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Can you give a citation from the IRS code for your information?
Depends on if married or single. If single you do not pay capital gains on real estate for anything up to $250K--double that if married. Doesn't seem fair (the marriage benefit).
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Quote:
Originally Posted by Gandalara
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Then came the Taxpayer Relief Act of 1997.
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Yes, it has become one of the great ways to make tax free income. I know many folks moving every two yrs. some just set up an trashed RV on site, hook up utilities, and get their mail delivered to the addy. I'm afraid IRS will be using 'tracking' of cell phone use (towers) and CC receipts to make sure you were actually living there. so Watch out.
It works REALLY well to buy a bigger parcel and sell a $250k chunk off every two yrs. One friend was able to do this 6 times (all tax free)
I will be doing it with another rural rental I purchase tomorrow.
Ownership and Use Tests
To claim the exclusion, you must meet the ownership and use tests. This means that during the 5-year period ending on the date of the sale, you must have:
* Owned the home for at least two years (the ownership test)
* Lived in the home as your main home for at least two years (the use test)
I have a small pension, but no savings, and social secruity and thats' it!
What I've learned is that unless you're a born spendthrift it takes little
money to live very comfortably by staying home to enjoy the peace of
the home you worked so long to pay for. You also have to re-learn a
great deal as to what is and isn't important to YOU and weither or not
it's worth the cost.
Retirement isn't going brain dead. It is an adventure in a new way to live
so make it a good one with money not being everything anymore.
Yes, owning your home is very important for low earners if they are to be able to retire with a decent standard of living. (Compare owning a modest home free and clear with paying half your income for rent.)
But for those who must continue to rent, even frugality won't help them much.
I rent a crappy cold room in an older, small, crowded, amenity-free house with four others. Peace, quiet, and solitude I crave but they are unattainable and I live out my days in great anger.
Yes, owning your home is very important for low earners if they are to be able to retire with a decent standard of living. (Compare owning a modest home free and clear with paying half your income for rent.)
But for those who must continue to rent, even frugality won't help them much.
I rent a crappy cold room in an older, small, crowded, amenity-free house with four others. Peace, quiet, and solitude I crave but they are unattainable and I live out my days in great anger.
Can you qualify for some kind of assisted housing? I am a life long renter. I live off SS and a small pension. My once affordable apartment keeps getting more and more costly with yearly rent increases.
So I have been planning to move to a less expensive city where the COL espcially rents are less expensive. There is also Senior Housing to be considered.
You should not have to live the rest of your days in anger. I hope you can find a way out of this situation.
Can you qualify for some kind of assisted housing? I am a life long renter. I live off SS and a small pension. My once affordable apartment keeps getting more and more costly with yearly rent increases.
So I have been planning to move to a less expensive city where the COL espcially rents are less expensive. There is also Senior Housing to be considered.
You should not have to live the rest of your days in anger. I hope you can find a way out of this situation.
I agree. I would seek senior subsidized housing. My ex-MIL lives in a very upscale one in CA. The ones near me in this high density college area are also very nice, in nice towns with lots of cultural amenities. Go to your local senior agency right away and find out how to apply. There's usually a waiting list but apply to as many as possible and grab the soonest one. You deserve your own place no matter how small. They all have kitchens/kitchenettes, a LR, and a BR and bath, all your own. The high risers have elevators and some have courtyards/nice grounds. Don't delay!!
I agree. I would seek senior subsidized housing. My ex-MIL lives in a very upscale one in CA. The ones near me in this high density college area are also very nice, in nice towns with lots of cultural amenities. Go to your local senior agency right away and find out how to apply. There's usually a waiting list but apply to as many as possible and grab the soonest one. You deserve your own place no matter how small. They all have kitchens/kitchenettes, a LR, and a BR and bath, all your own. The high risers have elevators and some have courtyards/nice grounds. Don't delay!!
NEG - You really are a kind-hearted person Good advice.
You know there are parts of the Country where retired folks can not afford to own their own home. My advice is to move to a part of this land where home ownership is low cost. For many years now a lot of retired people were drawn to Florida ( inland) , where cost of living was low and cement slab cinder block houses were cheap.
So many folks have ether lost their home of late , or had to sell everything just to manage the move to a warmer climate. I advise , stay in your own home as long as you can, and get a dog.
There are many homes in FLorida one can purchase at reasonable prices.
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