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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Tradelite who wrote (3524)	7/21/2002 4:03:16 PM
From: Jim McMannis	Respond to of 306849

*RE:"do you regard living in a property as your principal residence, for a minimum of two years, and then selling it, to be flipping? "* Yes. Theoretically, if you can do it and make a profit you can live tax free. In reality of course there will become a point where this will be very difficult. Then people might learn they can't deduct the loss on a home from their income tax. If you build a home AND can find decent priced land your chances are even better of living tax free this way. All these tax breaks don't really promote home ownership. They just make the inflated prices caused by these tax breaks more affordable. The fact that stocks get little or no breaks on cap gains just exacerbates the problem. Stock ownership goes further to the back of the bus and stock prices continue to drop while RE prices bubble. Net result is that the FED government gets nothing from home sales and then has to eat the losses on stock sales for years as people work off their stock losses. Throw in deficit spending on this war or terrorism...and.. If this isn't a formula for fiscal tax shortfall disaster I've never seen one.