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Post by JustMyOpinion on Jun 24, 2009 14:09:30 GMT -5
Well, Prop 13 also limits the amount of taxes to be collected and drives up the supply and demand of real estate since people don't want to let go of the tax base, well, unless they use Prop 60/90, but those options are very limited. I know someone that bought a house for $40k and sold it for $2.3 million. The tax base was so incredibly low for YEARS on that house and I don't see the fairness, and the owner was a very successful doctor that could afford increases over the decades. I agree for seniors or people with fixed income keeping property taxes low are beneficial to them. In some ways Prop 13 is a catch 22, or at least that's my understanding of it.
BTW, capttankona were you thinking of the CA estate/death taxes and the effect on your children?
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Post by The Big Dog on Jun 24, 2009 16:01:14 GMT -5
Let's not confuse Prop 13's limits on property tax increases and the requirement for a 2/3 majority vote (either in the legislature or at the ballot box) for any new or increased taxes, with capital gains tax which is what the $40K --> $2.3M is about.
If you buy a real or investment asset at one price and sell it later on at a higher price, you must pay taxes on the gain. Likewise, if you sell at a loss you write that off your taxes.
Those two areas of taxation (property and capital gain) are mutually exclusive of each other. Captial gains is also, in the example above, partially exclusive of estate / death tax.... which is a whole different set of screwings in an of itself. A family member who inherits real estate or investment vehicles generally pays estate taxes. If they chose to sell that property later, it becomes a capital gain taxed, again and seperately, from the value it held at the time of ownership transfer / inheritance to the time of sale.
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Post by heckheckle on Jun 27, 2009 21:56:51 GMT -5
The difference between "Government", and "You and Me" is,
they can print money. You and I can't.
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