Quote:
Originally Posted by FlyingScot
Not really true.
The increase in tax bills is nothing compared to the run up in land values. It's not that the family can't afford a few thousand per year in increased taxes, it's that they are looking at land they don't use all that often that's now worth a couple of million. Their lake house may be the majority of their net worth, and they need cash!
And when we say can't afford to leave their home to their kids due to tax burden--the total tax bill is lower if you die while owning the home. If you sell towards the end of your life, you owe capital gains. If you leave the home to the kids, the cost basis resets and there is zero capital gains tax if they decide to sell quickly.
The real issue is the opportunity cost--there are a lot of other things that could be done with the money
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Gentrification. Only so many lakefront lots.