Being either incompetent boobs, or conniving thieves in the night, or both, when Congress and Clinton passed the "Taxpayer Relief Act of 1997", they caused the Great American Housing Ponzi Scheme to take off.
By allowing gains on home sales ($250,000 single, $500,000 couple) to go tax free.
Why work for a living when you could just flip houses? Why pay taxes when you could live a tax-free life?
Folks, this horrific and corrupt piece of legislation must be overturned, post haste.
Housing gain proceeds should be taxed like capital gains, which they are. And Congress should make this adjustment retroactive effective 1/1/06.
I'd love to see who came up with this big wet kiss originally, and what their REIC contributors looked like. Any HP sleuths are welcome to dig a bit and to report back.
People may hear this call and think I'm a big-tax liberal. I am not - I love low taxes. But what I hate is stupid or unfair tax policy, and Sec 121 of 1997 is the stupidest, most unfair piece of tax legislation written in the history of the United States. And now you are all paying the price, whether you know it or not. This piece of legislation is what crashed the American economy 2007 - 2010. Let's make sure it doesn't happen again.
If you agree with me, you can write your Congressman here.
When it passed Code Sec. 121 in the Taxpayer Relief Act of 1997, Congress greatly expanded the tax assistance afforded to individuals selling their homes. For instance, Code Sec. 121 now prescribes that an individual can exclude up to $250,000 of gain ($500,000 if a joint return is filed) on the sale of a primary residence if the homeowner owned and used the home for at least two out of five years preceding the date of sale. Code Sec. 121 provides that the exclusion applies regardless of the age of the taxpayer. Further, the full exclusion can only be used once every two years, and a taxpayer who fails to meet these requirements due to a change in place of employment, health or unforeseen circumstances is entitled to a reduced exclusion
December 15, 2006
HousingPanic calls on Congress and Bush to repeal the big wet REIC kiss that caused the housing bubble - Sec. 121 of the Taxpayer Relief Act of 1997
Posted by blogger at 12/15/2006