While I've done so in the past, I won't enter into the tax discussion as the many discussions on this site have helped educate me on the pros/cons of each, and my opinion has changed as a result.
However the one point that most have failed to grasp is that for many (most?), this is not a money discussion. Most of these "millionaires" would gladly give up the paper profits for the opportunity to keep the property for their children and grandchildren.
Yes, as many have suggested, it is good to have the equity. You can take out a reverse mortgage to make the tax payments, or perhaps get an exemption on higher taxes for one generation. But all these options ultimately result in the property changing hands to someone who is a true millionaire.
Much as I don't like to see it, it's been happening this way for hundreds of years, and no matter what tax program you put in place, inevitably it will happen again.
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