Real-estate tax policies: What would McCain and Obama do?

What are the real-estate tax policies of Senators McCain and Obama?

I’m not sure reliable answers are available. Campaign promises are preferences, not contractual obligations. Circumstances — the economy, control of Congress, competing demands — will shape what either wants to do as President as well as what is feasible. But mostly neither has said.

On fiscal policy, they share some positions. Both appear to like balanced budgets, pay as you go and deficit reduction, but both have proposed policy packages that would increase the national debt—McCain more than Obama.

Both urge tax cuts and spending as part of a post-election stimulus package now being worked up in Washington, but with different components and orientations.

McCain now supports continuing the Bush tax cuts that he opposed when they were enacted. Obama supports tax cuts for the majority of taxpayers and tax increases for the top five percent.

The tax positions that both candidates have taken in their stump speeches differ from the positions their campaign staffs and economic advisers advance. Read more

Land tax policies

Readers might take a look at the two presidential campaign websites to see which candidate appears to understand land issues best (or if at all).

Tax policy is often used by the government to discourage and encourage certain behaviors. How each of us defines the best interest of the country determines what our tax-policy preferences are.

But as a general exercise in seeing what we think, what are your opinions on the following “land issues,” as they relate to tax policies:

1.  Capital gains rate for small (say under $2 million) land investments? Lower, higher, same?

2.  Capital gains rate for large land investments? Lower, higher, same?

3.  Do more, less, or same to help second-home ownership?

4.  More generous, less generous, or same federal tax benefits for conservation-easement donation?

5.  Make it easier for individuals to put retirement savings into land through an IRA and other vehicles?

6.  Should certain types of land improvements be expensed rather than depreciated? Is there a public benefit to that position?

7.  Should the dealer tax policy be relaxed, stay the same, or tightened?

8.  Should division be encouraged, discouraged, or left alone? What types of division?

9.  Should 1031 rules be changed to allow/promote deliberate sequential exchanges?

10. Is there a public interest in promoting small-farm ownership and production that would justify tax incentives for such owners and their production?

11. With the backout of timbering on public lands, should tax incentives be offered to private landowners to mangage woods for timber production and provide a break on timber-derived taxable gain?

12. Should building and use restrictions on floodplain, critical habitat (for endangered species) and wetlands be considered a taking and therefore made eligible for tax assistance?

Other ideas? For and against.

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Curtis Seltzer is a land consultant who works with buyers and investors. He is author of How To Be a DIRT-SMART Buyer of Country Property at www.curtis-seltzer.com where his columns are posted. He is also a contributor at www.landthink.com.