aquabliss
Well-known member
Talked to a friend over the weekend who has a home in Northpark (might be Northwood - can never keep those straight), and he mentioned that based on recent neighborhood comps, he's right about at the $500,000 gain mark (married and filing jointly) if he sold his home (inc. capital improvements).
He likes his house but doesn't care if it's his forever home and it isn't sentimental for him. He was telling me he plans to sell within the coming months mainly for the purpose of not having to pay capital gains tax in case (or rather when) the house values rise. He basically doesn't mind trading for a house of the same size and similar price to reset his capital gain counter.
He'll of course have to pay closing costs, agent fees, cleaning, fixing, etc. but he thinks it's worth it not to have to pay tax on the next $500k of gains.
What do you guys think about this? Good strategy or not? He mentioned there are very few things in life that you can sell/acquire/gain tax free and it's worth taking advantage of these while they're still available.
He likes his house but doesn't care if it's his forever home and it isn't sentimental for him. He was telling me he plans to sell within the coming months mainly for the purpose of not having to pay capital gains tax in case (or rather when) the house values rise. He basically doesn't mind trading for a house of the same size and similar price to reset his capital gain counter.
He'll of course have to pay closing costs, agent fees, cleaning, fixing, etc. but he thinks it's worth it not to have to pay tax on the next $500k of gains.
What do you guys think about this? Good strategy or not? He mentioned there are very few things in life that you can sell/acquire/gain tax free and it's worth taking advantage of these while they're still available.