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1031 exchanges are not available to homeowners, they are exclusively available for investment properties. Homeowners receive a $250k/$500k tax shelter as discus
by w4 5y ago
1031 exchanges are not available to homeowners, they are exclusively available for investment properties. Homeowners receive a $250k/$500k tax shelter as discussed above.
- sp_nster 5y agoThe $250/$500k is a one-time benefit and you will absolutely take advantage of it when you sell your home. The idea of taxing this "profit" for the home owner would be insane. The investment and re-investment in real-estate drives a big majority of the economy. I'm for modifying 1031 for investors who rent their properties. \
- TheOtherHobbes 5y agoAnd this is why property prices are insane. Investments of all kind receive generous tax breaks even when they're simple rent seeking. So you get the triple whammy of unaffordable prices with unaffordable rents with downward pressure on wages - because the rent-seeking behaviour of share holders is privileged over the value of the work that underpins it. It's not just a recipe for economic disaster for most of the population, it's also a recipe for political instability. In a democracy everyone should feel like the system is working in their interests. When essentials become unaffordable and pricing becomes punitive and extortionate, people get angry and start to act in insane ways.