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re: Property taxes on unrealized gains?
Posted on 6/1/26 at 12:31 pm to weagle1999
Posted on 6/1/26 at 12:31 pm to weagle1999
Property taxes are based upon the current value of the property.
What you are talking about pertains to capital gains taxes.
What you are talking about pertains to capital gains taxes.
0
Posted on 6/1/26 at 12:34 pm to JohnnyKilroy
quote:
It certainly does.
What would be some examples? Let's say my home's value goes up by 50k this year, what financial benefit did I receive?
Posted on 6/1/26 at 12:36 pm to BuckeyeGoon
quote:
What would be some examples? Let's say my home's value goes up by 50k this year, what financial benefit did I receive?
Your available credit went up. Congrats.
Posted on 6/1/26 at 12:37 pm to weagle1999
Yes and it’s straight up theft.
Posted on 6/1/26 at 12:37 pm to BuckeyeGoon
quote:Collateral.
What would be some examples?
Posted on 6/1/26 at 12:38 pm to NC_Tigah
Loan to Value ratio may now allow you to cancel PMI insurance if you have it if we want to look at immediately available benefits 
This post was edited on 6/1/26 at 12:40 pm
Posted on 6/1/26 at 12:39 pm to Breauxsif
quote:YET. Until Social Security goes belly up in 4 years and they’ll need to get the money from somewhere.
It feels deeply unfair and it's a massive pain point for homeowners but from a legal and structural standpoint, the government doesn't view property tax the same way it views income or capital gains taxes.
Posted on 6/1/26 at 12:40 pm to GoCrazyAuburn
I understand what OP is saying.
It's not the base tax on the value of your house (starting value) that feels like a tax on unrealized gain. It's the increase amount. Any increase is based on a value that is without any transaction associated with it other than the assessment. Feels like tax on unrealized gains.
Although I feel that the assessed value is realized in your net worth, therefore increasing borrowing power and it serves as direct support for sale price increase.
It's not the base tax on the value of your house (starting value) that feels like a tax on unrealized gain. It's the increase amount. Any increase is based on a value that is without any transaction associated with it other than the assessment. Feels like tax on unrealized gains.
Although I feel that the assessed value is realized in your net worth, therefore increasing borrowing power and it serves as direct support for sale price increase.
Posted on 6/1/26 at 12:41 pm to BuckeyeGoon
I'd say there are two major differences:
You're taxed no matter what by virtue of owning property. If you own stock and it's flat you pay nothing, but you will always pay property taxes.
It also works as an unrealized loss, which you can't do with income or stocks. If your property loses value you pay less, even if you haven't sold it.
The problem, of course, is property very rarely loses value much less in assessment.
You're taxed no matter what by virtue of owning property. If you own stock and it's flat you pay nothing, but you will always pay property taxes.
It also works as an unrealized loss, which you can't do with income or stocks. If your property loses value you pay less, even if you haven't sold it.
The problem, of course, is property very rarely loses value much less in assessment.
This post was edited on 6/1/26 at 12:42 pm
Posted on 6/1/26 at 12:44 pm to JohnnyKilroy
Sure so you could borrow more money I guess, that doesnt really offset the new expense of the increased property tax.
Let's say a person's income/expenses is at an equilibrium, and then their property taxes increase, the expectation is they should borrow more money to cover the new property taxes?
The point is if your property's value goes up, you dont naturally gain a way to pay for the increased property taxes. So your living expenses increase without additional income to make up for it.
Let's say a person's income/expenses is at an equilibrium, and then their property taxes increase, the expectation is they should borrow more money to cover the new property taxes?
The point is if your property's value goes up, you dont naturally gain a way to pay for the increased property taxes. So your living expenses increase without additional income to make up for it.
Posted on 6/1/26 at 12:47 pm to MMauler
quote:
You're confusing property taxes with income/capital gains taxes.
No he’s not. Multiple states and assessors are currently taxing their residents every year based upon the fair market value of their homes/properties. It’s ridiculous and getting out of hand. Assessments should be done every three years and based upon upgrades or community development based upon voting.
Posted on 6/1/26 at 12:49 pm to weagle1999
You’re looking at it the wrong way. Property taxes are rent paid to the government for the home you own.
They will also gig you on the capital gains front when you sell it.
They will also gig you on the capital gains front when you sell it.
Posted on 6/1/26 at 12:50 pm to ksayetiger
quote:this needs to change
You NEVER own property. Welcome to America
Posted on 6/1/26 at 12:51 pm to weagle1999
quote:There is a technical argument to be made. But there are two caveats. (1) The feds don't go after property taxes d/t requisite equal apportionment associate w/ direct taxes. (2) With regard to spillover into unrealized portfolio gains at the local level, assuming that is your concern, property taxes have always been viewed as contradistinct from other taxes.
But I haven’t sold the property and don’t plan to sell so I assume I am being taxed on unrealized gains?
Posted on 6/1/26 at 1:02 pm to weagle1999
quote:
But I haven’t sold the property and don’t plan to sell so I assume I am being taxed on unrealized gains?
It’s an ad valorem tax.
quote:
The Latin phrase ad valorem means "according to value." Ad valorem taxes are based on the assessed value of the item being taxed.
Posted on 6/1/26 at 1:02 pm to BuckeyeGoon
quote:
What would be some examples? Let's say my home's value goes up by 50k this year, what financial benefit did I receive?
The younger generations crying because you bought your home for a trade involving a Big Mac and fries and dare want to later sell at FMV.
Posted on 6/1/26 at 1:07 pm to Y.A. Tittle
quote:
I think he's saying, effectively it sort of is really.
Well it was just poorly phrased. There are explicit differences... we have just managed to keep one of them at bay.
So far.
Posted on 6/1/26 at 1:08 pm to CleverUserName
my FMV has went up over 250k in the last 7 years. I have no problem with increased property taxes if it’s justified but basing increases on FMV is going to kill homeowners eventually. The market is out of control.
This post was edited on 6/1/26 at 1:09 pm
Posted on 6/1/26 at 1:14 pm to ksayetiger
quote:
You NEVER own property. Welcome to America
And freedom here is only an illusion. Test it and see.
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