Conclusion

Part 18 of... "6 Tax Breaks Landlords Get that Hurt the Economy and You"

The real estate industry will nitpick every simplification I’ve made in this piece to distract from the point. 

We will increase, 1) home ownership, 2) economic growth, 3) economic equality, and 4) stable family wealth creation, if the U.S. government stops distorting the housing market with all the crazy tax breaks it gives to landlords of single-family houses and condos.

6 Crazy Tax Breaks Landlords Get

• Depreciation tax deduction

• 1031 Exchange tax deduction

• Mortgage interest tax deduction

• Tax-free landlord profit-taking

• Taxes on capital gains are lower than on ordinary income

• Stepped-up tax basis

Landlords who want to keep all those crazy tax breaks can simply buy apartments and commercial real estate instead of single-family houses and condos.

Landlords would still get the same tax breaks live-in owners get on single-family houses and condos – but only on the houses the landlords actually live in – not more.

That’s fair.

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ALL

Part 1 – 6 Tax Breaks Landlords Get that Hurt the Economy and You

Part 2 – Depreciation Tax Deduction – (Tax Deferral)

Part 3 – 1031 Exchange – (Tax Deferral)

Part 4 – Mortgage Interest Tax Deduction – (Tax Reduction)

Part 5 – Tax-Free Landlord Profit – (Tax Deferral)

Part 6 – Taxes on Capital Gains are a Lot Lower Than Taxes on Ordinary Income – (Tax Reduction)

Part 7 – Stepped-Up Tax Basis – (Tax Reduction)

Part 8 – 6 Distortions of the Housing Market

Part 9 – 2 Sets of Rules for Single-Family Houses

Part 10 – Fixed Supply of Single-Family Houses

Part 11 - Houses for Homes, Not Tax Shelters

Part 12 - Solutions

Part 13 - Permanently Increase Economic Growth

Part 14 - Life is Crazy Enough

Part 15 - The Hardest Part

Part 16 - Distorted Back to Reality

Part 17 - Stop Distorting the Housing Market

Part 18 - Conclusion