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Northstar1989 t1_iy4mvm2 wrote

>Near where I live many retirees from middle class jobs in NYC move here and live like kings off pensions and the value their apartments sold for.

Boomers who already helped to pull up the ladder to prosperity behind them (supporting conservative politicians who slashed state support to state universities in the late 70's and early 80's, leading to a nationwide explosion in tuition prices, for instance...)

Do they really need more money?

Or perhaps, we should tax those sales more (Capital Gains taxes apply to home sales, I believe? Hard to recall rn, tired and have Post-Covid Syndrome brain fog) and use the money to incentive local communities to relax their zoning laws instead?

(Was part of Elizabeth Warren's housing plan for if she had been elected, actually: offer grants to communities they can receive for relaxing zoning laws, targeted to the areas with the strongest jobs markets and highest housing prices, as the high prices are a market indicator of a local housing shortage...)


Hodgkisl t1_iy4ogwx wrote

Capital gains does not apply up to 500k if gain for a married couple to primary residence sales if a replacement home is purchased.

Edit: looks like you no longer must buy a new home, any primary residence sale is eligible if you lived in it for 2 years.


Northstar1989 t1_iy4ox3a wrote

If there's a difference in prices, due to moving to a cheaper area?


Hodgkisl t1_iy4pr0u wrote

Please see my edit, you no longer must buy a new home for primary residence sale. I believe you used to have to buy another.

Also fun is with investment property you can 1031 exchange and avoid any amount of capital gains indefinitely.


Northstar1989 t1_iy6z92p wrote

That's.... problematic.

Clearly we need to fix those tax laws so millionaires with 5 investment properties can't avoid taxes forever


Hodgkisl t1_iy7q18z wrote

The 1031 exchange has helped many become rich, its a huge distortion in the real estate market.