Tax Bill Roller Coaster
This is exciting…and scary…like a roller coaster. This tax bill, should it pass is expected to cause a surge in the economy overall. However, real estate will take a hit. We’ve all been focused on the mortgage deduction, which will have some effect on Colorado. The one we haven’t noticed is the proposal to raise the 2 year owner occupancy “rule” to 5 years. Currently, if you sell the house you lived in for at least 2 years, you pay no tax on the gain. That may now require you live there for 5 WHOLE YEARS. Ouch! House-hacking just got less desirable. I’d start a letter campaign, but somehow I don’t think the real estate investor’s desire to take advantage of this loophole will get much sympathy.
Spotlight on Colorado Springs rental market
The Colorado Springs rental market is looking better than ever. 5 military bases, a growing economy and 4% vacancy rates. Not much else to say, except our standard reminder, “always due your due diligence!”
“Happiness lies in the joy of achievement and the thrill of creative effort“
Read the full newsletter here: 2017.12.08 – Friday Flyer