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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.

Hazel Wilkonson the First December 05, 2012 at 07:39 PM
good. happy to see them go.
tm December 05, 2012 at 08:29 PM
its basically the same people coming in.
Preliator December 05, 2012 at 08:32 PM
Interesting.
Mike Kazickas December 05, 2012 at 08:45 PM
Half the asking price??? Some other factors in play here. Doesn't seem to make much sense
the owl December 06, 2012 at 02:14 PM
Good luck to all, buying, selling, whatever. But most of all....let them pay appropriate taxes then we all gain.
Jaguar-Guy December 06, 2012 at 02:38 PM
Big confidence in Obama's campaign statement "I will not let that happen" - going over the cliff.
Richard Rodriguez December 06, 2012 at 05:05 PM
More mcmansions on the market,houses they couldn't afford in the first place. I know of one house been on the market 6yrs One reason $$$$ the other is that it looks nothing like any of the houses in the area,stupidity or arrogance. What a waste of farmland. Sad...
Rose Way December 06, 2012 at 06:06 PM
So, let me get this straight...Kelly Bensimon cut the price on her home by $6 million to save herself from having to pay an additional 5% cap gains tax on the $12 million??? Hmmm...me thinks she needs a basic course in multiplication. On the subject of taxation...when will the GOP get the message that poor and middle class Americans will no longer pay the taxes of the rich??? When Romney's secretary's taxes are 40% higher than his, there's something wrong with the system and it is not very likely that the GOP - bought and paid for by the likes of the Koch brothers and their uber-wealthy playmates - will ever have the solution. The mid-term elections are coming...good bye GOP majority. We need government that can remove themselves from the pockets of the wealthy who run them and their own personal agendas in Washington...we need an AMERICAN SPRING!
Preliator December 06, 2012 at 07:16 PM
American Spring? Really? In that context lets review the Arab spring: 1. Al-Qaeda over ran our consulate in Libya and killed four Americans 2. In Libya our President tried to secretly get weapons to rebels and they ended up in the hands of terrorists; country still a mess 3. Egypt has elected a radical Islamic to office who is trying to seize power and become dictator in all but name 4. In Syria a dictator has slaughtered 30,000 of his own people and is readying chemical weapons 5. Tunisia, where the Arab Spring came to life, is still a mess 6. Just for kicks, some of the radicals now in power in Egypt think things like the Pyramids are an affront to Islam and should be destroyed 7. We still send billions to nations that hate us while our citizens suffer 8. Hamas, the terrorists elected to rule Gaza have fired thousands of rockets into their neighbor We don't need an American Spring"...we have these things called elections; peaceful, stable and accepted. As for taxes...well, you can tax all you want it won't cover the money Obama and his troop of leftest want to spend, it won't cut the deficit, it won't fix entitlements and it will not pay off the debt. Punish the rich all you want, they'll still be rich but you are doing damage to the economy and the country.
obama bin lyin December 06, 2012 at 11:57 PM
rose way you are a true leftist who is so ignorant.Wake up and smell the coffee,this country is in the shitter.GOD BLESS US ALL.
highhatsize December 07, 2012 at 03:19 AM
MORE jeremiads by lunatic right wingers. How many months (or years) will have to elapse before they get over their catastrophic election loss and cease their gleefully baleful predictions of death and destruction? This forum is a poor substitute for professional help. Let's hope that their families commit them to locked psychiatric facilities before they drive everyone ELSE mad with their boring repetition.
Arnold Timer December 07, 2012 at 04:21 AM
Well said. Dont hold your breath regarding their families committing them. The fruit generally falls close to the tree...
Preliator December 07, 2012 at 11:55 AM
Please Highhatsize, in your endless wisdom and knowledge, explain how the higher taxes on the 'rich', people making over $250k is going to: cut the deficit cut the debt improve medicare improve medicade improve social security will do anything more than suck money out of the economy Tell us how more blind dumb spending as opposed to serious reforms will do anything. I am all for increased revenues, but tell me why I should think Barack Obama who is spending money at twice the rate of G.W. Bush ( and he called that unpatriotic) is going to improve anything. The President has not told me what it will do, he has no plan other than tax and spend. So what magic combination of things is going to make anything better for anyone? Do you think it is right and proper for the President to seek more power in having the power to raise the debt limit alone, on his own, completely removing Congress from the equation? Do you think it okay for this country to operate with out a budget for the past four years and unlikely to have one for four more? How about the reason for Obama ignoring his own debt commission and jobs council? Or do you think just being an arrogant prick and mindlessly insulting people in the manner christie nichole is a way forward? I look forward to your non-answer and worthless insults.
highhatsize December 08, 2012 at 12:31 AM
to Preliator: Your post manifests precisely the mentality to which I am referring. However, to answer your one substantive question: Yes, I think that raising government revenues will decrease the deficit and debt. Your implication that the President's proposal does not contain any spending cuts is utterly false. Specifically, I think that a compromise that embodies the Simpson-Bowles Debt Reduction Plan is the way to go.
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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