3 ms·
> do not have pay taxes on the gains you made on your house (what you paid vs. what it is worth now) Absent a few exceptions, at least in the US you very much
by pwg 2y ago
> do not have pay taxes on the gains you made on your house (what you paid vs. what it is worth now)
Absent a few exceptions, at least in the US you very much do have to pay capitol gains on the increase in value of your house when you sell it. And those exceptions typically amount to a deferral of the tax rather than a "tax free" gain.
The one sure way to not pay capital gains on one's house is to hold it until you die, and then your heirs get the 'step-up' basis and they don't have to pay tax on your gains, but will have to pay tax on the gain they accrue while they hold it.
- bdangubic 2y agoYea, you do if you make over 250k in profit but you can roll that over with 1031. Still cannot see how home equity can be compared to borrowing against securities - there are a TON of taxes that we pay for owning a home and none for owning a security...
- pwg 2y ago> Still cannot see how home equity can be compared to borrowing against securities Home equity: borrow money with the home used as collateral - if you default on the loan the bank takes your house to make themselves whole again. Borrow against securities: borrow money with the securities used as collateral - if you default on the loan the bank takes your securities to make themselves whole again. The fact that the house also comes with an attached "ownership tax" that the securities do not include does not change the fact that it is the exact same type of "borrowing".
- bdangubic 2y agoI would agree with this statement 100% if I was also hiding from the government the fact that I own a home when they came to collect property taxes. Since I am not this argument does not hold water.