<p>Ouch.</p>
<p>[CBJ:</a> Owners of Second Homes: Beware of New Tax Laws | Charlottesville Daily Progress](<a href=“http://www.dailyprogress.com/cdp/business/real_estate/article/cbj_owners_of_second_homes_beware_of_new_tax_laws/32502/]CBJ:”>http://www.dailyprogress.com/cdp/business/real_estate/article/cbj_owners_of_second_homes_beware_of_new_tax_laws/32502/)</p>
<p>I’m aware of this law for a while so that is why home prices will go down, at least that is my forecast for my area. I think this bill was passed for the $700B the bail out.</p>
<p>Well, instead of selling you can always refi and still get most of the money taxfree.</p>
<p>Darn, I am in the market for a winter home too. Now that complicates things. </p>
<p>I don’t understand the refi scenario, don’t we loose money to interest ?</p>
<p>But for some people they keep moving from vacation home to vacation home and live for 2 years to get the $500K capital gain exclusion. They no longer able to do that anymore.</p>
<p>This rule has a significant impact on me. When we moved away from Chicago last year, the market was slow and we couldn’t sell the house. So we just rented it out and plan to sell it sometime when the market is better. The capital gains taxes I owe should be calculated from the increase in value from the time I moved away from the house. </p>
<p>Now I have to pay capital gains based on the time I don’t live in the house but the gains are calculated from the very beginning I owned my house, rather than the time I moved away. I owned my house for a long time and the capital gains from the beginning are substantial. Bleh.</p>
<p>Munchkin, it will be prorated, I’m sure. So you will be minimally affected. But starting 2009, it will be in full effect for now home buyers of second home.
Have you thought about LV. Prices are down pretty cheap there. It’s pretty warm I think. In fact, too warm in the summer.</p>
<p>^Thanks, Columbia_Student ! I was freaking a bit there. I hope there will be some kind of prorating involved, else that will really impact us negatively. 
Not that I mind paying my share of taxes, but I hate having the rules change midstream and not having planned for it. </p>
<p>I like LV but the husband was adamantly opposed. We compromised on San Diego. Maybe Murrieta ? - apparently it’s equidistant from LA, LV & SD … and very cheap. </p>
<p>Just spoke to a friend living in Sacramento - she said prices are very good there too. But Sacramento maybe a bit too cold for me. I am going to have a home in Vancouver, Canada and Sacramento don’t seem like that much of a difference weather wise, kwim ?</p>
<p>I own three homes (and three mortgages:) ), however I do not think this new law will change anything for me. I have always lived in my primary residence home and the two additions were always second homes. Correct me if I am wrong, please…</p>
<p>What I have never liked is the fact that my county taxes are double for my second homes. Jus a scheme to make more money…</p>
<p>There are a lot of people who have 1031ed into investment properties which were subsequently converted to personal residences. This change in the tax law will foil these folks’ plans. To me, the key to good tax policy is predictability.</p>
<p>I never use the term “folks”. Don’t know what just happened to me.</p>
<p>Umm, Sacramento has 100-110F in the summer, Vancouver is lucky to hit 85F on a hot spell.</p>
<p>Having lived within an hour of both cities, though, I would pick Van over Sac!</p>
<p>^My primary residence is going to be in Vancouver, and I am looking for a place to winter, perhaps San Diego. Vancouver though relatively mild is still too cold in winter. I am looking for a place that is warm Nov - April. That is the plan anyway. What was that saying again ? … God thought it was a very funny joke when man make plans, something like that…</p>