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The one that confuses me is AB 71. Aren't 2nd and 3rd homes basically rental stock? Owned by individuals and not the Irving Company if you care about that.
by m-j-fox 9y ago
The one that confuses me is AB 71. Aren't 2nd and 3rd homes basically rental stock? Owned by individuals and not the Irving Company if you care about that.
- kevinburke 9y agoA house in Tahoe you use 3 weeks a year is not really rental stock, and it's not clear what benefit the public gets from your 2nd home that would justify a tax subsidy
- epistasis 9y agoWith VRBO and other sharing apps, yes that house in Tahoe is rental stock.
- zorpner 9y agoShort-term rentals aren't housing.
- epistasis 9y agoYes, they are, but short-term, and it takes longer-term housing off the market. This is ravaging the housing markets of many mountain villages. Re-reading the comment I was originally replying to, the commenter might have meant that the 2nd home didn't justify a tax deduction, which I would most definitely agree with. A 2nd home is an investment, and there should be no tax incentives on that sort of investment.
- hkmurakami 9y agoWell in the states, a first home is already often a person's biggest investment.
- m-j-fox 9y agoSure, but in silicon valley one thing to do with your smalltime IPO winnings is buy a house and rent out your old one to someone who has yet to hit paydirt. Maybe part of what pushes prices up, but I like to think my renters are getting a better deal than they would from old-man Irvine. (The incentives to play this game are razor-thin, mostly down to tax advantages.)