The Shock of Sweden's Housing Market Is Hitting the Country's Currency

Re:The Shock of Sweden's Housing Market Is Hitting the Count... by bzbarsky on Friday November 17, 2017 @01:44AM (#15719631)

I'm looking at the exact same source you are. What part of what I said is not correct, exactly? The capital gains are $1 million. $500k of it is excluded (assuming you're married filing jointly). The rest gets taxed.

If you think that's incorrect, what do _you_ think happens with taxes when selling a home for $2 million that was bought for $1 million?

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Re:The Shock of Sweden's Housing Market Is Hitting the Count... by mbesto on Friday November 17, 2017 @05:00PM (#15726348)

> I said = 2017 - Sell house for $2M

> I said = 2017 - Buy new house for $1M

> you said = But it might be (for the "buy new house") $1.6 million, not $1 million, in your example...

> I said = so they can still afford it.

> you said = You don't get to keep the whole $2M. That's the point.

So, let's do this again.

1. Sell house for $2M

2. Buy house for $1.6M as you suggested

3. Congrats you now have $1.6M in illiquid assets and $400k in liquid assets (cash)

Note - I recognize that my original example was buy at $1M and sell for $2M, where you are correct you're not taxed on the first $500k and the remaining $500k is taxed at capital gains. I also recognize that this whole scenario is purely illustrative and doesn't take into acount all of the transation fees.

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