Jenna_Rein t1_j6fujbc wrote on January 30, 2023 at 1:02 AM

Also, the US tax code is designed to progressive tax the increase of wealth regardless of the source.

Megalocerus t1_j6gu8q8 wrote on January 30, 2023 at 5:33 AM

No, your house or stock can increase in value, changing your net worth, but it is not taxable until you sell it.

Randomstringofnum t1_j6gwjzd wrote on January 30, 2023 at 5:58 AM

Wrong, when a home increases in value, so does it’s assessed price, assessments determine the value of the home, and property taxes are based on this value, a higher assessment means a higher tax bill.

markroth69 t1_j6h8ecp wrote on January 30, 2023 at 8:26 AM

But that's local property taxes. Not federal income taxes. The U.S (federal) (Income) tax code does not progressively tax wealth. It progressively taxes income.

Jenna_Rein t1_j6ifsdo wrote on January 30, 2023 at 3:49 PM

Literally, what I said…you are taxed on the increase in your wealth, at some point.

However, specifically the increase in home values has an exempted amount - 250,000/500,000 based on filing status and ownership tests, is excluded before capital gains hit.

Megalocerus t1_j6lhskh wrote on January 31, 2023 at 4:06 AM

No, it's not true at all. You are taxed on income, not the increase in wealth. I can have my wealth plummet due to a stock market drop, but owe taxes on my interest income even as my wealth drops. I can go into debt on my $100K income so my wealth is negative, but I still owe taxes on the $100K. Wealth has nothing to do with it except maybe if I die with more than 11 million, and then it is the change of ownership that is taxed--a kind of transaction.