If you bought your house in 1986 for $60k, and then sold it in 2021 for a $million, and you lived in it for those 25 years as your principal residence, then that is tax-free.
Obviously this is less about landlords than just homeowners who are celebrating their good fortune, but still: blaming corporations is a cop-out.
Sorry, but how does that tax exemption work for the landlords then? They have to live in the unit for at least a year to avoid capital gain on the property.
That’s 9%/year annual rate of return (assuming 2% inflation), which is good, but not unheard of (here’s the calculator i used. This ignores all the money they put into the place while they lived in it (roof’s and heaters etc aren’t cheap). It also discounts that they need to find a place to live in 2021 where all houses just got much more expensive then back in 1986.
How exactly do they get it tax free due to principle residence exemption?
If you bought your house in 1986 for $60k, and then sold it in 2021 for a $million, and you lived in it for those 25 years as your principal residence, then that is tax-free.
Obviously this is less about landlords than just homeowners who are celebrating their good fortune, but still: blaming corporations is a cop-out.
Yeah, that one is well known. I was trying to figure out how they made that work with rentals, which don’t have that exclusive.
Sorry, but how does that tax exemption work for the landlords then? They have to live in the unit for at least a year to avoid capital gain on the property.
That’s 9%/year annual rate of return (assuming 2% inflation), which is good, but not unheard of (here’s the calculator i used. This ignores all the money they put into the place while they lived in it (roof’s and heaters etc aren’t cheap). It also discounts that they need to find a place to live in 2021 where all houses just got much more expensive then back in 1986.
That whole time they were paying property tax.