Musings: Drop gains tax on 2nd-house sale
If the government did away with the capital gains tax on the sale of a second home for people over 65, seniors could finally get rid of that home. Credit: Newsday/Steve Pfost
If the supply of housing on Long Island increased, housing prices would come down. Gov. Kathy Hochul wants to increase the housing supply by building more affordable housing complexes. At the same time, some seniors are holding onto second houses they own because they don’t want to have to pay a large capital gains tax on the sale.
If the government did away with the capital gains tax on the sale of a second home or rental home for people over 65, seniors could finally get rid of that home, save money on the sale, and free up more housing.
Another suggestion: The government could also decide that seniors, while they are still alive, could transfer a second home to their children or grandchildren without their heirs taking on their parents’ carryover cost basis. That’s instead of waiting and keeping their houses so they can pass them on as an inheritance at the stepped-up fair market value — which erases the capital gains appreciation during the parents’ lifetime.
— Elaine Harrison, Eastport
WE ENCOURAGE YOU TO JOIN OUR DAILY CONVERSATION. Just go to newsday.com/submitaletter and follow the prompts. Or email your opinion to letters@newsday.com. Submissions should be no more than 200 words. Please provide your full name, hometown, phone number and any relevant expertise or affiliation. Include the headline and date of the article you are responding to. Letters become the property of Newsday and are edited for all media. Due to volume, readers are limited to one letter in print every 45 days. Published letters reflect the ratio received on each topic.
