[lbo-talk] Alas, poor Citibank!

[Jordan Hayes]

>> So this is the classical "fixed capital"?
>
> Yes. Though in the capitalist mind, capital yields a stream of
> profits, and a house doesn't.

In the US, a house (for personal use, investment property is 
different!) isn't really an "investment" at all -- it has some 
tax-treatment similarities (i.e., you get taxed on any gain when you 
sell, and you can lower that gain by making additional investments; 
also you can deduct interest paid on a mortage [within limits]), but 
mostly it's just a cost of living.

Two big differences:

- You can't depreciate a house
- You can't deduct a loss on a house

/jordan