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SD Realtor.
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October 9, 2007 at 11:06 PM #10551October 10, 2007 at 12:16 AM #87706
temeculaguy
ParticipantAs i understand it, this would fly in the face of trying to prop up the market and will do an incredible amount of damage to current values by making R/E less attractive, especially to investor sized homes (rentals), the very market that Rangel wants to protect, doesn’t he have staffers that look into this stuff for him. If you take away the possible tax free investment property or vacation home, I would be less inclined to buy one as would many others. Who needs fundamentals to cause the market to crash when we have the government to accelerate it. I’m taking back all of my 2009 predictions, I give it two weeks after all this legislation is passed. 50% off by the ides of march, final answer.
October 10, 2007 at 12:16 AM #87711temeculaguy
ParticipantAs i understand it, this would fly in the face of trying to prop up the market and will do an incredible amount of damage to current values by making R/E less attractive, especially to investor sized homes (rentals), the very market that Rangel wants to protect, doesn’t he have staffers that look into this stuff for him. If you take away the possible tax free investment property or vacation home, I would be less inclined to buy one as would many others. Who needs fundamentals to cause the market to crash when we have the government to accelerate it. I’m taking back all of my 2009 predictions, I give it two weeks after all this legislation is passed. 50% off by the ides of march, final answer.
October 10, 2007 at 5:41 AM #87720Coronita
ParticipantAlthough quite alarming of this proposal, I'm curious as to how they are actually going to implement it if it does pass.
1) How will they truely determine when you started considering a second home the "primary" resident? For example, if you had more than 1 residence in the same city.
2) How will Uncle Sam determine the fair market value of that home the day you started considering it a primary home? Because, the gain is no longer tied to purchase history, but rather than a arbitrary point in time when you decide it was a primary residence, is the IRS going ot staff up appraisers?
Seems like a lot of gray area that accountants and auditors will have a field day with.
I wouldn't worry about it. Folks will quibble over some technicality, and it probably won't pass.
October 10, 2007 at 5:41 AM #87725Coronita
ParticipantAlthough quite alarming of this proposal, I'm curious as to how they are actually going to implement it if it does pass.
1) How will they truely determine when you started considering a second home the "primary" resident? For example, if you had more than 1 residence in the same city.
2) How will Uncle Sam determine the fair market value of that home the day you started considering it a primary home? Because, the gain is no longer tied to purchase history, but rather than a arbitrary point in time when you decide it was a primary residence, is the IRS going ot staff up appraisers?
Seems like a lot of gray area that accountants and auditors will have a field day with.
I wouldn't worry about it. Folks will quibble over some technicality, and it probably won't pass.
October 10, 2007 at 7:18 AM #87726bsrsharma
ParticipantWhat population (both in numbers as well as % of voters) owns second homes that may be subject to this rule? I don’t think that would be very large, since the bill seems to be sailing through the House & Senate pretty smoothly. There wasn’t even much of a debate, no threats of amendments, filibusters, vetoes .. nothing. So politically, this must be very popular & safe.
October 10, 2007 at 7:18 AM #87731bsrsharma
ParticipantWhat population (both in numbers as well as % of voters) owns second homes that may be subject to this rule? I don’t think that would be very large, since the bill seems to be sailing through the House & Senate pretty smoothly. There wasn’t even much of a debate, no threats of amendments, filibusters, vetoes .. nothing. So politically, this must be very popular & safe.
October 10, 2007 at 7:58 AM #87732SD Realtor
ParticipantFLU as you know I am a betting man and I would even give you odds if you want them that this will pass. Your questions about implementation are quite valid. My understanding is that it would apply for properties purchased after 1/1/08 for second homes/investment properties. Again, your questions are valid but I do feel it will pass… It is a nice little barb at the end of the hook though isn’t it?
SD Realtor
October 10, 2007 at 7:58 AM #87737SD Realtor
ParticipantFLU as you know I am a betting man and I would even give you odds if you want them that this will pass. Your questions about implementation are quite valid. My understanding is that it would apply for properties purchased after 1/1/08 for second homes/investment properties. Again, your questions are valid but I do feel it will pass… It is a nice little barb at the end of the hook though isn’t it?
SD Realtor
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