Getting ready to sell my house in hot zip code that I bought in 1992. Despite needing some pretty extensive renovations, should get between four and five times what I paid for it. New place to live not a problem because I am moving back to home town and will be living in deceased Aunt’s house to help my disabled cousin be anle to afford to stay there. He lives in a garage apartment behind the house that is actually bigger than the house. Will be back home and only a few blocks from my mom and sister.

Best wishes Melissa on the house sale and your new place and start. And to be near family. Sounds like a great thing all around. God is good! Blessings.

Congratulations. That sounds like the perfect situation for the current real estate market.

Selling a spare house right now is fantastic. You'll make tons of money.

But selling your only house, while also trying to turn around and buy a new one... not so much. The profit you make ends up having to be dumped right back into fighting for a new place.

quote:

Originally posted by RogueJSK:
Congratulations. That sounds like the perfect situation for the current real estate market.

Selling a spare house right now is fantastic. You'll make tons of money.

But selling your only house, while also trying to turn around and buy a new one... not so much. The profit you make ends up having to be dumped right back into fighting for a new place.

I was going to say the same thing - congratulations - but also a question:

Is there any way to avoid the tax implications of not re-investing in another primary residence? I mean it's a good problem to have, just wondering if there is any way around it?

quote:

Originally posted by BamaJeepster:

quote:

Originally posted by RogueJSK:
Congratulations. That sounds like the perfect situation for the current real estate market.

Selling a spare house right now is fantastic. You'll make tons of money.

But selling your only house, while also trying to turn around and buy a new one... not so much. The profit you make ends up having to be dumped right back into fighting for a new place.

I was going to say the same thing - congratulations - but also a question:

Is there any way to avoid the tax implications of not re-investing in another primary residence? I mean it's a good problem to have, just wondering if there is any way around it?

Currently as long as you are under $250,000 capital gains and single it is exempt. I paid $49,000 for the house.

quote:

Originally posted by MelissaDallas:
Currently as long as you are under $250,000 capital gains and single it is exempt. I paid $49,000 for the house.

That is awesome! Score!!

And you get out of Dallas County, added bonus.

quote:

Originally posted by BamaJeepster:

quote:

Originally posted by RogueJSK:
Congratulations. That sounds like the perfect situation for the current real estate market.

Selling a spare house right now is fantastic. You'll make tons of money.

But selling your only house, while also trying to turn around and buy a new one... not so much. The profit you make ends up having to be dumped right back into fighting for a new place.

I was going to say the same thing - congratulations - but also a question:

Is there any way to avoid the tax implications of not re-investing in another primary residence? I mean it's a good problem to have, just wondering if there is any way around it?

My understanding of the law over the past couple of decades is that the sale of a primary residence with capital gain is usually treated as a non-taxable event, the basic standard being that you resided in the home for two of the previous 5 years.

Used to be a requirement for reinvestment in another primary residence of equal or greater value within a specified period of time (two years?), and the tax-free capital gain provision was limited to once per lifetime.

Not anymore. You can do it again and again, provided you comply with the "primary residence" standards of occupancy and use.

quote:

Originally posted by Ox190:
And you get out of Dallas County, added bonus.

Well, Denton is a big improvement in a lot of ways, but with two colleges they work very hard to be “California-ized.” The fun part is going to be finding a job and not having to commute. I want an in-town job.

That's great -- I hope you have a well designed plan for what to do with the proceeds.

It's basically equivalent to winning a large lottery drawing.

Please don't be one of the YOLO people who are poor half-dead in a ditch 2 years later...

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quote:

Originally posted by Sig209:
That's great -- I hope you have a well designed plan for what to do with the proceeds.

It's basically equivalent to winning a large lottery drawing.

Please don't be one of the YOLO people who are poor half-dead in a ditch 2 years later...

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I am very conservative money-wise and have always lived below my means. I figure if I am living by myself (without sharing expenses with cousin) I need about $1000 a month to supplement Social Security. I also have a fair amount in bank and retirement savings. Aside from doing a few things to the house I don’t intend to spend any of it. My sister, cousin and I are all childless and “end of the line.” We intend to go to the estate planning lawyer to make sure we take care of each other. If my cousin dies he will leave the house to me. St some point (although my mom’s family has some long-lived folks)I will also inherit a substantial amount, though she might outlive me…