πŸ€– SpaceX IPO, Mamdami Rent Freeze, We beat the IRS again!



Romeo Razi, CPA

June 29th

πŸš€SpaceX IPO'd, and then it didn't....sort of

πŸš€ Elon finally wrang the bell after spending 24 years of flying $#!t into space. It was one of the most hyped meme-stock IPOs ever!

The stock was supposed to start at $135 a share, but it opened at $150. And this sucker went all the way up to a high of $225.64 within a week.

Two trillion dollar market cap, roughly the GDP of Italy. Until it wasn't 😠.

Unfortunately for Retail the stock pulled an IcarusπŸͺ½. It flew too close to the sun, the wings melted, and down it came.

That's right. At the time of this writing it's back to $155, a 32% pullback from its high. I guess you win some, you lose some.

πŸ€–The AI twins might've gotten cold feet.

OpenAI and Anthropic (Claude.ai father) both filed to go public.

Then watched SpaceX face-plant in slow motion.

Might have given them some second thoughts.

↳ 🟒 OpenAI is now reportedly leaning toward 2027, with Sam "I don't do discounts" Altman refusing to list below a $1 trillion valuation.
↳ πŸ₯‡ Anthropic is still angling to go first. Technically they can list as early as October. But the quick SpaceX draw-down has made the AI-technocrats a wee bit nervous. At least one report has them slipping to 2027 like their twin brother Hansel.
↳ 🎲 The banker pitch to Hansel and Gretel: whoever lists first "defines the industry." Pretty high stakes for a coin flip (maybe it's best to check the Kalshi odds first.)

πŸ’Έ The lesson here is as old as Adam Smith:

Getting in vs. getting in at the right price are two entirely different games.

SpaceX just gave every pre-IPO unicorn a live demonstration of what Mr. Market does to a rich valuation and a thin float.

And suddenly now everyone is Persian. They all want to be fashionably late.


πŸ™οΈ Mamdani kept his word, and froze the rent

In the immortal words of Jimmy McMillan: "The rent is too damn high."

Jimmy spoke (a few decades ago), and Mamdani listened.

He stacked the board (not like FDR, but sort of) appointing 6 of the 9 seats as their terms were up. And turned a campaign slogan, into policy.

The Rent Guidelines Board voted 7-1 to freeze rents on roughly 1 million rent-stabilized apartments* for the next two years.

*Rent-stabilized units are the ones in buildings with 6 or more units, built before 1974.

🏚️Who actually wins and who losses?

Rent freezes tend to be great theater and lousy at maths.

The applause is immediate. The consequences arrive two years later with no press release.

Here's the breakdown:

↳ 🏠 Renters in stabilized units win today. Real money saved. Mamdani kept his word.

↳ πŸ”§ Landlords eat rising insurance, repair, and labor costs against frozen rent. Which usually means slow to fix anything, if at all, and the building quietly becomes a dump over years of negliect.
​
↳ πŸ—οΈ Capital takes the next flight out of dodge. Developers and lenders read an annual freeze as a signal that maths hate them (i.e. they take their money and run.)
​
↳ πŸ’Ό High income earners keep on relocating. The mobile and wealthy (who fund a wildly disproportionate share of NYC's income tax) continue decamping to Florida, Texas, and Tennessee. And because they make up a larger part of the tax base, each one who leaves shifts a heavier load onto people who stays.

🎬 This isn't a New York story. It's a coming-attractions trailer.

When the most-watched mayor in America turns price controls into a victory lap, don't be surprised if the idea tries and make a national tour.


🏠 Housing Corner

Check out what's happened here:

For the first time ever, the number of 6%+ mortgages is more than 3% mortgages. And the spread is only going to get wider from here.

The rest of housing corner:
​

πŸ’Ή

Interest Rates


6.87%

🏑 🏑 🏑
Inventory


844,011

🧊

Days on Market


63 days

Here's a quick list of the housing stats over the last 1 weeks:
​
🏠 Mortgage rates: 6.87% (up a few bps)
πŸ“ˆ Inventory: 844,011 homes (up sellers, less buyers)
πŸ“‰ Price reductions? 39.57% (more people lowering their prices)
πŸ’° Median list price? $449,900 (same)
πŸ•°οΈ Median days on market? 63 (longer on the market).

​

Market Highlights - YTD

Tech and S&P are up


~ S&P 500 $7,515 (+0.72%)

~ Nasdaq $25,873 (+0.61%)

BTC, Gold, & Silver still buggin'


~ Gold $4,009 (-2.44%)

~ BTC $61,982 (-1.17%)

~ Silver $57.98 (-3.51%)

​

🚨Upcoming Tax Deadlines you should be aware of:
​
πŸ—“July

  • July 31st - 5500 Pension Tax Returns Due.
  • Your 401k company handles that, unless you have a solo 401k

πŸ—“Aug

  • Nothing. You cool.

πŸ—“Sept

  • Sept. 15th - 3rd Quarter Estimated Tax Due
  • Sept 15th - S-Corporation and LLC partnership Tax Returns Due
​

What's been going on with your Favorite CPA

​

Dmitry and I won an IRS Audit last week regarding QSBS.

They tried to say tax, we said no-tax. We won!

IRS 0; IRS-Resolution-Services 1

Once again, if you know anyone with IRS issues, please send them to our website.


I know I've been lagging with the newsletters, what can I say, the weather in Boise is way too nice.

Talk to you guys a in few weeks

Romeo Razi, CPA

​Taxedright.com​

​

600 1st Ave, Ste 330 PMB 92768, Seattle, WA 98104-2246
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