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Landlords should have to pay income tax on their rental properties regardless of whether they're rented out or not. (gothamist.com)

submitted 1 year ago by [email protected] to c/[email protected]

372 comments fedilink hide all child comments

cross-posted from: https://lemmy.crimedad.work/post/12162

Why? Because apparently they need some more incentive to keep units occupied. Also, even though a property might be vacant, there's still imputed rental income there. Its owner is just receiving it in the form of enjoying the unit for himself instead of receiving an actual rent check from a tenant. That imputed rent ought to be taxed like any other income.

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[–] [email protected] 17 points 1 year ago (1 children)

So a less efficient and more complicated land tax? Is there any benefit to this compared to just taxing based on the value?

[–] [email protected] 1 points 1 year ago (1 children)

The idea is to make it financially uncomfortable to retain real estate in a manner that harms society.

[–] [email protected] 4 points 1 year ago* (last edited 1 year ago) (1 children)

That's literally what a land value tax does.

[–] [email protected] 1 points 1 year ago

For as long as I've been alive, one of the lines I've heard is that real estate is always a sound investment. There have also been land taxes for that entire time, most of them being land value taxes. The evidence suggests that the most common form of land value tax, which does not consider how many residential properties an entity owns, is not doing much, if anything, to disincentivize purchasing residential properties as an investment.