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(former)FormerSanDiegan
ParticipantSo, the idea of a typical engineer making 150K is merely far-fetched, but the idea of a typical educated DINK couple making 300k borders on science fiction.
I agree. Your typical professional DINK couple in their mid 30’s are making only about 200K.
ParticipantAlt-A is really out there but the consensus is about $600B. The most important and damaging part of that seems to be the Pay Option ARM products in the Alt-A space. With estimated $500B in Pay Option out there that would be about 80% of Alt-A.
I think many people consider alt-A and option ARM interchangeable. They are not. These are not mutually inclusive categories (nor mutually exclusive).
Option ARMs are toxic. But they are a category of loan product that was available as alt-A, prime and even sub-prime.
Alt-A includes not only option ARMS, but fully amortizing and IO options on 5/1, 7/1, 10/1 ARMS, and 15, and 30 year fixed.
So the $500 Billion pay option ARMS are toast, but they are not all Alt-A loans. Some were/are subprime and prime.
Option ARM are toast. Alt-a as a general category is another question.
ParticipantAlt-A is really out there but the consensus is about $600B. The most important and damaging part of that seems to be the Pay Option ARM products in the Alt-A space. With estimated $500B in Pay Option out there that would be about 80% of Alt-A.
I think many people consider alt-A and option ARM interchangeable. They are not. These are not mutually inclusive categories (nor mutually exclusive).
Option ARMs are toxic. But they are a category of loan product that was available as alt-A, prime and even sub-prime.
Alt-A includes not only option ARMS, but fully amortizing and IO options on 5/1, 7/1, 10/1 ARMS, and 15, and 30 year fixed.
So the $500 Billion pay option ARMS are toast, but they are not all Alt-A loans. Some were/are subprime and prime.
Option ARM are toast. Alt-a as a general category is another question.
ParticipantAlt-A is really out there but the consensus is about $600B. The most important and damaging part of that seems to be the Pay Option ARM products in the Alt-A space. With estimated $500B in Pay Option out there that would be about 80% of Alt-A.
I think many people consider alt-A and option ARM interchangeable. They are not. These are not mutually inclusive categories (nor mutually exclusive).
Option ARMs are toxic. But they are a category of loan product that was available as alt-A, prime and even sub-prime.
Alt-A includes not only option ARMS, but fully amortizing and IO options on 5/1, 7/1, 10/1 ARMS, and 15, and 30 year fixed.
So the $500 Billion pay option ARMS are toast, but they are not all Alt-A loans. Some were/are subprime and prime.
Option ARM are toast. Alt-a as a general category is another question.
ParticipantAlt-A is really out there but the consensus is about $600B. The most important and damaging part of that seems to be the Pay Option ARM products in the Alt-A space. With estimated $500B in Pay Option out there that would be about 80% of Alt-A.
I think many people consider alt-A and option ARM interchangeable. They are not. These are not mutually inclusive categories (nor mutually exclusive).
Option ARMs are toxic. But they are a category of loan product that was available as alt-A, prime and even sub-prime.
Alt-A includes not only option ARMS, but fully amortizing and IO options on 5/1, 7/1, 10/1 ARMS, and 15, and 30 year fixed.
So the $500 Billion pay option ARMS are toast, but they are not all Alt-A loans. Some were/are subprime and prime.
Option ARM are toast. Alt-a as a general category is another question.
ParticipantAlt-A is really out there but the consensus is about $600B. The most important and damaging part of that seems to be the Pay Option ARM products in the Alt-A space. With estimated $500B in Pay Option out there that would be about 80% of Alt-A.
I think many people consider alt-A and option ARM interchangeable. They are not. These are not mutually inclusive categories (nor mutually exclusive).
Option ARMs are toxic. But they are a category of loan product that was available as alt-A, prime and even sub-prime.
Alt-A includes not only option ARMS, but fully amortizing and IO options on 5/1, 7/1, 10/1 ARMS, and 15, and 30 year fixed.
So the $500 Billion pay option ARMS are toast, but they are not all Alt-A loans. Some were/are subprime and prime.
Option ARM are toast. Alt-a as a general category is another question.
August 11, 2008 at 8:43 AM in reply to: rumor about capital gain exclusion for primary residence #255632Participantpepsi is correct.
a) Count the number of days of non-personal use after Jan 1, 2009.
b) Divide the number from a. by the total number of days you owned the home.
That’s the percentage of the gain that is taxable.
So, assuming you rent it out for 6 months in 2009, you will be taxed on 10% of the gain. Long-term capital gains tax is 15%. So, you will pay 1.5% of the gain. Not a big deal. Just make sure to sell before you exceed the 2 of 5 years primary residence test. Otherwise at that point it is 100% taxable.
Not sure what the state tax ramifications will be.
August 11, 2008 at 8:43 AM in reply to: rumor about capital gain exclusion for primary residence #255809Participantpepsi is correct.
a) Count the number of days of non-personal use after Jan 1, 2009.
b) Divide the number from a. by the total number of days you owned the home.
That’s the percentage of the gain that is taxable.
So, assuming you rent it out for 6 months in 2009, you will be taxed on 10% of the gain. Long-term capital gains tax is 15%. So, you will pay 1.5% of the gain. Not a big deal. Just make sure to sell before you exceed the 2 of 5 years primary residence test. Otherwise at that point it is 100% taxable.
Not sure what the state tax ramifications will be.
August 11, 2008 at 8:43 AM in reply to: rumor about capital gain exclusion for primary residence #255813Participantpepsi is correct.
a) Count the number of days of non-personal use after Jan 1, 2009.
b) Divide the number from a. by the total number of days you owned the home.
That’s the percentage of the gain that is taxable.
So, assuming you rent it out for 6 months in 2009, you will be taxed on 10% of the gain. Long-term capital gains tax is 15%. So, you will pay 1.5% of the gain. Not a big deal. Just make sure to sell before you exceed the 2 of 5 years primary residence test. Otherwise at that point it is 100% taxable.
Not sure what the state tax ramifications will be.
August 11, 2008 at 8:43 AM in reply to: rumor about capital gain exclusion for primary residence #255872Participantpepsi is correct.
a) Count the number of days of non-personal use after Jan 1, 2009.
b) Divide the number from a. by the total number of days you owned the home.
That’s the percentage of the gain that is taxable.
So, assuming you rent it out for 6 months in 2009, you will be taxed on 10% of the gain. Long-term capital gains tax is 15%. So, you will pay 1.5% of the gain. Not a big deal. Just make sure to sell before you exceed the 2 of 5 years primary residence test. Otherwise at that point it is 100% taxable.
Not sure what the state tax ramifications will be.
August 11, 2008 at 8:43 AM in reply to: rumor about capital gain exclusion for primary residence #255920Participantpepsi is correct.
a) Count the number of days of non-personal use after Jan 1, 2009.
b) Divide the number from a. by the total number of days you owned the home.
That’s the percentage of the gain that is taxable.
So, assuming you rent it out for 6 months in 2009, you will be taxed on 10% of the gain. Long-term capital gains tax is 15%. So, you will pay 1.5% of the gain. Not a big deal. Just make sure to sell before you exceed the 2 of 5 years primary residence test. Otherwise at that point it is 100% taxable.
Not sure what the state tax ramifications will be.
August 8, 2008 at 5:13 PM in reply to: rumor about capital gain exclusion for primary residence #254835ParticipantIt applies to houses purchased after the end of this year:
Actually it applies to SALES after the end of this year. It applies to ALL homes, even those bought before 2009. However the clock for counting the number of days of non-qualified use starts Jan 1, 2009.
The taxable gain is Dnon/Dtot
where Dnon is the number of days of non-qualified use after Jan 1, 2009. Dtot is the total number of days used (assuming you lived in it as a primary residence in 2 out of 5 years).Details outlined here under item #3.
http://tinyurl.com/58q586I am sure people will be confused by this for the next several years. I bet that they eventually just “simplify” it in a way that results in higher taxes.
August 8, 2008 at 5:13 PM in reply to: rumor about capital gain exclusion for primary residence #255007ParticipantIt applies to houses purchased after the end of this year:
Actually it applies to SALES after the end of this year. It applies to ALL homes, even those bought before 2009. However the clock for counting the number of days of non-qualified use starts Jan 1, 2009.
The taxable gain is Dnon/Dtot
where Dnon is the number of days of non-qualified use after Jan 1, 2009. Dtot is the total number of days used (assuming you lived in it as a primary residence in 2 out of 5 years).Details outlined here under item #3.
http://tinyurl.com/58q586I am sure people will be confused by this for the next several years. I bet that they eventually just “simplify” it in a way that results in higher taxes.
August 8, 2008 at 5:13 PM in reply to: rumor about capital gain exclusion for primary residence #255013ParticipantIt applies to houses purchased after the end of this year:
Actually it applies to SALES after the end of this year. It applies to ALL homes, even those bought before 2009. However the clock for counting the number of days of non-qualified use starts Jan 1, 2009.
The taxable gain is Dnon/Dtot
where Dnon is the number of days of non-qualified use after Jan 1, 2009. Dtot is the total number of days used (assuming you lived in it as a primary residence in 2 out of 5 years).Details outlined here under item #3.
http://tinyurl.com/58q586I am sure people will be confused by this for the next several years. I bet that they eventually just “simplify” it in a way that results in higher taxes.
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