ps99472
New member
So lets say hypothetically a homeowner couple is approaching the 2 year anniversary COE of their primary home. In that time, home has appreciated a good chunk, close to the max $500,000 exclusion on capital gains allowed by IRS and state of CA:
http://www.irs.gov/publications/p523/ar02.html#en_US_2013_publink1000200709
What would you do? Being able to retain that much money tax free seems like a no brainer for the homeowners to cash out. Then what? Rent back from the buyers while you wait to buy another house? Buy some Tesla's and drive across the US and home-school your kid(s) in the Tesla X back seat? Use the gains to buy another downsized home as a 100% FCB and live mortgage free for the rest of your life?
So if you play it safe and not sell your home..... extra cushion in case you ever lose a job or your spouse, and worst scenario you die or get really sick. You'll also establish good roots for your child living in a good community by not moving. But you'll always wonder about the road not traveled...
Again the money so enticing...
http://www.irs.gov/publications/p523/ar02.html#en_US_2013_publink1000200709
What would you do? Being able to retain that much money tax free seems like a no brainer for the homeowners to cash out. Then what? Rent back from the buyers while you wait to buy another house? Buy some Tesla's and drive across the US and home-school your kid(s) in the Tesla X back seat? Use the gains to buy another downsized home as a 100% FCB and live mortgage free for the rest of your life?
So if you play it safe and not sell your home..... extra cushion in case you ever lose a job or your spouse, and worst scenario you die or get really sick. You'll also establish good roots for your child living in a good community by not moving. But you'll always wonder about the road not traveled...
Again the money so enticing...