3 ms·

You mean that in the US you don't pay tax on the capital gain when you sell a property that is not your home? It's a great country to be rich in!

• dirck 4y ago
  There is definitely capital gains tax on non-primary residence homes. Only primary homes are exempt up to certain dollar.
• deleted 4y ago
  [deleted]
• redmorphium 4y ago
  You do pay tax on that. However, you don't have to if you die and pass the property down to your spouse and/or children. This is the step-up in basis and is key to building generational wealth in the US.
  • mywittyname 4y ago
    > This is the step-up in basis and is key to building generational wealth in the US. Yes, but for most people, that's not really a benefit. It's possible to exclude the first few hundred thousand of capital gains taxes on a primary residence anyway. So even without the step-up basis, the tax burden on these properties would be tiny. Property taxes are a much more significant form of taxation than capital gains. And would be even without any preferential treatment.
    • pksebben 4y ago
      capital gains ought to be taxed like regular income. it's insane that we cut breaks for wealth generation that requires no effort, and is scalable
• amluto 4y ago
  You can do a “1031 exchange” to trade a non-residence property for a different one.
  • mym1990 4y ago
    This is just a tax deferral, you will still pay tax eventually.
    • amluto 4y ago
      Not necessarily. You can hold on to it until you or your spouse dies, which will reset the tax basis.
      • mym1990 4y ago
        Cannot find where spouse dying resets the tax liability. If the outright owner passes away, that makes sense.
• mym1990 4y ago
  There are exceptions if you have lived in the property for 2 of the last 5 years.