FYI: Real Estate
Interested in how Question 1 affects selling homes?
Here's what you should know:
Question 1 will ensure that people who have over $1 million of personal taxable income in 1 year pay their fair share in taxes. How does that affect people who sell a house?
The short answer is that almost no one who sells a house will be affected in any way.
Last year, less than 1 percent of home sales in the state generated enough of a gain to be affected by Question 1. Just 895 homes out of 100,000 sold, to be exact. That's because it's the gain in value since the house was originally purchased, not the full sales price, that is subject to income tax. Plus, home sellers can take advantage of multiple tax deductions to reduce their income tax burden:
Someone selling a home can deduct up to $500,000 from their taxes on the sale of their primary residence.
They can also deduct the entire cost of a renovated kitchen, an updated heating system, a new roof, or any other major improvements they made to the home.
With those deductions, in order for a home seller to actually have $1 million in taxable personal income from the sale of a home, they would need to sell the home for at least $1.5 million over the price they originally bought it for. Only people selling the very priciest homes in Massachusetts would see their incomes rise enough to pay a single penny more with the Fair Share Amendment.
What’s more, many people are really struggling in MA—and they’re not the people selling $1 million homes. Question 1 will ensure those of us who are working hard to get by without making over $1 million a year have access to better roads, schools, colleges, and public transit. That’s what we’re fighting for.