I wonder how much the
Capital Gains tax will be on this transaction.??
The property taxes are based on Prop 13, which in Los Angeles amounts to about 1.25% of the sale price....Which works out to about $2,062,500 in the first year.
Commissions at 6% are $9,900,000.
He won’t pay a 6% commission.
He can pay property tax for the next 100 years, in advance, and not even feel it.
The possibility of getting to be very rich indeed is necessary for capitalism to generate the jobs and goodies the rest of us want. That said, there are social and political risks in allowing wealth so vast that it makes ordinary billionaires look like teenagers on an allowance.
Society needs these people, but needs to be protected from them, too.