If buying a house as a couple, you’re allowed $500,000 net profit on the sale. If you bought it for $800,000 you can sell it for $1.3M without a problem. He explains this the video.
If you're making more than 500k off your home in 2 years, you should be taxed heavily on it. The insanity of the housing market is a big reason our economy is as screwed as it is right now. A run down home built in the 70s with crap land should not cost as much as it does now, housing is artificially inflated beyond belief.
If you owned the house that made 500k in 2 years, you'd be singing a totally different tune. Lol! Do you think higher taxes help stabilize the economy? ... while I'll say housing is expensive for your average American, cause it is. Increasing taxes most certainly WILL NOT fux a supply and demand issue. Supply needs to vastly increase to level the playing field. If taxes exhorbinatly rise, and the corporate REITs backed by the Big 3 buy a majority of the hosuing in the US. Homeownership will become a thing of the past for all Americans.
"Cost basis is the original cost of obtaining an asset. It can include the purchase price and any fees. During the time that an asset is held, its value can change due to changes in market value, as well as any depreciation. The tax basis is the adjusted cost basis of the asset at the time the asset is sold."
very confused...are you literally telling me if I buy a house for 800,000.....live it in for 4 years....then sell it for 800,000, literally making ZERO in capital gains, that I'll still owe 23.8% on over 500,000 of it? That doesnt make any sense, I must be misundertanding here. its like you didnt take the ORIGINAL purchase price of the house into consideration. Capital GAINS...means I MADE A PROFIT on the sale. The Cost Basis absolutely factors into what is owed when we sale something and determine how much we owe in taxes.
Yeah. Your confused. No worries! Say I bought the house for $200k, 10yrs ago. And I'm single (not married). Sold it for $1m. Made an 800k capital gain. Then after the 250k "single" tax exemption, if I live in the home 2 out of the last 5. Then I made a "taxable" (net) profit of 550k. 550k is above the 20% capital gains tax threshold, plus has the NIIT. So 23.8% capital gains tax total on 550k. 😁
Giving government more tax money produces the same effect as giving a fentanyl addict , more fentanyl.
Got that right!
Underrated comment!
Subscribing, surprised a small channel actually broke through the alg.
Right?!?! I've been at it for almost 4 years. Finally, getting some credit. Lol!
Thanks for the comment and Subscribe!
If buying a house as a couple, you’re allowed $500,000 net profit on the sale. If you bought it for $800,000 you can sell it for $1.3M without a problem. He explains this the video.
Thank you!
If you're making more than 500k off your home in 2 years, you should be taxed heavily on it.
The insanity of the housing market is a big reason our economy is as screwed as it is right now. A run down home built in the 70s with crap land should not cost as much as it does now, housing is artificially inflated beyond belief.
If you owned the house that made 500k in 2 years, you'd be singing a totally different tune. Lol!
Do you think higher taxes help stabilize the economy?
... while I'll say housing is expensive for your average American, cause it is. Increasing taxes most certainly WILL NOT fux a supply and demand issue. Supply needs to vastly increase to level the playing field. If taxes exhorbinatly rise, and the corporate REITs backed by the Big 3 buy a majority of the hosuing in the US. Homeownership will become a thing of the past for all Americans.
Buy a duplex deduct interest, expenses, repairs, depreciation, 1031 exchange. Win, win,win,win
House hacking is very smart! Thanks for the comment!
We can't opt out of this terrible system. Even if you switch to a simple gardening life they'll get you with property taxes. Slavery.
Can't argue that. ...we do have Consitutional protections, but will the people ever use them?
Federal Taxation is only legal during an emergency or during war.
@@RipliWitani Wish that was still the case. The unraitifed 16A changed all that!
@@RipliWitani We end up in jail regardless.
"Cost basis is the original cost of obtaining an asset. It can include the purchase price and any fees. During the time that an asset is held, its value can change due to changes in market value, as well as any depreciation. The tax basis is the adjusted cost basis of the asset at the time the asset is sold."
Correct. See below (or above).
very confused...are you literally telling me if I buy a house for 800,000.....live it in for 4 years....then sell it for 800,000, literally making ZERO in capital gains, that I'll still owe 23.8% on over 500,000 of it?
That doesnt make any sense, I must be misundertanding here.
its like you didnt take the ORIGINAL purchase price of the house into consideration.
Capital GAINS...means I MADE A PROFIT on the sale.
The Cost Basis absolutely factors into what is owed when we sale something and determine how much we owe in taxes.
Yeah. Your confused. No worries! Say I bought the house for $200k, 10yrs ago. And I'm single (not married). Sold it for $1m. Made an 800k capital gain. Then after the 250k "single" tax exemption, if I live in the home 2 out of the last 5. Then I made a "taxable" (net) profit of 550k. 550k is above the 20% capital gains tax threshold, plus has the NIIT. So 23.8% capital gains tax total on 550k. 😁