Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

New California bill would impose 25% gain tax on house flippers who sell within 3 years
ABC 10 News ^ | 3/8/2022 | LaMonica Peters

Posted on 03/10/2022 6:26:30 AM PST by vespa300

A state law maker from San Diego says short-term investors are contributing to the housing crisis. Now he’s introduced a Bill he says will give average people a chance to own a home again.

Flipping houses is nothing new. You purchase a property, make necessary changes and then sell it for a profit.

(Excerpt) Read more at abc10.com ...


TOPICS: Front Page News; Government; News/Current Events; Politics/Elections; US: California
KEYWORDS: california; californiathievin; flippers
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-80 ... 101-120 next last
To: Mr.Unique

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.


21 posted on 03/10/2022 6:35:03 AM PST by babble-on
[ Post Reply | Private Reply | To 3 | View Replies]

To: vespa300

One more step towards the total control of private property by the government: the ultimate goal of communism.


22 posted on 03/10/2022 6:35:06 AM PST by I want the USA back (Government is to be feared much more than the chicom virus.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Lockbox

What about military?


23 posted on 03/10/2022 6:35:35 AM PST by PrincessB
[ Post Reply | Private Reply | To 18 | View Replies]

To: vespa300

“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.


24 posted on 03/10/2022 6:36:03 AM PST by CodeToad (Arm up! They Have!)
[ Post Reply | Private Reply | To 19 | View Replies]

To: vespa300

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.


25 posted on 03/10/2022 6:36:31 AM PST by alternatives? (The only reason to have an army is to defend your borders.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: vespa300
A state law maker from San Diego says short-term investors are contributing to the housing crisis.

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.

26 posted on 03/10/2022 6:37:33 AM PST by Sooth2222 (“Toute nation a le gouvernement qu’elle mérite.” ("Every nation has the government it deserves.”) )
[ Post Reply | Private Reply | To 1 | View Replies]

To: vespa300

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.


27 posted on 03/10/2022 6:37:41 AM PST by rey
[ Post Reply | Private Reply | To 1 | View Replies]

To: Yo-Yo

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.


28 posted on 03/10/2022 6:38:01 AM PST by vespa300
[ Post Reply | Private Reply | To 13 | View Replies]

To: vespa300
"You purchase a property, make necessary changes and then sell it for a profit."

There's a name for that. It's called Capitalism. Of course, the Democrats want to tax it out of existence.

29 posted on 03/10/2022 6:38:30 AM PST by norwaypinesavage (Capitalism is what happens when you leave people alone.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: alternatives?

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.


30 posted on 03/10/2022 6:38:30 AM PST by DIRTYSECRET (S)
[ Post Reply | Private Reply | To 25 | View Replies]

To: vespa300
Aren't "house flippers" providing a service?

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

31 posted on 03/10/2022 6:40:23 AM PST by Political Junkie Too ( * LAAP = Left-wing Activist Agitprop Press (formerly known as the MSM))
[ Post Reply | Private Reply | To 1 | View Replies]

To: vespa300
Here in AZ, I was making small talk at my granddaughter's birthday party with the father of one of the kids. He is a developer and flips houses for a living. He mentioned that he bought a 1.5-acre lot in Phoenix, 18 months ago. In response to a question, he stated that he paid $390,000 for an empty lot with plans to build apartments. He later said he decided not to build but sold it recently for...................... $790,000. WOW!!!!

So, under this law (if AZ did the same) would the state rake in $100K (rounding off)?

32 posted on 03/10/2022 6:40:42 AM PST by Michael.SF. (Never do anything illegal, when you are doing something illegal. )
[ Post Reply | Private Reply | To 1 | View Replies]

To: brookwood
Taxes solve all problems.

And the band played on...

33 posted on 03/10/2022 6:40:56 AM PST by dfwgator (Endut! Hoch Hech!)
[ Post Reply | Private Reply | To 6 | View Replies]

To: vespa300
Leftists: "Hey look, someone has found a way to make money, let's take a big chunk of that!"

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.

34 posted on 03/10/2022 6:41:01 AM PST by ThunderSleeps (Vaccine mandates: they are not about health, they are about obedience.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: skeeter

Ultimately government wants to control housing and dictate where people will live.


35 posted on 03/10/2022 6:41:35 AM PST by dfwgator (Endut! Hoch Hech!)
[ Post Reply | Private Reply | To 14 | View Replies]

To: Michael.SF.

“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.


36 posted on 03/10/2022 6:41:40 AM PST by The Antiyuppie (When small men cast long shadows, then it is very late in the day.)
[ Post Reply | Private Reply | To 10 | View Replies]

To: vespa300

Gotta pay for those illegals lobsters, medical care and cash payments for breaking laws here.


37 posted on 03/10/2022 6:44:00 AM PST by Cowgirl of Justice
[ Post Reply | Private Reply | To 1 | View Replies]

To: CodeToad

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.


38 posted on 03/10/2022 6:45:17 AM PST by SaxxonWoods (The only way to secure your own future is to create it yourself.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: skeeter
The 6% fee is negotiable and is split between the agents at 3% each.

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.

39 posted on 03/10/2022 6:46:14 AM PST by Michael.SF. (Never do anything illegal, when you are doing something illegal. )
[ Post Reply | Private Reply | To 14 | View Replies]

To: SaxxonWoods

Of course members of “The Big Club” are not required to pay the tax.


40 posted on 03/10/2022 6:46:38 AM PST by dfwgator (Endut! Hoch Hech!)
[ Post Reply | Private Reply | To 38 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-80 ... 101-120 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson