Skip to comments.HR 3648: Changing the Capital Gains Tax Exemption (Housing)
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 ...
I see this as really going after Boomer's and Retiree's that change houses every couple of years.
Without question, this is the biggest break in the entire tax code, so it’s not surprising it should be under attack.
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.
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.
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.
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.
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......
Remember the days when Visa interest was deductible.
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.
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.
Better stock up on guns and ammo BEFORE the next election !
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...
Oh, that’s perfect. The housing market is tanking, so let’s make it EVEN WORSE. Brilliant. Why do we elect retards? WHY?
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.
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...
Cap gains ARE the same for RE & stocks...the $250K/$500K is the “primary residence exemption”.
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.
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.
The middle class?
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?
You said it - remember, her husband was the one that slapped us with the biggest retroactive tax increase in history.