Did you sell primary home after purchasing new one?
Jan 25
22 Comments
Home owners who recently bought 2nd home in Bay Area, did you sell the previous home?
If no, why not taking advantage of no tax on $500k profit rule?
Please mention the reason in comments.
Edit: those who have answered “no”, how is renting working considering rent to property value gap is huge? (Even if you are cash flow is positive since you bought long time ago)
#housing #mortgage #sanfrancisco
comments
If prices have appreciated for the old house, they would have spent a bomb on new one anyway
I was thinking that it's not even an option to hold on to both
I now have twice as much house with money for my investments
Since I am over 55, I used Prop 19 to get my new home property tax cut in half, by setting it to the 2004 baseline of my old home.. home run!
If your salary is 500k which many are reporting nowadays... And if you have gained 1M in home equity, you will start falling in 40% tax bracket.
With ever increasing salaries, most FAANG engineers might find themselves in that tax bracket in near future.
Equation is, either don't sell the property ever or sell it now.