Attn RE flippers

[scruffydog]

I wonder if this legislation will pass. Other countries have something similar. For instance France levies a tax on property held for less than 7 years.

“Investors who purchase rental housing and sell it within seven years would pay a hefty new tax under anti-house flipping legislation proposed in the California Assembly. AB 1771 by Assemblyman Chris Ward, D-San Diego, would create a 25% tax on the capital gain produced by selling a residential property within three years of buying it. The tax rate would then decline by 5 percentage points each year until reaching zero after seven years”.

[Coronita]

And how would this help put more supply on the market if people are taxed high to sell early, lol.

[an]

Some people don’t know Econ 101. Good luck trying to buy.

Also, great way to keep low income area run down.

[Escoguy]

I assume there must be provisions for the primary home not to be included in this tax.

[JPJones]

[quote=Coronita]And how would this help put more supply on the market if people are taxed high to sell early, lol.[/quote]

This is about demand more than supply. Investment money tied up for longer means less buyers overall competing for the same properties.

[Author]

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