The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: CalculatedRisk who wrote (69397)	12/26/2006 11:32:34 AM
From: bentway	Read Replies (2) of 306849

"Just to make sure everyone knows - there are differing opinions on the '97 tax change - I believe the '97 tax change was irrelevant and has nothing to do with the housing boom." Me too! I think the lowest interest rates in 50 years coupled with the lowest lending standards in my lifetime did the trick. Any effect the homestead tax exemption had was miniscule. The tax break Jim constantly harps on was ONLY available to people who lived in the house they sold for the previous two years or more. You DON'T get it for second, third, fourth or seventh homes. It is 250k for singles and 500k for married couples, although he only uses the 500k figure. Although I'm sure some of these people DID sell their houses and buy houses in Florida, someone who lives in a house for two years ISN'T anyone but Jim's idea of a "flipper"! I still like this tax break. It's one of the ONLY big tax breaks available to ordinary homeowners. At the time, it was touted as a way for JSP to raise large sums of cash for medical emergencies or other contingencies, uses that are still valid today. To get it, you have to SELL YOUR HOMESTEAD.

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