Joel and Kathryn Friedman, both 71, are counting the days until they can sell their home and move into a 55-plus community.
The retired empty-nesters have been ready to downsize for years, but are reluctant to sell their five-bedroom, 5,000-square-foot Southern California house [mansion] in large part because of at least $700,000 in capital gains taxes they estimate they’d have to pay.
Since 1997, home sale profits over $500,000 (for married couples) and $250,000 (for single filers) have been subject to a capital gains tax of up to 20%. That threshold hasn’t changed since 1997, meaning that — between inflation and soaring home prices pushing an ever higher number of houses above that limit — many more home sellers have to pay the tax now than when it was first implemented.
The Friedmans are among a growing number of older homeowners discouraged by the tax from selling their valuable properties. Housing economists say that dynamic has exacerbated a shortage of family-sized homes on the market, especially in expensive places like California.
The Friedmans’ house is too big for them, and maintenance costs are only rising, Joel said. “There are a million reasons why we’d like to move, but we’re not because the tax is just burdensome,” he said.
But that could change — there’s bipartisan support in Congress for raising the federal tax threshold to boost home sales in a stagnant market.
Sadly it took me way to long to let go of the constant argument people with a good relationship with their parents tell me: “but they’re your parents dude!”
Exactly, they are, I didn’t chose them, unlike my friends who actually treat me with respect and dignity. Fuck toxic family, fuck toxic people, surround yourself with people who love you for who you are and who you love for who they are. Treating each other with mutual respect. Fuck manipulative narcissistic behavior. Even when they are your parents.
Yes absolutely this. I’m glad that this sentiment is seen more and more in the younger generations. They won’t bend for jobs or abuse that easily like mine (genx) or earlier did and still do.
“But they’re your parents!”. Aaand? “dad” or “mom” are titles earned by love not labels given by birth. Toxic is toxic. Fuck it.
They demand to be repaid for raising you. We didn’t chose to be put on this fucking world. They chose kids, it’s their responsibility. We owe them nothing. “But we love you.” Then fucking show it instead of making our lives miserable. Give love, get love back. Give shit, demand love back? That’s not how it works. “But everything we do, we do with good intentions.” Impact weighs heavier than intentions. They prioritize their own wishes over the happiness of their kids. I hate religion, but I like the expression “the road to hell is paved with good intentions”. Something especially boomers will never understand. And sadly many more in this world. Compassion and accepting others for who they are, the way they are and want to be, are sadly rare these days. My goal in life is to show it still exists. And I have many good friends because of it.