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This boomer couple would be hit with $700,000 tax bill if they sold their mansion (www.businessinsider.com)
submitted 1 week ago by DrunkEngineer@lemmy.world to c/aboringdystopia@lemmy.world
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Joel and Kathryn Friedman, both 71, are counting the days until they can sell their home and move into a 55-plus community.

The retired empty-nesters have been ready to downsize for years, but are reluctant to sell their five-bedroom, 5,000-square-foot Southern California house [mansion] in large part because of at least $700,000 in capital gains taxes they estimate they'd have to pay.

Since 1997, home sale profits over $500,000 (for married couples) and $250,000 (for single filers) have been subject to a capital gains tax of up to 20%. That threshold hasn't changed since 1997, meaning that — between inflation and soaring home prices pushing an ever higher number of houses above that limit — many more home sellers have to pay the tax now than when it was first implemented.

The Friedmans are among a growing number of older homeowners discouraged by the tax from selling their valuable properties. Housing economists say that dynamic has exacerbated a shortage of family-sized homes on the market, especially in expensive places like California.

The Friedmans' house is too big for them, and maintenance costs are only rising, Joel said. "There are a million reasons why we'd like to move, but we're not because the tax is just burdensome," he said.

But that could change — there's bipartisan support in Congress for raising the federal tax threshold to boost home sales in a stagnant market.

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[-] LordWiggle@lemmy.world 7 points 1 week ago

I pay zero taxes if I were to sell my house. Because I don't own a house, I can't afford one. I'm forced to rent.

My boomer parents constantly complain their pension is shit. They have to watch their spendings, they tell me. They live in a big house, surrounded by water and nature (in the Netherlands, so expensive AF), with a sailing boat AND an expensive motorboat in front of their house, an SUV and caravan, they completely remodeled their garden including expensive fences, they go on holiday about 5 times a year, they got solar panels and heat pump installed, got a new kitchen, bathroom and toilet, expensive automated sun screens for all their windows (all around the house). But they are treated like shit with their poor pension. My dad bought his first house when he finished his studies, my mom never had to work anymore as my dad made more than enough to support a household of 5, we always lived in middle class neighborhoods, we went to private schools. But they complain they have to buy fuel to come visit me, so they rather have me visit them instead. I live in social housing and struggle every month paying my bills. They never gave me a penny as soon as I left the house as I'm a major disappointment, even though I'm financially and mentally struggling (autism, ADHD, PTSD). They even changed their will because I'm such a disappointment so I will get the bare minimum and my perfect younger brother gets almost everything even though he makes loads of money every month.

I don't give a fuck. I don't want anything from them when they die. I'm not complaining about not getting anything. I'm just complaining their love for me is measured in success and that they are privileged fucks who constantly complain about their sad rich lives while many others are actually struggling and they don't give a fuck about them. They are an example of what's wrong with society. I broke off all contact with them. Fucking boomers. They even turned full right wing racists even though their parents and grandparents fought in the resistance during the second world war and got deported and tortured to death by the nazis in concentration camps.

[-] sploder@lemmy.world 1 points 1 week ago

My mom is the same with the completely outrageous spending on frivolous things but as soon as it comes to visiting me, a 2 hr plane ride, suddenly she guilts me for spending the money. “ I have to stay with you for 15 days because I paid for this $200 ticket and it’s just not worth it if I stay just a couple days like you say I should “ — I’m autistic and NEED my routine and space back after 5 days maximum. She loves to push boundaries to get what she wants : a free stay at my home in a vacation state. I’m constantly telling her no you cannot stay with me for 2 fucking weeks because you feel entitled and live for pushing boundaries.

I’m very fortunate to have found a house while prices were affordable for me. If I had to attempt it now, I’d be up shit creek. Meanwhile she is building a custom 7,000 square foot home, because of course her 4,000 one is just not cutting it anymore … the garage isn’t pretty enough for her $80,000 suv she randomly wanted AND my step dads $100,000 truck he needed afterwards to match her new car .. fucking ridiculous.

[-] LordWiggle@lemmy.world 1 points 1 week ago

My parents live 2h drive away and are already guilt tripping me for that drive. While they would come to me 10% of the time, I had to go there 90% of the time. I'm autistic too, my mom drains me within an hour. No joke.

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this post was submitted on 07 Aug 2025
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