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

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

Landlord owners pay a lot less on their capital gains income than the live-in owners next door pay on their wage and salary income.

It’s true that when live-in owners sell their homes they don’t have to pay taxes on the first $250,000 (single owner) or $500,000 (married couple) of capital gains profit. But that’s also true for landlords when landlords sell the homes they actually live in.

Other than that, live-in owners pay a lot higher taxes on their ordinary income than landlord owners pay on their long-term capital gains income. No wonder landlords can bid up house prices for everyone.

Is that fair?

Next

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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