Re: flip tax | <– Date –> <– Thread –> |
From: jkgonzalez (jerrycommunicatingwithcompassion.org) | |
Date: Wed, 14 Feb 2007 06:19:16 -0800 (PST) |
I want to check my understanding of the transfer fee formula based on the difference between purchase and sales price less improvements. If I bought the house for $135,000, put $65,000 of improvements on it and sold it 12 years later for $300,000, then the formula: ($300,000 -$65,000)- $135,000 = $100,000 * 3% = $3000 And a house bought 2 years ago for $260,000 and sold for $280,000 after $10,000 of improvements would net $300. Is that right? And a follow up question: What defines an improvement? How do you put a value on improvements? Some improvements are made by the owner's sweat equity. Improvements usually don't raise the value of the house by the amount spent on the improvement. Jerry Koch-Gonzalez Pioneer Valley Cohousing Community, Amherst MA -----Original Message----- From: Sharon Villines [mailto:sharon [at] sharonvillines.com] Sent: Wednesday, February 14, 2007 8:19 AM To: Cohousing-L Subject: Re: [C-L]_ flip tax On Feb 13, 2007, at 12:09 AM, David Heimann wrote: > was only after the proponent was willing to call it a "transfer fee" > that > it began its slow tortuous road to adoption. "Transfer fee" is the standard name for this. And the argument for it in cohousing is even greater than in a conventional condominium because 1. Any transfer of ownership is a burden to the community. It makes work. As much as we have gotten wonderful people in move-ins it is work for us to orient them, educate them, get them up to speed, and help them get settled. It is not easy. 2. Because the larger community is so involved in creating and supporting property values, it seems only reasonable that they should share in the gains. One thing I liked in the proposals that went by was basing the fee on the difference between the purchase price and the sale price less improvements. A transfer fee based on sale price would not be equal, I don't think, in our community. Property values have risen such that the units of people who moved in seven years ago have tripled but those of people who moved in two years ago, paying the doubled or tripled value already have not increased. So a 3% fee for them would be a significant problem unless it was based on the difference between purchase and sales price less improvements. We don't have such a fee and it would take probably 2 years to get consensus on it but some of those who have moved have voluntarily made significant donations to the capital improvements fund. Sharon ----- Sharon Villines Takoma Village Cohousing, Washington DC http://www.takomavillage.org _________________________________________________________________ Cohousing-L mailing list -- Unsubscribe, archives and other info at: http://www.cohousing.org/cohousing-L/
- Re: flip tax, (continued)
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Re: flip tax Lynn Nadeau, February 12 2007
- Re: flip tax Michael Barrett, February 12 2007
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Re: flip tax David Heimann, February 12 2007
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Re: flip tax Sharon Villines, February 14 2007
- Re: flip tax jkgonzalez, February 14 2007
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Re: flip tax Sharon Villines, February 14 2007
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Re: flip tax Lynn Nadeau, February 12 2007
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Re: flip tax Oliveau, February 13 2007
- Re: flip tax Raines Cohen, February 13 2007
- Re: flip tax Oliveau, February 13 2007
- Re: flip tax Dave and Diane, February 15 2007
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