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Re:Why a house is a terrible investment (2013) by timr on Sunday April 22, 2018 @08:51PM (#16899700)
This is excellent analysis. Every one of the bullet points is correct, and you've picked one to debate (and misinterpreted the argument): relative to virtually every other investment you can make, homes are heavily taxed. Arguing that you can (possibly) deduct some of those taxes misses the point. I don't have to pay my state and local governments annual taxes on the stocks and bonds that I own.

On average, homes in the US appreciate at about the rate of inflation, and the choice to rent vs. buy is favorable in some markets, unfavorable in many others. It's nowhere near as clear-cut as the comments in this thread would lead you to believe.

Re:Why a house is a terrible investment (2013) by sulam on Sunday April 22, 2018 @08:59PM (#16899723)
I recently sold and bought a house, and as far as I know I paid no taxes on it, and I am still deducting mortgage payments. I could pay off my mortgage tomorrow (it's Sunday here, so I'd have to wait for my bank to open) but my accountant tells me that's a horrible idea.
Re:Why a house is a terrible investment (2013) by DrScump on Sunday April 22, 2018 @09:04PM (#16899745)
In the USA, you would face capital gains taxes if your sales basis was greater than your cost basis.
Re:Why a house is a terrible investment (2013) by pragmatic on Sunday April 22, 2018 @09:08PM (#16899764)
Do I have to pay taxes on the profit I made selling my home?

It depends on how long you owned and lived in the home before the sale and how much profit you made. If you owned and lived in the place for two of the five years before the sale, then up to $250,000 of profit is tax-free.

If you are married and file a joint return, the tax-free amount doubles to $500,000. The law lets you "exclude" this much otherwise taxable profit from your taxable income. (If you sold for a loss, though, you can't take a deduction for that loss.)

Re:Why a house is a terrible investment (2013) by DrScump on Sunday April 22, 2018 @09:17PM (#16899797)

  up to $250,000 of profit is tax-free
You get that exemption once in a lifetime. (If you are married filing together, that's once for both parties.)

If your profit isn't 6 figures, choose this option carefully.

Re:Why a house is a terrible investment (2013) by meritt on Sunday April 22, 2018 @09:44PM (#16899909)
Under current law, you can take the exclusion every two years: https://www.irs.gov/publications/p523#en_US_2017_publink1000...

Are you referring to the over-55-once-in-a-lifetime exemption that was replaced in 1997 with the introduction of the Taxpayer Relief Act? https://en.wikipedia.org/wiki/Taxpayer_Relief_Act_of_1997

Re:Why a house is a terrible investment (2013) by sulam on Monday April 23, 2018 @04:39AM (#16901622)
This is incorrect.
Re:Why a house is a terrible investment (2013) by Spooky23 on Monday April 23, 2018 @07:39AM (#16902475)
Not since the 1980s.
Re:Why a house is a terrible investment (2013) by dman on Sunday April 22, 2018 @09:00PM (#16899730)
How long did you hold it? Where was the home located?
Re:Why a house is a terrible investment (2013) by sulam on Sunday April 22, 2018 @09:03PM (#16899741)
I sold my primary residence after buying a new primary residence. California.

Homes are heavily taxes if you don't live in them, to the above poster's point.

Re:Why a house is a terrible investment (2013) by DrScump on Sunday April 22, 2018 @09:05PM (#16899750)
Then you face capital gains taxes if your home appreciated over your cost basis.

Property taxes also apply to home ownership.

Re:Why a house is a terrible investment (2013) by sulam on Monday April 23, 2018 @04:39AM (#16901617)
Capital gains didn’t apply because of the unique rules around primary residences — our new home cost more than the old. In fact it’s better than other investments in this particular way!

Regarding property tax, yes, but dividends are taxed as well and you generally are going to pay capital gains in the specific situation I’m describing if you replace “primary residence” with “stock”. Primary residences with mortgages have better tax treatment, really. If it didn’t I wouldn’t have a mortgage.

Re:Why a house is a terrible investment (2013) by dman on Monday April 23, 2018 @01:39PM (#16905612)
I like to think of this as the Government encouraging you to pay more in recurring taxes by waiving a one time tax - you did end up increasing your exposure to the real estate market and your annual property taxes through this transaction.
Re:Why a house is a terrible investment (2013) by timr on Monday April 23, 2018 @12:18AM (#16900490)
Yeah, the parent is being willfully obtuse. Property taxes are taxes that you have to pay merely for holding your investment.

Until this year, you could deduct those taxes up to your total federal tax liability (which may be what the parent is saying), but now you're limited to $10,000. Either way, it's a lot more burdensome than most investments.

Re:Why a house is a terrible investment (2013) by asahi23 on Sunday April 22, 2018 @09:05PM (#16899754)
In the USA, if you live in your home for 2 out of the 5 years prior to selling, you can qualify to pay 0 capital gains tax up to 500k if you're married and filing a joint return (250k if single)