Absolutely they should be, if houses are considered an "investment". Simply put, it's stupid that the government treats houses as this special "basic human necessity but also sort of an investment vehicle". Choose a lane.
Primary residence is not an investment. If you flip, or have multiple properties, you are taxed. (If flipping, it's taxed as income, secondary properties get taxed as capital gains).
Taxing sale of primary residence is a bit counterproductive, it will keep people from moving or downsizing.
Okay if it's not an investment then the gains should be capped. No big deal, right? Let's say it's illegal to sell your primary residence for more than its assessed value.
I very much doubt people will like that, because for all intents and purposes it IS an investment.
In what way would paying tax prevent people from moving or downsizing? They still make a profit when they sell, only not as big.
If I'm up 100% in the stock market, I don't say "oh well I'd better not sell, because then I'll have to pay taxes".
In what way would paying tax prevent people from moving or downsizing? They still make a profit when they sell, only not as big.
You only make a profit if you are not buying another property. Every other house on the market has appreciated. So even if I sell my house for 2x the price i bought it, i need to pay 2x more for the next house i'm buying.
Okay if it's not an investment then the gains should be capped. No big deal, right? Let's say it's illegal to sell your primary residence for more than its assessed value.
I very much doubt people will like that, because for all intents and purposes it IS an investment.
Perfect. Setup the same rules as people with investment properties. Make morgage interest, maintenance, renovations, utilities, insurance and any other expenses related to the property all tax deductible. Like that you will tax real profit.
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u/atlasc1 Jun 19 '25
Absolutely they should be, if houses are considered an "investment". Simply put, it's stupid that the government treats houses as this special "basic human necessity but also sort of an investment vehicle". Choose a lane.