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Because,there’s no income until you actually sell. Imagine someone poor, having bought a small house in a sketchy neighborhood for not much. Imagine this neigh
by bsaul 5y ago
Because,there’s no income until you actually sell.
Imagine someone poor, having bought a small house in a sketchy neighborhood for not much. Imagine this neighborhood now becoming really fancy with hipsters moving in. With your system, the person would have to basically sell his house just to pay taxes on gains that didn’t translate into anything in his real life.
- newhouseb 5y agoIn many places in the US (California aside), property taxes are pegged against the assessed value of the home and re-assessed on a regular cadence. So the scenario you paint can definitely happen. The way that property taxes work in California is more similar to Capital Gains in the US where your taxes are based on the sale price (although imposed continually, not just when a transaction occurs). The net effect of this is that you have neighbors with effectively identical homes who pay a full order of magnitude difference in property taxes every year (i.e. 2k vs 20k). [1] [1] https://www.officialdata.org/ca-property-tax/ https://www.officialdata.org/ca-property-tax/
- 2Gkashmiri 5y agowhat is wrong with you. when did i talk about a "poor" person. i specifically wrote when you record an amount in your financial statements as your "gain", after close of financial year, there is no uncertanity of what was earned. the actual has happened. why would a regular home owner create his financial statement?
- zentiggr 5y agoYou said "accrual of income". Everyone has been trying to clarify to you, that the change in value of an unsold asset is not income, it is not a gain or loss as far as taxes are concerned.