‘You can imagine how the ability to do business while sitting on your dock increases housing demand’
- The value of the lakeside home has increased from $700,000 to $1.2 million
- The couple has reached the $500,000 married-couple limit for the exclusion of capital gains
- The husband wants to sell and restart the capital-gains exclusion on a new house, but the wife wants to stay
- The husband is concerned about potential tax implications if they are forced to sell in the future
- The decision to sell or stay should consider lifestyle, financial, and health factors
- Making capital improvements can help reduce capital gains tax
- Consider the distance to medical facilities and personal comfort level
- The couple should weigh the pros and cons of selling, including property tax and moving costs
- Ultimately, the decision should prioritize happiness and long-term plans
The value of a lakeside home purchased for $700,000 has now increased to $1.2 million. The couple has reached the capital gains exclusion limit and is considering whether to sell the house to restart the exclusion on a new property. The husband is concerned about potential tax implications if they are forced to sell in the future due to health issues. Factors to consider include lifestyle preferences, proximity to medical facilities, and financial implications such as property tax and moving costs. Making capital improvements can help reduce capital gains tax. Ultimately, the decision should prioritize happiness and long-term plans.
