Okay that makes sense but why are there taxes on homes being sold? shouldn't all the money go to the owners of the property, especially since they paid full price when they bought the place. how does it work?
You are viewing a single comment's thread from:
Let's say you pay $100K to buy the house. Years later you sell it for $250K. You pay taxes on the capital gains, the additional $150K in increased value. It's the same concept for stocks and crypto.
Oh I get it now, so the tax is on the profit not the whole amount. I guess that makes sense in a way, in other ways, the government is just looking for any means to collect our money. Sigh!