[EconProf]

BobS
Capital gains tax will likely go up from current 15% federal to 25%+ under a Democrat; may even go up under McCain, but perhaps only to 18 – 20%.
Paying it now under current tax rate has its advantages:
Lower rate now, plus you are not compelled to rush into a perhaps misguided upleg purchase with their strict deadlines, pressure to buy, etc.
Don’t forget that CA has one of the harshest treatments of cap gains in the nation. I just sold a commercial property I held for 25 years. Sheltered some of the proceeds with a 1031 for some of the gains. Still paid plenty to the feds and about 2/3 that amount to the state.
Your decision should rest upon your view of the market in the time frame you would hold the upleg, your view of today’s and tomorrow’s interest rates, etc. This is a big decision, and worth a session with your accountant.

[EconProf]

BobS
Capital gains tax will likely go up from current 15% federal to 25%+ under a Democrat; may even go up under McCain, but perhaps only to 18 – 20%.
Paying it now under current tax rate has its advantages:
Lower rate now, plus you are not compelled to rush into a perhaps misguided upleg purchase with their strict deadlines, pressure to buy, etc.
Don’t forget that CA has one of the harshest treatments of cap gains in the nation. I just sold a commercial property I held for 25 years. Sheltered some of the proceeds with a 1031 for some of the gains. Still paid plenty to the feds and about 2/3 that amount to the state.
Your decision should rest upon your view of the market in the time frame you would hold the upleg, your view of today’s and tomorrow’s interest rates, etc. This is a big decision, and worth a session with your accountant.

[EconProf]

BobS
Capital gains tax will likely go up from current 15% federal to 25%+ under a Democrat; may even go up under McCain, but perhaps only to 18 – 20%.
Paying it now under current tax rate has its advantages:
Lower rate now, plus you are not compelled to rush into a perhaps misguided upleg purchase with their strict deadlines, pressure to buy, etc.
Don’t forget that CA has one of the harshest treatments of cap gains in the nation. I just sold a commercial property I held for 25 years. Sheltered some of the proceeds with a 1031 for some of the gains. Still paid plenty to the feds and about 2/3 that amount to the state.
Your decision should rest upon your view of the market in the time frame you would hold the upleg, your view of today’s and tomorrow’s interest rates, etc. This is a big decision, and worth a session with your accountant.

[EconProf]

BobS
Capital gains tax will likely go up from current 15% federal to 25%+ under a Democrat; may even go up under McCain, but perhaps only to 18 – 20%.
Paying it now under current tax rate has its advantages:
Lower rate now, plus you are not compelled to rush into a perhaps misguided upleg purchase with their strict deadlines, pressure to buy, etc.
Don’t forget that CA has one of the harshest treatments of cap gains in the nation. I just sold a commercial property I held for 25 years. Sheltered some of the proceeds with a 1031 for some of the gains. Still paid plenty to the feds and about 2/3 that amount to the state.
Your decision should rest upon your view of the market in the time frame you would hold the upleg, your view of today’s and tomorrow’s interest rates, etc. This is a big decision, and worth a session with your accountant.

[EconProf]

BobS
Capital gains tax will likely go up from current 15% federal to 25%+ under a Democrat; may even go up under McCain, but perhaps only to 18 – 20%.
Paying it now under current tax rate has its advantages:
Lower rate now, plus you are not compelled to rush into a perhaps misguided upleg purchase with their strict deadlines, pressure to buy, etc.
Don’t forget that CA has one of the harshest treatments of cap gains in the nation. I just sold a commercial property I held for 25 years. Sheltered some of the proceeds with a 1031 for some of the gains. Still paid plenty to the feds and about 2/3 that amount to the state.
Your decision should rest upon your view of the market in the time frame you would hold the upleg, your view of today’s and tomorrow’s interest rates, etc. This is a big decision, and worth a session with your accountant.

[EconProf]

BobS
On the other hand, if you are in the market for a house, you’re in luck!

[EconProf]

BobS
On the other hand, if you are in the market for a house, you’re in luck!

[EconProf]

BobS
On the other hand, if you are in the market for a house, you’re in luck!

[EconProf]

BobS
On the other hand, if you are in the market for a house, you’re in luck!

[EconProf]

BobS
On the other hand, if you are in the market for a house, you’re in luck!

[EconProf]

BobS
This device is actually a smart policy if he has his facts straight and has the will-power to pull it off (both questionable).
Consider: why not pay down your LOC by $60k for one year, borrowing the same amount for 0% interest from credit cards? Assuming he is avoiding, say, 7% interest on the LOC, that’s $4,200. He just has to have the gumption to pay off the $60k card debt in one year by tapping into his HELOC (assuming it hasn’t been unilaterally reduced by the bank). I really question his assertion that credit card companies are giving 1 year interest-free loans this way…they may be demonstrably stupid, but are not suicidal.

[EconProf]

BobS
This device is actually a smart policy if he has his facts straight and has the will-power to pull it off (both questionable).
Consider: why not pay down your LOC by $60k for one year, borrowing the same amount for 0% interest from credit cards? Assuming he is avoiding, say, 7% interest on the LOC, that’s $4,200. He just has to have the gumption to pay off the $60k card debt in one year by tapping into his HELOC (assuming it hasn’t been unilaterally reduced by the bank). I really question his assertion that credit card companies are giving 1 year interest-free loans this way…they may be demonstrably stupid, but are not suicidal.

[EconProf]

BobS
This device is actually a smart policy if he has his facts straight and has the will-power to pull it off (both questionable).
Consider: why not pay down your LOC by $60k for one year, borrowing the same amount for 0% interest from credit cards? Assuming he is avoiding, say, 7% interest on the LOC, that’s $4,200. He just has to have the gumption to pay off the $60k card debt in one year by tapping into his HELOC (assuming it hasn’t been unilaterally reduced by the bank). I really question his assertion that credit card companies are giving 1 year interest-free loans this way…they may be demonstrably stupid, but are not suicidal.

[EconProf]

BobS
This device is actually a smart policy if he has his facts straight and has the will-power to pull it off (both questionable).
Consider: why not pay down your LOC by $60k for one year, borrowing the same amount for 0% interest from credit cards? Assuming he is avoiding, say, 7% interest on the LOC, that’s $4,200. He just has to have the gumption to pay off the $60k card debt in one year by tapping into his HELOC (assuming it hasn’t been unilaterally reduced by the bank). I really question his assertion that credit card companies are giving 1 year interest-free loans this way…they may be demonstrably stupid, but are not suicidal.

[EconProf]

BobS
This device is actually a smart policy if he has his facts straight and has the will-power to pull it off (both questionable).
Consider: why not pay down your LOC by $60k for one year, borrowing the same amount for 0% interest from credit cards? Assuming he is avoiding, say, 7% interest on the LOC, that’s $4,200. He just has to have the gumption to pay off the $60k card debt in one year by tapping into his HELOC (assuming it hasn’t been unilaterally reduced by the bank). I really question his assertion that credit card companies are giving 1 year interest-free loans this way…they may be demonstrably stupid, but are not suicidal.

[Author]

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