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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 CrimeDad@lemmy.crimedad.work to c/economics@lemmy.ml

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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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[–] CrimeDad@lemmy.crimedad.work 1 points 1 year ago (2 children)

The owner of an apartment is always receiving income from it, either in the form of the rent check or whatever utility it provides for him to keep it to himself.

I don't like land taxes and other property taxes because I don't think there's a good way to apply those taxes progressively. Rather, if we just take the imputed rent of a given asset (land, building, car, etc.) and add that to the taxpayer's income, the the progressive income tax can just do its thing.

[–] DaSaw@midwest.social 0 points 1 year ago

Land value taxation is inherently progressive. That's probably why it's never been implemented.

[–] zurohki@aussie.zone -1 points 1 year ago (2 children)

No, he's receiving value from it. That's not the same thing as income. You can't tax a percentage of value, only actual money.

You're guessing how much rent he could be collecting and taxing a percentage of the imaginary rent payments... You're really bending over backwards here to implement a property tax or vacancy tax but with a bunch of extra steps.

[–] greenskye@lemm.ee 5 points 1 year ago

Wrong. Basically everyone who's ever paid property taxes has been taxed on value. Even though I haven't sold it or nor plan to anytime soon, I owe increased taxes because the estimated value of it has gone up.

[–] CrimeDad@lemmy.crimedad.work 3 points 1 year ago

That's not true. If I receive artwork, a car, shares of stock, room and board, free tuition, etc., then that is income on I which I will owe taxes. Figuring out the value of these things isn't a guess. It's an estimate based on actual market data. It's actually kind of easy in the case of a rental property since the landlord will have advertised the rent amount. So, if he wants to pay lower tax then he can just lower his ask.