Posts

$120 For A Piece of Fruit? Capital Gains Changes Could Spark MORE Selling; Why You Can’t Catch An Uber

BIDDING WAR FOR AN APPLE This very short TikTok video went viral last week, as it well should have b/c it is both so illustrative and entertaining. I had to share it again just in case any readers have not seen it. The best line: “I’ll take it for $100 – I’m from California and […]Read More

Higher Capital Gains Taxes? 2 HUGE Effects On Real Estate & Mortgages

INVESTOR WITH 70 HOMES REFUSES TO SELL I know an investor who owns over 70 single-family homes in California that he accumulated in the 1980s. Almost all are rented at below-market rates** with minimal or no mortgages, and he refuses to sell any of them. **Pro Tip: In my 27-year mortgage career, I have observed […]Read More

Capital Gains Taxes On Real Estate

CAPITAL GAINS 101 The IRS and many states collect capital gains taxes on the difference between what someone pays for an asset (their “basis”) vs what they sell it for. This tax applies to most assets such as stocks, cars, boats and of course real estate. EXCLUSION AMOUNTS The IRS allows property-sellers to ignore capital […]Read More

Primary Residence Capital Gains Exclusion – Boring But Necessary

Homeowners can usually avoid capital gains taxes when they sell their primary residence for a profit. Individuals can exclude $250,000 of gains, and married couples can exclude $500,000 – if they meet certain guidelines. Most people in the real estate and mortgage industry are aware of this in general, but they don’t understand the specifics […]Read More