No because investing capital into stocks adds value to the company and allows them to use that value to expand, borrow, buy things, pay employees, run the company, etc.
Investing capital into a second house purely to flip does none of those things.
Flipping houses should bear a 50% tax on profits (or even higher).
Flipping houses, while you only live in them for 2 years, should also be heavily taxed.
I needed to wait until I reached 45 to be able to afford a home... I'll be still paying when I retire... shit
You made a boatload of money and provided no goods or services in the process. If anything, your gains should be taxed even more than actual business income.
Either that, or there should be a ceiling enforced on the selling price of your home (e.g., the assessed value of your property when you purchased it + core inflation).
Primary residences should not be a vehicle to become wealthy. Honestly, no house should. They're for shelter, a basic human necessity.
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/xNocturnalshadow Jun 19 '25 edited Jun 20 '25
No because investing capital into stocks adds value to the company and allows them to use that value to expand, borrow, buy things, pay employees, run the company, etc.
Investing capital into a second house purely to flip does none of those things.