One possible (small) solution to housing (let homeowner write off lost after selling)

[elflord1973]

Originally Posted by boocake

I think the main issue here is that it feels unfair to me as a homeowner that someone can deduct a loss on stocks and other investments, but I can't on my primary home. Why?

Because you pay capital gains tax on stocks, but not on your primary residence.

To discourage people from looking at their house as an investment in addition to a place of residence? That will never happen.

If it's an "investment", then they should pay the same taxes as on other investments. Also, if it's an "investment", then it's their responsibility when they lose money on it.

[elflord1973]

Originally Posted by aneftp

No there are real people who bring this type of money to the table. I am moving into a neighborhood in Florida. The home I was about to buy, the homeowners had to bring almost 160K to the table. They purchased at "peak" for 820k, put in another 50K in home additions. Now they are selling for 620K. Counting real estate commissions (5%), they are losing a lot of money. This was their primary home.

So losing over 250K is not funny to these people. This was not a short sale. These people were responsible, put a 20% downpayment and still lost a ton of money.

As much as I feel badly for them, if they could afford a 20% down payment on an 820k home, I don't think they need me (or other renters) to bail them out.

I don't know whether or not these people are "responsible". If they are responsible, then I presume they will accept responsibility for *their* bad investment instead of wanting to impose the tab on the tax payer.