[quote=mike92104]I’d prefer to eliminate the interest deduction on second homes.[/quote]
Absolutely.
Same with Prop 13 protection, which I ardently defend for primary residences. I have no problem with full-time, primary residents being protected by Prop 13, but do have a problem with subsidizing landlords.
IMHO, one of the reasons we have so many rentals in California is Prop 13. Being a LL in California is very lucrative because LLs are collecting the spread between their very low cost basis (due to Prop 13 and low prices in the 70s and 80s) and market rents. Since they collect market-based rents, they should pay market-based taxes.
Eliminating Prop 13 protection for rentals, second homes, investments, and commercial buildings (when they change hands, eliminating the loophole created by LLCs and other holding vehicles) would go a long way toward fixing our budget problems, too.
Housing is a basic necessity, and we should not encourage “investing” which drives up costs for people who simply need to buy shelter for themselves and their families.
