Posted on 03/10/2022 6:26:30 AM PST by vespa300
Exactly. Flipping houses is a business, with costs and revenues, and people in this business pay taxes based on the laws governing such a business. They don’t pay capital gains taxes, they pay profit taxes. Unless they’re cheating and claiming the flipped house as a primary residence, but that’s a different enforcement issue. I don’t see how house flippers are hurting the housing market. They are making improvements, and raising the cost of that house, but they are also taking risks and providing liquidity to the market. And creating jobs, too.
One more step towards the total control of private property by the government: the ultimate goal of communism.
What about military?
“Didn’t Californians moving to Colorado pretty much ruin Colorado? That’s what people say.”
That happened in the 1990’s. Yes, they came and took over like locusts. Lots of liberal idiots from Chicago, too.
That normally would be a capital gains tax. What is the state long term and short term capital gains rate?
In addition, if the flippers don’t exist, then homeowners will buy the house but fix it up slower reducing income for remodelers and property tax flows.
Maybe 0.1%. The other 99.9% of the housing crisis in California and other blue states is because of the laws that state law makers make, restricting the supply of housing.
Drying up the housing supply even more by causing flippers to bide their time, this is likely to make the housing crisis even worse.
How do they determine who is a flipper? Is this gross or net profit? What about military people and the like buy and sell frequently? If you inherit a home and sell it that could well be under 3 years and called 100% profit.
Yep. just another item to add to the flippers “model.”
Democrats don’t get that everything is modeled. They don’t even get that corporations pay no taxes. They merely collect taxes and pass them through. And taxes is an item in their pricing model. Raise the tax, they just raise that field in the model.
Idiots like Warren. Fools.
There's a name for that. It's called Capitalism. Of course, the Democrats want to tax it out of existence.
Fine by me. I’ve rebuilt 2 and still own them after 4+ years. Might even raise my value as it takes more of them off the market. Californians get what they deserve.
Aren't they buying distressed homes or foreclosed homes at auction and repairing them or modernizing them and then making housing available on the market that otherwise would not be there?
-PJ
So, under this law (if AZ did the same) would the state rake in $100K (rounding off)?
And the band played on...
Of course the unintended consequence of their greedy grab will be to kill the industry. Instead, homes will remain in states of relative dis-repair. No incentive to improve a home, then bring in a higher income family.
Oh sure, the greedy {censored} will justify their money grubbing policies as attempts to keep homes affordable. How about this, instead of enacting policies that enable, encourage, even cause people to remain in lower income brackets and live in ah "less desirable" conditions...How about policies that actually help people achieve success so they can afford a nicer home, nicer neighborhood? Of course a leftist isn't really about making things better for anyone but themselves.
Ultimately government wants to control housing and dictate where people will live.
“Flipping houses = Hard work and free enterprise.”
I’ve been watching a show with my wife about these guys in Detroit who are fixing up “hopeless”, modest homes in Detroit for lower income buyers while making enough money to scrape by - a far cry from the other shows like this. And I was thinking about just how much good they are doing in the world while wondering if I’ve actually done any good in it.
Of course, in California, this sort of effort MUST BE STOPPED.
Gotta pay for those illegals lobsters, medical care and cash payments for breaking laws here.
Flippers will buy houses, remodel them and then do a rent/buy contract stretching long enough to avoid the tax. They will split the saved tax with the rent/buy customer.
When I sold we cut a deal: I set a price (higher than he recommended) telling him that if it sells at that price he gets his full 3%. If it goes for less, his share is cut to 2%. If it goes for over asking price, he gets 4%.
It sold for 10% over asking price. This occurred 8 years ago, when the market was flat and just starting to turn.
Of course members of “The Big Club” are not required to pay the tax.
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