Year 2011 – The Pending Rise of Long-Term Capital Gains Tax Rates and Its Impact on Real Estate Prices
Tuesday, July 1st, 2008Over twenty years ago, the US experienced a capital gains situation similar to the one anticipated to occur two years from now, in 2011. In 1986, the long-term capital gains tax rate was increased from 20% to 28%, an increase of 40%. Investors, anticipating this occurrence, reacted in 1985 by selling off properties. The result was an approximate 80% increase in capital gains tax revenue that year. Due to the abundance of supply over demand, prices for commercial real estate were driven lower. It is our opinion that if capital gains tax rates increase in 2011, history may once again repeat itself in 2009-2010…
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For more information about this article, please contact:
Bret Hardy, CPA
IRES Managing Director
865 S. Figueroa St., Suite 3500
Los Angeles, CA 90017
213.861.3321
bret.hardy@colliers.com
Wilma Warshak, SIOR
Senior Vice President
601 Union St., Suite 5300
Seattle, WA 98101-4045
206.409.1432
wilma.warshak@colliers.com