I think your idea that depreciation reduces the asset value is a canard. In normal accounting where you depreciate over the useful life of the asset that might be true but if you buy a plane and fully depreciate it in year 1 that plane still has a lot of value in year 2 and in the ensuing years. Also, in order of magnitude, your example of using depreciation to offset rental income is thousand, perhaps million fold less than the benefit that billionaires achieve. I don't necessarily begrudge the billionaire use of this I would propose however if you use an asset as collateral perhaps you should pay some tax on the value borrowed. At least tot he extent it has appreciated over time.
From a tax perspective I'm not sure that billionaires pay their share of taxes. They typically use their assets as collateral to borrow and therefore don't trigger tax payments on liquidated assets. Then everything is sheltered under their business interests and are deductible expenses. A review of the OBBB will show that people who can purchase yachts, planes, laundromats, (for some reason) can fully depreciate them in year 1 to offset taxes. There are different rules if you can buy them.
So I commented back in July that I had only positive experiences with Vanguard. Well like all good things that has come to an end. I recently experienced a problem with account access and it remains unresolved for more than a week. Their last response was it will take at least a week more to resolve the problem. I am actually considering leaving Vanguard as their response has been woefully inadequate!
I have been with Vanguard for 25+ years. I had a 401k with them that I then rolled over to an IRA. When my wife retired we rolled her 403b account into a Vanguard IRA. In both instances Vanguard was especially helpful in the conversions. We also have a brokerage and cash plus account with them.
From the website perspective I have done quite a few transactions over the site and regularly check balances and have not experienced any issues.
I too use Vanguard so was able to easily find my return. It was 7.8% for the ten year period but I have a heavier stock allocation over that period. Earlier allocation was around 90% stock, more recently it is 75% stock all in index funds I should add.
Comments
I think your idea that depreciation reduces the asset value is a canard. In normal accounting where you depreciate over the useful life of the asset that might be true but if you buy a plane and fully depreciate it in year 1 that plane still has a lot of value in year 2 and in the ensuing years. Also, in order of magnitude, your example of using depreciation to offset rental income is thousand, perhaps million fold less than the benefit that billionaires achieve. I don't necessarily begrudge the billionaire use of this I would propose however if you use an asset as collateral perhaps you should pay some tax on the value borrowed. At least tot he extent it has appreciated over time.
Post: I think billionaires are under appreciated
Link to comment from November 17, 2025
From a tax perspective I'm not sure that billionaires pay their share of taxes. They typically use their assets as collateral to borrow and therefore don't trigger tax payments on liquidated assets. Then everything is sheltered under their business interests and are deductible expenses. A review of the OBBB will show that people who can purchase yachts, planes, laundromats, (for some reason) can fully depreciate them in year 1 to offset taxes. There are different rules if you can buy them.
Post: I think billionaires are under appreciated
Link to comment from November 17, 2025
So I commented back in July that I had only positive experiences with Vanguard. Well like all good things that has come to an end. I recently experienced a problem with account access and it remains unresolved for more than a week. Their last response was it will take at least a week more to resolve the problem. I am actually considering leaving Vanguard as their response has been woefully inadequate!
Post: Vanguard Complaints?
Link to comment from September 22, 2025
I have been with Vanguard for 25+ years. I had a 401k with them that I then rolled over to an IRA. When my wife retired we rolled her 403b account into a Vanguard IRA. In both instances Vanguard was especially helpful in the conversions. We also have a brokerage and cash plus account with them. From the website perspective I have done quite a few transactions over the site and regularly check balances and have not experienced any issues.
Post: Vanguard Complaints?
Link to comment from July 18, 2025
I too use Vanguard so was able to easily find my return. It was 7.8% for the ten year period but I have a heavier stock allocation over that period. Earlier allocation was around 90% stock, more recently it is 75% stock all in index funds I should add.
Post: What is The 10 Year Return on Your Portfolio?
Link to comment from November 26, 2024