So you are using your own isolated case to feed a narrative that implies the tax really doesn't affect anyone, which begs the question then way implement it at all?
Are you saying that it won't affect anyone just because for whatever reason it doesn't affect you?
Skoob, first, I am not an accountant. But from what I understand, on a personal basis, on capital gains usually you were only taxed on 50% of those gains ie. 50% of your capital gains became income and taxed accordingly. However on a personal basis, there is a 250,000 buffer for personal. So if you made 600,000 capital gains you would be taxed normally on the 500,000 (using your personal 250,000) and on the remaining 100,000, 2/3 would be taxable. So 66,667 would be taxed, an increase of 16,667 of income. But, for corporations the 2/3 starts from dollar one, no 250,000 buffer.
So when
@jalimon sells his building, unless he has over 500,000 capital gains on an 850,000 sale, it won't affect him at all .... no avoidance. And if he does have over 500,000 capital gains like eg. 600,000, what I say, is good for him. So bottom line if his capital gain is 600,000 then at a 50% tax bracket the extra tax would cost him an extra 8333.50 in taxes .......... big deal.
Your begging question is answered. Why implement it all, well using my example, every 1000 sales like that would generate $8,333,500 without much impact at all to people like jalimon.