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

To: GraceZ who wrote (242731)	4/1/2010 3:01:02 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 306849

There is a tax incentive to remain an owner (even without the mortgage deduction). what tax incentive is that? unless you mean avoiding capital gains tax. other than the mortgage interest deduction, it seems all tax implications of homeownership are negative. property tax is obviously a negative. also, property ownership makes it more difficult to leave a particular state in the event of new, much higher state taxes. such tax increases (including much higher property taxes) are likely in the years ahead, as state and municipality pension funds start to go bankrupt en masse. in this situation, homeowners are "bagholders" who can be targeted. this is already clearly the case in places like Detroit, where homes may be priced as low as pennies per square foot--far below salvage value. the implication is that the tax liability is greater than the economic value of the property.