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You can sell your home whenever you like. Taxes you pay are the price you pay to live in a civilized society.
I have no problem paying taxes...I had a great income when I worked and my partner was a Sub S corp. with his successful contracting business; we paid at or near the highest tax rate. We continue to pay high taxes in retirement (retired at age 50) as I have a generous pension and my partner has taxable 401's and IRAs. We pay tax on 85% of our SS due to our income level from other sources.
What I do have a problem with is the abrupt change in this tax law. We bought a FL home in 2014 so that we could be near my FIL who was in failing health (both physically and mentally). No one had any idea how much longer he would live, but my husband wanted to keep his Dad in his home as that was his Dad's wishes. It wasn't easy but we did it. Unfortunately his Dad died in late 2015 at age 91+. My husband was both successor trustee and executor and the estate took a year+ to settle.
We have no reason or desire to stay in FL since my FIL deceased. We had every reason to believe the tax code on the 2 year out of 5 year rule would not be pulled out from under us. There is NO way we can list, sell and settle on this house in the next 35 days until 12/31/2017. Instead we are faced with a large capital gain (AND much higher Medicare premiums which are based on our income) if we sell prior to mid-2019.
It is this surprise!! change to the tax code with very little notice that I object to.
Last edited by dothetwist; 11-25-2017 at 11:27 AM..
Mo "smart" investor buying rental property is wasting a dollar much less 100k renovating a house that a coat of paint can prep
People buying to flip for a business treat it like a business
C corp usually has better protections legally
If they throw too much money into a flip or rental prep they lose
Maybecsome here watch too much HGTV or Bravo RE reality tv
I have no problem paying taxes...I had a great income when I worked and my partner was a Sub S corp. with his successful contracting business. We continue to pay high taxes in retirement (retired at age 50) as I have a generous pension and my partner has taxable 401's and IRAs. We pay tax on 85% of our SS due to our income level from other sources.
What I do have a problem with is the abrupt change in this tax law. We bought a FL home in 2014 so that we could be near my FIL who was in failing health (both physically and mentally). No one had any idea how much longer he would live, but my husband wanted to keep his Dad in his home as that was his Dad's wishes. It wasn't easy but we did it. Unfortunately his Dad died in late 2015 at age 91+. My husband was both successor trustee and executor and the estate took a year+ to settle.
We have no reason or desire to stay in FL since my FIL deceased. We had every reason to believe the tax code on the 2 year out of 5 year rule would not be pulled out from under us. There is NO way we can list, sell and settle on this house in the next 35 days until 12/31/2017. Instead we are faced with a large capital gain (AND much higher Medicare premiums which are based on our income) if we sell prior to mid-2019.
It is this surprise!! change to the tax code with very little notice that I object to.
I am sorry to hear the passing of your FIL, and I'm sure the toll of the loss only added more hardship to your circumstances.
It sounds like you both have good heads on your shoulders though, and hopefully, like my family will be okay through all of this as well.
It's hard for me to imagine how much my risk of buying a new property just went up, a month after the purchase of our new home.
The entire scenario has a bit more sting when I stop to think that we could have listed late this summer, and probably have missed the entire rug pulling event. But we decided to refrain from selling until spring. It put us at greater risk as we went into debt in order to buy, and there's no way I would have bought the level of house I did, (not to mention the costs of carry two homes simultaneously!) had I known the exemption was about to come to an abrupt end.
You know, I think the difference between us and probably hundreds of thousands, if not millions of others just like us, is that we actually know what's getting ready to happen. While the rest of the world pretty much appears clueless at this point.
No one's really talking about it in the news. Sure they're discussing the tax bill, but not this specific article anywhere that I'm seeing.
I've written probably half of the Republican Senators by now, explaining my (our) cases and haven't heard a peep back yet. Half the Fox News has gotten emails from me as well, and same thing- all cricket farts.
I contacted those GOP Senators who already have misgivings on the tax bill. I also contacted my FL GOP Senator Rubio because I think this and other real estate changes to federal taxes will hurt FL real estate (no more interest deducts on a 2nd home of which there are many 2nd homes in FL). But I see little hope that Rubio will change from a yes to a no vote.
Yes, this amendment has gotten little play in the media. But I am a subscriber to the NY Times and WaPo online and both mentioned it. WaPo went into detail as the DC-Metro market is and has been hot hot hot for a long time. We lived in there during our careers, and again, in the early years of our marriage when we struggled financially while we built our career/business, our only option was to buy a less than desirable house in a less than desirable neighborhood, do some light DIY remodels and trade-up to get into a better home/neighborhood. Most of our siblings did the same thing not just in DC but in Pennsylvania, Massachusetts, Ohio.
Mo "smart" investor buying rental property is wasting a dollar much less 100k renovating a house that a coat of paint can prep
People buying to flip for a business treat it like a business
C corp usually has better protections legally
If they throw too much money into a flip or rental prep they lose
Maybecsome here watch too much HGTV or Bravo RE reality tv
Sure, I shouldn't have used the term wise.
I am by no means a wise investor, I'm just a hard worker that sometimes gets paid.
I just meant that people who know how to get houses ready to sale for a market premium, often destroy very expensive items to get the look and price they are after.
I just ripped out probably $3500 in countertops that the previous owner installed new last year. The reason was because they were solid surface that actually looked like cat puke! If the market holds up, and (if I ever sell now) I fully expect to make back double or triple the cost of the new counter if not more. I have doubts that we'd ever see a dime back had we kept the original that the last owner picked. These items continue down the line.
New appliances, new floors, new roof, new everything.
Buying troubled properties and Selling people great homes is just pretty much what I do, or at least did
Now it looks like I'll be putting on my landlord hat.
Every old cabinet gets painted from now on. Every toilet gets scrubbed and re-used after this new bill passes. My buying and selling days are probably over for good.
I'll likely be buying most of my homes at sheriff auctions or fsbo's too.
And I get the feeling this is going to be where many RE investors will be venturing. Get ready to clean up kitty s*** from the carpets boys and girls, cause the gravy train just went foul.
Mo "smart" investor buying rental property is wasting a dollar much less 100k renovating a house that a coat of paint can prep
People buying to flip for a business treat it like a business
C corp usually has better protections legally
If they throw too much money into a flip or rental prep they lose
Maybecsome here watch too much HGTV or Bravo RE reality tv
I'm sorry but I'm not sure your "coat of paint" will cure many of the problems that I cure (cured) for a living.
There's no way I'd take on the risk of buying a house, thinking that just a coat of paint could make me enough profit to justify taking on the risk of buying and selling. Sure I may see an occasional property that has that potential, but by far the most properties I've seen and experienced have many other issues than paint color. And I've done well enough filling up dumpsters and doing complete reno's.
You'd have to admit that even your coat of paint trick costs time and money just because you didn't agree with the previous color.
EDIT: I also believe the act you are describing of buying/painting/and selling is what is known as a "lipstick" on HGTV, and other flip shows, so yeah, maybe too many people do have the time to watch those channels too much.
Last edited by riggy_house; 11-25-2017 at 12:50 PM..
Kind of ironic with the crisis in housing that it is always in the news in one form or another... just can't ever seem to get it right or better said, "Please everybody"
Large swaths of my city had been written off and as a child there was one program after another to stimulate demand.
Well, guess what...?
After decades the demand is here without any special incentives and now a viable way to to move forward without taxpayer monies is being monkeyed with...
Home after home around here have been gutted to the studs and rebuilt... amazing the work and the resulting product keeping in mind no one can force anyone to buy the finished product...
Deficient homes languished for decades because they do not qualify condition wise for conventional mortgages... someone comes in and makes the repairs and now the do and bringing another family into ownership.
I'm sorry but I'm not sure your "coat of paint" will cure many of the problems that I cure (cured) for a living.
There's no way I'd take on the risk of buying a house, thinking that just a coat of paint could make me enough profit to justify taking on the risk of buying and selling. Sure I may see an occasional property that has that potential, but by far the most properties I've seen and experienced have many other issues than paint color. And I've done well enough filling up dumpsters and doing complete reno's.
You'd have to admit that even your coat of paint trick costs time and money just because you didn't agree with the previous color.
EDIT: I also believe the act you are describing of buying/painting/and selling is what is known as a "lipstick" on HGTV, and other flip shows, so yeah, maybe too many people do have the time to watch those channels too much.
I admit I have Chip and Jo Jo on playing in the background. I decided to take day off, writing senators and hanging out with you guys- yay!
I really love their show too btw! And they overall, I think produce more tasteful reno's than the Property Bros IMHO.
It's crazy though how they always just so happen to have about $1500 left over in the budget, so that they can offer their clients 3 options to choose from, which ultimately always gives the property just the accent that really sets the property off!
What kind of dumb luck that it would happen every single time? I hope their future clients don't come to expect that sort of thing, as they'll probably be disappointed the one time it doesn't work out.
Kind of ironic with the crisis in housing that it is always in the news in one form or another... just can't ever seem to get it right or better said, "Please everybody"
Large swaths of my city had been written off and as a child there was one program after another to stimulate demand.
Well, guess what...?
After decades the demand is here without any special incentives and now a viable way to to move forward without taxpayer monies is being monkeyed with...
Home after home around here have been gutted to the studs and rebuilt... amazing the work and the resulting product keeping in mind no one can force anyone to buy the finished product...
Deficient homes languished for decades because they do not qualify condition wise for conventional mortgages... someone comes in and makes the repairs and now the do and bringing another family into ownership.
Sorry if I sometimes have a hard time making out some of your posts, but I always feel like I'm being endowed with wisdom, in which the true knowledge is still yet cloaked behind a swaying veil of carefulness
On a serious note however, I wonder, just how much of the reno's and demand you speak of that has come about in recent decades, has been due to the current 2 of 5 yr tax break (that I believe another poster mentioned that was implemented 20 years or so back), which has allowed a multitude of buyers and sellers, like me, who otherwise would struggle to make a living buying and selling, to actually enter the game?
And, How much of that business that you are describing will now go away as a result of this tax bill?
That really is the million dollar question for many I think- even for the supporters who are silently (or mostly silently) reading while p**ping in their undies due to the potential ramifications this thing will have on them.
I contacted those GOP Senators who already have misgivings on the tax bill. I also contacted my FL GOP Senator Rubio because I think this and other real estate changes to federal taxes will hurt FL real estate (no more interest deducts on a 2nd home of which there are many 2nd homes in FL). But I see little hope that Rubio will change from a yes to a no vote.
Yes, this amendment has gotten little play in the media. But I am a subscriber to the NY Times and WaPo online and both mentioned it. WaPo went into detail as the DC-Metro market is and has been hot hot hot for a long time. We lived in there during our careers, and again, in the early years of our marriage when we struggled financially while we built our career/business, our only option was to buy a less than desirable house in a less than desirable neighborhood, do some light DIY remodels and trade-up to get into a better home/neighborhood. Most of our siblings did the same thing not just in DC but in Pennsylvania, Massachusetts, Ohio.
Hey, at least Senator Rubio heard from at least two people who is being screwed by this new plan.
I kind of think Marco is the perfect guy to kill this thing. He has nothing to lose, nothing to gain, everything to lose, or everything to gain. It all just depends on how he handles the information given to him.
If he explains his position well, as hopefully we have, and it gives him the limelight to show his voters that he is in all reality protecting them from the extremely harmful side effects this bill would have to our economies, which would be smashed broadside if this bill gets passed as-is.
This one article must be addressed, if nothing else, for it has the potential to all but shut markets down completely. Believe me, I've never been a gloom and doomer, and have been quite the optimistic investor right up until a few days ago before I caught this thread.
This is going to be a donkey kick to the groins of our society, and many people will die bloody deaths on the streets as a consequence. No BS! Get ready for it.
I hope others in here send Senator Rubio a message, and convinces him to be the hero who will save us all from this Taxastrophe (New buzz phrase for this issue? )
Not only will it give him a better shot at prez next run, but it will undoubtedly help him to secure his current seat, and in the television's spotlight.
Last edited by riggy_house; 11-25-2017 at 03:25 PM..
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