> This is backwards. Such a tax will be a strong incentive to never ever sell since the seller would hand off all gains to the tax man. Who would want to sell?
Good point, thanks for the criticism. There are many ways to solve this problem.
> Instead, you'd want to actually incentivize selling if you're not living on the property. Make the capital gain tax very low, that makes selling it off the most attractive option.
No.
First, that incentivizes treating property as an appreciating asset.
Second, fuck low taxes on capital gains, period. The tax rate on any capital gain should not be lower than the highest rate on labor. Ever.