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Tax Rate Uncertainties Lead to High-End Home Sales

Higher capital gains tax rates, possible income tax increases on wealthy have some spending in real estate.

Many high-end Hamptons homeowners are rushing to sell their homes before an expected increase in tax rates at the end of the year, according to a New York Daily News article.

With capital gains taxes expected to rise 5 percent on long-term investments and rates expected to jump much higher on short-term investments, some sellers believe that cutting prices on their home now to lure eager buyers is the right way to go.

"Real Housewives of New York" star Kelly Bensimon recently chopped the price of her East Hampton home from $12 million to less than half, The Daily News reported earlier this week. It sold for $5.75 million.

The debate over the country's debt ceiling, or the "fiscal cliff," has thrown even more uncertainty into the conversation, as higher income tax rates on the rich remain a possibility in the future.

“They know they lose money if they wait till next year,” one broker told the Daily News.

Click here to read the article from The New York Daily News.

Do you plan on dropping the price of your home to hope it sells before the end of the year? Are you a buyer taking out funds to purchase a home before Jan. 1? Let us know in the comments.

Preliator December 08, 2012 at 12:53 AM
But he is not doing that HHS, he ignored his own commission and I have seen nothing in the news indicating he plans on following any of its recommendations. If the President has proposed spending cuts fine, what are they? How will the extra revenue be used to pay down the debt if we continue to borrow .40 cents of every dollar the government spends? Substantive questions: you do not think the Federal government operating with out a budget for four years is bad? You do not think the President seeking to be the decider on raising the debt limit is bad? Common, I have no doubt you are an intelligent person, you can not tell me these are not concerns to some degree?
highhatsize December 08, 2012 at 01:16 AM
Not passing a budget is symbolically bad but pragmatically irrelevant. Continuing resolutions keep the government functioning just as well as a formal budget. I don't think that there should be any national debt ceiling since refusal to authorize debt payments would throw the federal government into default, a catastrophic event that is insane to permit under any circumstance. Here's a link to the latest discussion of Democratic spending proposals that I can find.* "I" am not opposed to increased spending cuts (such as raising the social security age qualification) but not to social welfare programs for younger Americans. * http://mediamatters.org/research/2012/12/07/fox-news-papers-over-obamas-proposed-spending-c/191748
John Gruber December 12, 2012 at 08:00 PM
again Preliator, republicans have increased entitlement spending at a higher rate than democrats over the last 30 years . In fact our last republican president increased entitlement spending by more than any president in history.
Preliator December 12, 2012 at 08:37 PM
All I know is that we are heading into trouble, you can not borrow 40 cents of every dollar you spend, you can not keep spending money you do not have, you can not keep these programs as they are and expect them to remain solvent and you can not tax people into oblivion and expect it all to work out. We are committing generational theft, we are stealing money from children who have not been born and leaving them a huge burden. It is a sin, it is a crime, it is one generation living well beyond its means and leaving the bill for the kids to pay. We could seize all the wealth of the top 2%, every dime, and it will not make a dent in the collective issues we face. I don't care what party you are in, what you believe but we can not continue down this path and expect to survive as a nation. It may not affect us, it may not affect our children but the day is going to come when some one has to pay for the things that have been done.
lifeamongtheordinary December 21, 2012 at 02:26 PM
Debate ... about the fiscal cliff? "The Republican Party must learn to increase the size of the tent. In the process it must transform itself. ... America needs two strong national parties, if for no other reason than each to keep the other honest and in check, not permitting the more powerful of the two to slide toward despotic rule." Read more at http://lifeamongtheordinary.blogspot.com/2012/12/tolerance-and-inclusion-part-one.html

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