Reply to WWYD: keep DC rowhouse in Shaw as investment?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Surprised no one's mentioned tax issues. Up to $500,000 in profit from home sales is tax exempt for owner occupied homes sold by a couple - that is, if you've lived in it for at least 2 of 5 years before you sell:

https://www.nolo.com/legal-encyclopedia/the-250000500000-home-sale-tax-exclusion.html

So if you sell now, you wouldn't pay tax on any of the profit. But if you rent it out for more than 3 years, that benefit would disappear.

If you're at all on the fence, that should push you to sell.[/quote]

Making financial decisions simply to save on taxes is idiotic.[/quote]

Well it can be a savings of 5-6 figures so it’s idjotic to NOT take this into account.

If OP rents her house out for four years and then sells she may have capital gains of 60k.  This could erase ALL of the profit she just made renting!  In fact it may mean she LOST money renting!

[/quote]
Yeah - if you think you're going to sell it any time in the next decade or so - you should just sell now and take the tax benefit. Otherwise you'll really have to stick it out for a long time to make up for that "free" profit.[/quote]

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