Top Five Places to Retire--Where Would You Go? Stay?

[KiwiKate]

Originally Posted by newenglandgirl

I'm curious about capital gains when you sell before the two-year period of owning a place. Did you have to pay that?

If you reinvest your gains in another property you don't pay capital gains tax. And you have a one time exemption from capital gains -- it was $250,000 the last time I checked.

[MadManofBethesda]

Originally Posted by KiwiKate

If you reinvest your gains in another property you don't pay capital gains tax. And you have a one time exemption from capital gains -- it was $250,000 the last time I checked.

It must be some time since you checked because the law you quoted above was superceded in 1997 or so. (I don't feel like checking on the exact date.) You can now use the $250k exemption ($500k for couples) as often as you like, but no more than once every 2 years.

[KiwiKate]

Originally Posted by MadManofBethesda

It must be some time since you checked because the law you quoted above was superceded in 1997 or so. (I don't feel like checking on the exact date.) You can now use the $250k exemption ($500k for couples) as often as you like, but no more than once every 2 years.

You're right -- many years since I checked. Was just trying to respond to NEG's concern about capital gains.

[dmiller91]

IF you have a capital gain. In this market that is exceedingly difficult.

[Escort Rider]

Originally Posted by dmiller91

IF you have a capital gain. In this market that is exceedingly difficult.

Depends on when you bought. If you bought between 2003 and 2007 (roughly), then you are right. I bought in 2001 and I could realize a capital gain if I sold tomorrow. Lots of people have owned their homes far longer than I have - they would all realize a capital gain if they sold now.