alt Hacker NewsWhat happens when you have a capital loss after paying taxes on the gains and then it goes back to the same value you paid taxes on? Do you still pay the tax? Or does it have to go higher than the last highest value you paid taxes on? That seems the fairest option.
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This is a solved problem. When you sell a house in the US, you ahve to determine what your capital gain is for tax purposes. That includes all purchase and selling costs (eg agents fees, transfer taxes, etc). Those are all added to the purchase price to determine your cost basis.
The capital gain is simply the sale price minus the cost basis, which might be a loss.
So if you've paid unrealized capital gains taxes along the way, you either get credit for those taxes already paid (and possibly get a refund if you've overpaid) or they're simply added to the cost basis.
Maybe they will treat them similar to how they treat realized capital losses currently
ideally you should get a deduction in later years
Or, if you have a capital loss this year after paying taxes on gains last year, can you carry back the deduction to last year?