Capital gains on a house. When would you sell?

[MrRational]

Originally Posted by whoisjongalt

Capital gains on a house. When would you sell?

Houses aren't investments.
Sell decisions should not be based on tax consequences.

Move (sell) when you have a need to be somewhere else...
or when you need other/more/less space amenities etc.

[mathjak107]

broker fees , closing costs ,moving expenses and setting up a new house will likely cost more than the tax

[NewbieHere]

I think if you sell today, you might net less than what you think you get, not $300k.

[luv4horses]

Capital gains tax rates are actually helpful to the consumer in that they are less than regular tax rates. The problem is that the exclusion has not been raised in at least 25 yrs while home values tend to at least double every 10 yrs.

JP's Real Estate Charts: Inflation-adjusted housing prices

It has been a real treasure trove of tax revenue due to the "tax payer relief" law instituted in the early 90's.

Editted to add: just referencing the chart, not agreeing with all the commentary in the article

[mathjak107]

be aware though . most states do not recognize capital gain rates , so if you have a state tax it may get taxed at regular income rates .

the other problem we have had is large capital gains trip the amt tax wiping out a lot of the benefit of the lower taxable rates on the gain . all other income gets hit with the amt penalty