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

Skip to comments.

HR 3648: Changing the Capital Gains Tax Exemption (Housing)
nuwireinvestor ^ | 10/16/2007 | Cali Zimmerman

Posted on 10/23/2007 3:08:44 PM PDT by taildragger

When 2008 rolls around, investors who anticipated a capital gains tax exemption on the sale of their investment real estate may run across a kink in their plans. HR 3648, a bill working its way through Congress, would alter the requirements for exemption on primary residences so that many investment properties will no longer qualify, leaving investors to pay a capital gains tax from which they would previously have been exempt.

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


TOPICS: Business/Economy; Extended News; Government; News/Current Events
KEYWORDS: 110th; budgetdeficit; capitalgains; housing; hr3648; taxcode; taxes
Folks, this is bigger than we think. Bob Brinker talked about this on this show this past weekend. To my knowledge, no one in the "New-Media" has mentioned this, and many Republican's in the House, went along with it.
1 posted on 10/23/2007 3:08:46 PM PDT by taildragger
[ Post Reply | Private Reply | View Replies]

To: taildragger
The way I understand it is, if you lived in the home less than 5 years, your Cap Gains, ($500,000 exemption on a home, married filing jointly) would be prorated via a percentage as to the amount of time it was your actual residence vs. your transition.

I see this as really going after Boomer's and Retiree's that change houses every couple of years.

2 posted on 10/23/2007 3:14:59 PM PDT by taildragger
[ Post Reply | Private Reply | To 1 | View Replies]

To: taildragger

bookmark


3 posted on 10/23/2007 3:16:50 PM PDT by GOP Poet
[ Post Reply | Private Reply | To 1 | View Replies]

To: GOP Poet

BTTT


4 posted on 10/23/2007 3:20:10 PM PDT by taildragger
[ Post Reply | Private Reply | To 3 | View Replies]

To: taildragger

Without question, this is the biggest break in the entire tax code, so it’s not surprising it should be under attack.


5 posted on 10/23/2007 3:20:51 PM PDT by Attention Surplus Disorder (This post sold by weight, not volume. Content may have settled during shipment.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: taildragger
It's the socialist DemonRATS going after the middle class.
There's nothing that socialists hate more than the middle class of America. They want to tax them into oblivion.
6 posted on 10/23/2007 3:22:19 PM PDT by StormEye
[ Post Reply | Private Reply | To 2 | View Replies]

To: Attention Surplus Disorder
Conversely Larry Kudlow has often noted the disparity between Cap Gains for Securities and Real Estate.

If I am not mistaken, his solution, Make cap gains for securities the same are real-estate!

I.E. the 1st 250k and 500K for single and married respectively tax free.

Interesting Idea....

7 posted on 10/23/2007 3:33:09 PM PDT by taildragger
[ Post Reply | Private Reply | To 5 | View Replies]

To: taildragger
This is only an introduction to the unconstitutional ex-post facto laws we’ll see if the Hildebeast wins.
8 posted on 10/23/2007 3:34:46 PM PDT by Jacquerie (Give unto Caesar when you wish - Vote Fair Tax!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jacquerie
Let us hope the "Supremes" come down 5 to 4 in our favor in regards to the D.C. Gun case.

If not, the left will smell blood in the water, and un-bridled Euro-Socialism will be within their grasp, it is enough to make you shutter.

9 posted on 10/23/2007 3:38:45 PM PDT by taildragger
[ Post Reply | Private Reply | To 8 | View Replies]

To: StormEye
"There's nothing that socialists hate more than the middle class of America. They want to tax them into oblivion."

Karl Marx himself hated the bourgeoisie and considered it the greatest threat to the proletariat and to his communist vision.

Why would anyone expect his disciples in the Democrat Party to differ with him?

Of course Leftists hate the great American middle class and will do anything possible to destroy it. They would love to reduce everyone to the proletariat--everyone except themselves, of course. They would rule everyone else as a privileged oligarchy, exempted from the laws they pass for the rest of us--the Leftist Dream.

10 posted on 10/23/2007 3:44:24 PM PDT by Savage Beast ("History is not just cruel. It is witty." ~Charles Krauthammer)
[ Post Reply | Private Reply | To 6 | View Replies]

To: taildragger

Just when the U.S. housing market falters and threatens the world economy, these geniuses in Washing decide to throw a monkey wrench into it.


11 posted on 10/23/2007 3:47:54 PM PDT by Savage Beast ("History is not just cruel. It is witty." ~Charles Krauthammer)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Savage Beast
SB,

And our "Geldings" are helping to pull this wagon...

Beam me up Scotty.....

Watch a certain property in Chappaqua go up for sale for a flip before this law goes into effect......

12 posted on 10/23/2007 3:51:15 PM PDT by taildragger
[ Post Reply | Private Reply | To 11 | View Replies]

To: taildragger

Remember the days when Visa interest was deductible.


13 posted on 10/23/2007 4:04:09 PM PDT by Sacajaweau ("The Cracker" will be renamed "The Crapper")
[ Post Reply | Private Reply | To 1 | View Replies]

To: taildragger

The Democraps did this back in the 80s and it caused the S&L bankruptcy scam. Huge loses which had to be covered by the taxpayers due to failed S&Ls.

Raise taxes, fund socialism and screw America. Democraps what is so difficult about understanding them.


14 posted on 10/23/2007 4:07:19 PM PDT by Tarpon
[ Post Reply | Private Reply | To 1 | View Replies]

To: taildragger
The best you can say about the Republicans in Washington is that the Democrats are lightyears worse.

When you consider what self-serving slobs these Washington politicians are, the wonder is that the country's not in worse shape than it is.

So much for "the inherent genius of the American people". If the people were smart, they wouldn't send such slobs to Washington in the first place.

And what's really astonishing is that millions of Americans are in overdrive trying to increase the power, reach, and wealth of this self-serving oligarchy that rules over us and the size of their cash cow, the Frankenstein's monster known as the Federal Government, through which they milk the American people of their hard earned money.

15 posted on 10/23/2007 4:08:23 PM PDT by Savage Beast ("History is not just cruel. It is witty." ~Charles Krauthammer)
[ Post Reply | Private Reply | To 12 | View Replies]

To: Tarpon

Better stock up on guns and ammo BEFORE the next election !


16 posted on 10/23/2007 4:33:34 PM PDT by Renegade
[ Post Reply | Private Reply | To 14 | View Replies]

To: taildragger

I am more interested in eliminating taxes on income of all types and instead taxing consumption...then even illegal aliens will be taxed...so will tourists for that matter...


17 posted on 10/23/2007 4:38:58 PM PDT by stefanbatory
[ Post Reply | Private Reply | To 7 | View Replies]

To: taildragger

Oh, that’s perfect. The housing market is tanking, so let’s make it EVEN WORSE. Brilliant. Why do we elect retards? WHY?


18 posted on 10/23/2007 4:42:09 PM PDT by ovrtaxt (My dog has worms, so I named him Scooter.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: taildragger

The people who more or less ended up in debt to the IRS for life at the end of dot com boom as a result of “phantom gains” on exercised options (I know a few do them) are going to be PISSED.


19 posted on 10/23/2007 4:51:28 PM PDT by M. Dodge Thomas (Opinion based on research by an eyewear firm, which surveyed 100 members of a speed dating club.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: M. Dodge Thomas

Don’t tell me, Their homes will be in the same position so they will be “hit” twice in their lives? Please say it isn’t so...


20 posted on 10/23/2007 4:53:11 PM PDT by taildragger
[ Post Reply | Private Reply | To 19 | View Replies]

To: taildragger

Cap gains ARE the same for RE & stocks...the $250K/$500K is the “primary residence exemption”.


21 posted on 10/23/2007 5:02:43 PM PDT by Attention Surplus Disorder (This post sold by weight, not volume. Content may have settled during shipment.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: taildragger

If this report is correct, “phantom gains” from the short sale of a mortgaged property will be exempt from income taxation.

Can’t tell from that article if this is for primary residences only, or all real property - if the latter it will help bail out flippers and developers, and will help clear the market of a lot of distressed “investment” properties.

OTOH, in either case holders of mortgage backed securities will be taking a considerable hit, and a lot of that paper is held by overseas investors, who will NOT be amused.


22 posted on 10/23/2007 5:13:17 PM PDT by M. Dodge Thomas (Opinion based on research by an eyewear firm, which surveyed 100 members of a speed dating club.)
[ Post Reply | Private Reply | To 20 | View Replies]

To: taildragger

The way I understand this is this...

Lots of people defaulting on sub-prime loans. Defaulted loans are taxed as income.

Congress is considering changing this and removing the ‘taxable income’ delineation and letting the loan defaulters off the hook.

They know this will cost a great deal of tax revenue. sooooo, what is their plan?!

Give the pie in the sky home buyers a freebie and once again stick it to the responsible members of society.


23 posted on 10/23/2007 6:24:43 PM PDT by Dad2Angels
[ Post Reply | Private Reply | To 1 | View Replies]

To: StormEye

The middle class?

Please....

If you live in the house for 1 year and sell, you’ll get a prorated amount... so for a married couple, you still get capital gains exclusion of $100,000. How many middle class families have homes that increase in value by $100,000 in a single year? If it increases in value by any amount less than that, they still would pay nothing in capital gains taxes....

From 2004 to 2006, the fastest growing area in median prices was Honolulu, increasing by $170,000 over 2 years.

Meaning the median home in the fastest growing market in the country still would not have been subject to capital gains taxes.

The national median price went from $195.2 to $221.9 in the same period. Meaning nationally, the median home would have been nowhere near having taxable gains.

If the median home is nowhere near experiencing taxable limits, how is it going after the middle class?


24 posted on 10/24/2007 7:49:42 AM PDT by eraser2005
[ Post Reply | Private Reply | To 6 | View Replies]

To: Jacquerie

You said it - remember, her husband was the one that slapped us with the biggest retroactive tax increase in history.


25 posted on 10/24/2007 7:52:29 AM PDT by MrB (You can't reason people out of a position that they didn't use reason to get into in the first place)
[ Post Reply | Private Reply | To 8 | View Replies]

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