Posted on 07/23/2025 2:34:34 PM PDT by JV3MRC
Why pay higher prices in a more competitive housing market when you can just keep paying compulsory taxes on your capital gains? That’s effectively the head-scratching argument CNN tried to make to ding President Trump’s tax-cutting agenda.
Yeah, we couldn’t really make sense of that logic either.
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Bass Ackwards?
You beat me to it. I was “forced” (strongly encouraged) to do a 1031 exchange, thereby selling a property and upscaling to two others, shielding my investment which I’ll hold on to as long as possible to avoid CG.
Instead of freezing the property taxes, file a form 50-126 for Texas, at the county level, to defer the taxes.
You stop paying taxes at all, and the property taxes continue as a lien on the property until it is sold - presumably when you and the missus pass.
You do it for cash flow reasons. No one likes a lien on the property for 20 years, but depending on Gov Abbott’s new property tax proposal it may be an extra step in a plan.
You have to decide whether you think encouraging individual home ownership is a good thing, a traditional means of acquiring wealth. Or should we all be renters.
It would probably lower California & Austin, Texas home prices, but prices in most other places might rise.
“How many couples have more than $500,000 appreciation in their home?”
My guess is around 4 million.
How many can afford to buy houses that have appreciated more than $500,000 since last sale?
How would it increase the home prices? Because those of us with large gains would sell our homes…but we need somewhere else to live. Normally, you would “buy down.” But there is almost no inventory. It would drive up THOSE prices considerably.
The only thing that is going to cure the housing prices is the death of the baby boomers. (And I am one of them.). That would free up inventory without putting pressure on the smaller homes.
Putting the heavy thumb on investment in big houses, paid for by other taxpayers, ain’t a good strategy for anything. If home ownership is a good thing, and it is, it will be accomplished without Uncle Sam’s coinvestment—or “encouragement” in your language.
Californians legally in the USA wanting affordable housing should demand Californian governments assist ICE in invader removal.
Removing one million Los Angeles invaders will do more to lower housing costs in LA than having a few thousand people put their $500,000+ houses on the market.
Pretty stupid Beavis!
The most effective way to lower housing prices in expensive areas is to shut down area airports.
People with money will typically refuse to buy a house in such an area.
I want to fly out of LA.
No can do, Tijuana is your best choice.
“Putting the heavy thumb on investment in big houses, paid for by other taxpayers, ain’t a good strategy for anything. If home ownership is a good thing, and it is, it will be accomplished without Uncle Sam’s coinvestment—or “encouragement” in your language.”
In the UK and Australia, there is no mortgage interest deduction allowed for resident homeowners, yet they have expensive housing prices.
“How many can afford to buy houses that have appreciated more than $500,000 since last sale?”
My guess is around 100,000.
“Lower the mortgage deduction to $200k-one time only. That will lower prices.”
I think the person means that mortgage interest deductions should be limited to a maximum of $200,000 over a lifetime.
Only six of the twenty or so houses on my Florida street are owned by baby boomers.
One of the six has a real estate sign in front. His daughter lives there. He intends to buy a place in north Georgia.
I’m 66. I hope to be around for another 30 years.
I’m not selling because I don’t have to carry homeowners insurance on my Florida single family home.
In much of Europe, kids typically grow up in apartments. Daddy doesn’t spend Saturday doing yard work.
When the time comes, I’ll have my landscaping cut way back, if I can’t do it myself.
I now have a checkbook so I can pay tradesmen if need be.
Let’s make housing cheaper:
2025 - $500,000
2026 - $480,000
2027 - $440,000
2028 - $400,000
2029 - $370,000
2030 - $350,000
2031 - $335,000
You’re not going to want to buy a house even if you could.
“That is a hard no. My house is paid off. In a short time, I will be able to freeze my property taxes (hitting 65).”
Only school taxes.
When I lived in Texas we had a bunch of different “property” taxes.
UNLESS THERE HAVE BEEN RECENT CHANGES:
IF YOU ARE SELLING A HOUSE THAT IS YOUR MAIN RESIDENCE-—NOT A VACATION OR 2ND HOME:
IF YOU HAVE LIVED IN THAT PROPERTY FOR AT LEAST 2 YEARS & ONE DAY SINCE CLOSING ESCROW:
IF YOU ARE A MARRIED COUPLE & HOUSE IS IN BOTH NAMES:
THE FIRST $500,000 OF CAPITAL GAIN IS EXEMPT FROM TAXES.
IF YOU HAVE GAIN OF $505,000-—YOU ONLY OWE CAPITAL GAINS ON $5,000.
IF YOU ARE A SINGLE HOMEOWNER—THE EXEMPT AMOUNT IS $250,000.
I SOLD A PROPERTY IN 2004 & MY CAPITAL GAIN-—SALE PRICE MINUS BASIS (original price) & ALL CLOSING COSTS & SPRUCE UP COSTS==CAPITAL GAIN. IT WAS UNDER $250,000. I USED THAT PROFIT TO BUY CURRENT PROPERTY FOR CASH. NO MORTGAGE.
TRUMP IS TALKING ABOUT ENDING CAPITAL GAINS ON PRIMARY RESIDENCES.
CHECK WITH A CPA.
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