rate for my 2013 return was 34%, v. 31.8% in 2012, even though I made 100K less in 2013 than 2012.

Once property and other taxes are kicked, my effective rate is easily north of 40%.

 

Wed, 04/16/2014 - 12:46 | 4665551 RafterManFMJ
RafterManFMJ's picture

HaHaHaHa suckers! I work off the books, and show only about 6K in income per year! We get HUD money for rent, subsidize heating, subsidizes eating, (You down with EBT? Yea! You know me!) and the freebies keep coming!! WE CANNOT KEEP TRACK OF THEM ALL!

3 meals per week at the Church-Free! Free phones for all! Soon free internet!

Our Earned INCOME Tax CREDIT is 5K per year! Our tax rate is negative 380 percent!

HaHaHaHa! So long, and thanks for all the Cheetos!

Signed

With sincere love and affection,

1/3 of the Amurikan Population

Wed, 04/16/2014 - 13:45 | 4665871 SilverRhino
SilverRhino's picture

You just described my bitch of an ex-wife.

Wed, 04/16/2014 - 14:44 | 4666142 SmackDaddy
SmackDaddy's picture

you married her dope

Wed, 04/16/2014 - 16:40 | 4666696 RafterManFMJ
RafterManFMJ's picture

Cease and desist with the White Knighting.

Thu, 04/24/2014 - 15:35 | 4692114 SilverRhino
SilverRhino's picture

In her defense she was an awesome fuck.

And I have never claimed to have never made a mistake.  

 

Wed, 04/16/2014 - 13:47 | 4665882 SilverRhino
SilverRhino's picture

That's what I dont get .... I'm not in the 1% (more like 2) but still .... how the hell does these people get out of paying 33% or so.  I'd disgusting to see how much the feds freaking steal from us. 

 

Wed, 04/16/2014 - 20:25 | 4667514 StychoKiller
StychoKiller's picture

Start your own business and learn the ways of Schedule C.

Wed, 04/16/2014 - 14:51 | 4666161 SmackDaddy
SmackDaddy's picture

Ghord, my wife and I combine for about $175k.  According to the stats, I think we are like 92-93 %tile.  We pay an effective federal income tax rate around 12%.  I would say this would be typical skilled laborers and people with decent college degrees who are good at what they do and own a home.  Counting SS, property, state income, local income, sales taxes, etc etc. getting closer to 35+% tax rate.

But I'm thinking a lot of what is going to my 401k and health insurance should be included in the tax calc, cuz I'm not sure if I'll ever see much of that myself.

Wed, 04/16/2014 - 11:29 | 4665185 Augustus
Augustus's picture

What you are describing is the effect of the marginal rate.  Make more, increased rate on higher earnings, lose deductions, effective increased rate on previous income level, overall result is a much higher rate on the increased income.

The same thing, but worse, applies to most of the people getting checks from the govt.  Why work when not working pays better.

Wed, 04/16/2014 - 14:42 | 4666130 SmackDaddy
SmackDaddy's picture

My wife and I combine to make almost as much as you, my boss, and my neigbor.  But since my boss and my neighbor have their wives stay at home, they dont have a $24k annual child care bill.  Not bitching, I guess (wouldnt trade places with those guys for a lot of reasons).  But just pointing out there's a big difference between making $200 and combining for $200k when you have kids.

Wed, 04/16/2014 - 10:03 | 4664820 nevadan
nevadan's picture

I wonder what his secretary paid?

Wed, 04/16/2014 - 10:55 | 4665048 SilverRhino
SilverRhino's picture

How did he avoid the AMT?   Fuck I need a better accountant. 

 

Wed, 04/16/2014 - 11:34 | 4665203 flysofree
flysofree's picture

Good question, he must be under the minimum before AMT kicks in?

Wed, 04/16/2014 - 12:07 | 4665377 seek
seek's picture

The claimed income (if it's to be believed) is 10K below the AMT threshold, and also it sounds like he claimed accelerated depreciation, which triggers a different recordkeeping requirement (form 6251) and nukes the AMT calculations, regardless. So he escaped it two ways.

Again, if his claimed income is to be believed.

Wed, 04/16/2014 - 11:36 | 4665212 seek
seek's picture

Tell your current accountant he can do anything he wants because the return will never be audited since you're a member of the club, and trust me, even the shittiest accountant can avoid the AMT. Indeed, you're probably incentivised to use a shitty accountant so you can blame him if your rigged return ever sees the light of day.

Wed, 04/16/2014 - 13:49 | 4665890 SilverRhino
SilverRhino's picture

I am using the shittiest accountant I know (ME) and Turbo-Fuck-you-in-the-a$$-Tax for small businesses.   

There has GOT to be a better way.  

 

I can garden, go blowling or do accounting.   These are the things I suck at.  Everything else ... game on.  Ugh

 

Wed, 04/16/2014 - 14:57 | 4666212 SmackDaddy
SmackDaddy's picture

Turbo tax is pretty good.  But it's clearly designed for use by retards.  Read the 1040 instructions off the IRS website and you'll know more than 80% of tax accountants.    Then file at freeefilefillableforms.com 

Until the reset that is

Wed, 04/16/2014 - 11:50 | 4665304 Frostfan1
Frostfan1's picture

What makes AMT kick in based on what we know for a married guy two kids typical deductions making $165k?

Wed, 04/16/2014 - 14:45 | 4666150 Lord Koos
Lord Koos's picture

You can bet it's more than Bloomberg and the other .01 percenters paid...

Wed, 04/16/2014 - 10:01 | 4664813 rtalcott
rtalcott's picture

Read that sentence about depreciation again...does it make any sense at all?

Wed, 04/16/2014 - 10:04 | 4664828 ParkAveFlasher
ParkAveFlasher's picture

It makes sense if you are an NYC resident like me, who only sees appreciation in his assessed value for the purposes of taxation, regardless of what the actual market is actually doing.  It makes perfect sense that this beaky dred-chaser would be helped along in such a bureacratic, opaque means of penny-pinching favor-getting.

Wed, 04/16/2014 - 10:07 | 4664837 fonzannoon
fonzannoon's picture

it's been a while since i had to know it but i am pretty sure you can depreciate a rental property over 26 years or something like that. 

Wed, 04/16/2014 - 10:13 | 4664855 ParkAveFlasher
ParkAveFlasher's picture

Oh yeah, there are some comforts to being a slumlord.  Is it no surprise that the only way to avoid taxation - besides being connected - is to be the heavily mortgaged and underwater owner of a decrepit moneypit juicing the hell out of your renters, building out every square foot to increase your units?  This is what the regulation is breeding. 

Wed, 04/16/2014 - 10:12 | 4664856 rtalcott
rtalcott's picture

True...I guess I don't like the wording...you don't "lose money" due to depreciation...it's an expense associated with the use of an asset...

Wed, 04/16/2014 - 12:31 | 4665465 BurningFuld
BurningFuld's picture

There should be a recapture when the asset sells. However I'm sure he has a trick up his sleeve for that one. Like maybe living there for 2 years before selling it???

Wed, 04/16/2014 - 10:02 | 4664814 ParkAveFlasher
ParkAveFlasher's picture

Really, what an ass-hole.

Wed, 04/16/2014 - 10:25 | 4664909 RSloane
RSloane's picture

LMAO Fonz that's what I was thinking.

Wed, 04/16/2014 - 10:37 | 4664954 john_connor
john_connor's picture

It appears to be an accounting loss due to depreciation.  Looks like it cash flows just fine.

Wed, 04/16/2014 - 11:00 | 4665067 ParkAveFlasher
ParkAveFlasher's picture

EXACTLY

Wed, 04/16/2014 - 11:10 | 4665107 Bosch
Bosch's picture

The depreciation amount would have already been captured in his reported AGI amount.  

So to drop his tax rate that low it had to come through itemized deductions- and since we know what his charitable contribution percentage was only 3.4 % ($5,612) of AGI then it probably came from mortgage interest or some bullshit miscellaneous itemized deductions that a good communist should take for the better of the people.   

Wed, 04/16/2014 - 11:47 | 4665287 ParkAveFlasher
ParkAveFlasher's picture

He's very likely mortgaged to the hilt on that rental property.  That's my entire thesis here.

1) Buy a house you can't afford at the top of the market via cheesy mortgage.  Make sure the house is reasonably decrepit.  Maybe his wife got some kind of minority discount on top, some kind of balloon.  You can always claim hardship later...say, aren't all minorites hardship cases?  That's the angle.

2) Build out the square footage to cram as many units as you can.  Legality should be a consideration only in retrospect, that is, after you are found-out, which doesn't happen very often.

3) Oh, the market crashed!  Hoocouldanoadit?  Lookey here, I need mortgage assistance!

4) My oh my, I'm still getting a tremendous rent roll!  Good thing, I gotsta buys me a Coach bag.  Oh well, got to pay the banks too, right?  Now where's my aid at?  Oh there it is, my assessment is reduced, so now I no gots to send the taxman a check.  Massa Boss Man done do me right!

Wed, 04/16/2014 - 11:41 | 4665242 Frostfan1
Frostfan1's picture

My condolences for you not understanding that the mayor is cash flow positive yet recordinga loss on his tax return legally.

Wed, 04/16/2014 - 10:02 | 4664817 lordylord
lordylord's picture

Looks like the "fair share" mayor of New York Shitty thinks 8% is fair for him and 35% is fair for successful harworking people.

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