#Monopoly rules mortgage code

The Bank Can Make Permanent Errors in a Customer's Favor A community chest card instructs unlucky players to 'Pay school tax of $150.' A more realistic game would instruct players to pay school taxes based on a percentage of the total value of all properties owned. School taxes, which are paid from property taxes in real life, also are based on chance in Monopoly. There is no tax on unimproved property, but in real life, property taxes are based on the value of both land and improvements and must be paid on a semi-annual, annual or bi-annual basis. Instead, players who draw an unfortunate community chest card get assessed for street repairs and must pay the bank $40 per house and $115 per hotel. Monopoly players also don't pay property taxes on a regular basis. Furthermore, real-life income tax is based on income, not net worth.

#Monopoly rules mortgage code

In reality, while many provisions of the income tax code do provide for two or more ways to calculate tax liability, taxpayers often have the option to choose the calculation that results in the lowest liability.

When a player lands on the Income Tax space, he or she may pay taxes of either $200 or 10% of net worth (including cash, land and buildings), but cannot first add up assets and then choose to pay the cheaper amount. The way taxes are calculated in Monopoly isn't realistic, either. If Monopoly were like real life, players would pay income tax each time they passed Go and collected $200 they would also pay it when they drew cards like 'Receive for services $25,' 'From sale of stock you get $45' and 'You have won second prize in a beauty contest: Collect $10.' Monopoly players don't pay income taxes on a regular basis - only when they randomly land on the Income Tax board space. You never know how much income or property tax you'll pay or when you'll have to pay it in Monopoly, and taxes fall on players randomly rather than being based on their actual economic activities. The idea that income is based on luck is a self-defeating attitude which prevents many people from reaching their financial potential.

Only a small percentage of the population (gambling winners and inheritance recipients) receives an income based on luck. In real life, the amount of money you earn is primarily based on skill development and hard work. Players get paid - and have to pay -when they randomly draw cards with instructions, such as 'Your building loan matures: Collect $150' and 'You have been elected chairman of the board: Pay each player $50.' Income is also based on which properties you happen to land on and whether you're able to accumulate monopoly holdings of like-colored properties that allow you to collect rent from your opponents. How often you pass Go depends on the luck of the numbers you roll with the dice and any Chance and Community Chest cards you draw that may help you move around the board. In Monopoly, you receive a $200 salary every time you pass Go. While real-life rules do restrict what improvements owners can make to their properties through city zoning laws, neighborhood deed restrictions and homeowners association requirements, there is no need to own two or three adjacent properties before building is allowed, and there is no requirement to build multiple small properties as precursors to a larger property. Players also have to build small structures (houses) before they're allowed to build large structures (hotels). In real life, most people do not pay cash for properties they use mortgages, and homeowners collect rent on mortgaged properties all the time.Īnother aspect of property ownership unique to Monopoly is that players cannot improve their properties until they own all the properties of the same color, and players must build evenly across their properties. While the property is mortgaged, the owner cannot collect rent. For example, a player who owned Kentucky Avenue, purchased for $220, could get $110 for the property by mortgaging it to the bank. Mortgages are only used when players run into financial trouble they may mortgage properties they own back to the bank for the mortgage price printed on the title deed card for that property. Monopoly players also must pay cash for land and structures instead of financing them with a mortgage.

In real life, only foreclosed properties are purchased from banks properties are usually transferred between individual owners. When you buy an unimproved property, a house or a hotel in Monopoly, you buy it from the bank. The rules do reflect reality somewhat, however, in that they allow players to negotiate trades for unimproved properties, railroads and utilities (but not houses or hotels), based on whatever values they agree upon.

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