House Plac: From Bag End to Balls Deep

[ChrisoftheNorth]

Not if primary residence for 3 years and not if you make OVER $250k or $500k for married... I dont see anyone of us plebs making $250k from a "flip"

My dad is in this situation... once they decide to sell the house it is a 1.5Million "income"

There should really be an exception for CA. Serious right there.

[dubshow]

Not if primary residence for 3 years and not if you make OVER $250k or $500k for married... I dont see anyone of us plebs making $250k from a "flip"

My dad is in this situation... once they decide to sell the house it is a 1.5Million "income"

well yeah, ouch. #richgettingtaxedmoreandricher

I do have trouble realizing some people pay $1m for a house, frequently in some areas of country. So scales of economy at play, you could easily appreciate $.3M in 2-5 years. Im airboat world, You just dont see houses "double" in value in a 10 year outlook, if median sale price is $180k.

House cap gains aint something we have frequently.

[max225]

My dad is in this situation... once they decide to sell the house it is a 1.5Million "income"

There should really be an exception for CA. Serious right there.

Its basically their retirement ... been living in that spot for a bit over 2 decades. luck, well until the "tax man" hit em.

[dubshow]

My dad is in this situation... once they decide to sell the house it is a 1.5Million "income"

There should really be an exception for CA. Serious right there.

you know that interest paid on that loan was more than my entire house purchase for $220k.

[dubshow]

There should really be an exception for CA. Serious right there.

Its basically their retirement ... been living in that spot for a bit over 2 decades. luck, well until the "tax man" hit em.

anyway to itemize maintenance cost over 20 years to balance out "actual tax due". Im sure there is. This thing happens often with the olds.

edit: dang... nope. We are encouraged to house hop by tax market structure.

https://www.forbes.com/sites/davidmarot ... dc18a74fea

But I know people that do this:

4. 1031 exchange. If you sell rental or investment property, you can avoid capital gains and depreciation recapture taxes by rolling the proceeds of your sale into a similar type of investment within 180 days. This like-kind exchange is called a 1031 exchange after the relevant section of the tax code. Although the rules are so complex that people have jobs that consist of nothing but 1013 exchanges, no one trying to avoid paying this capital gains tax fails. This piece of valueless paperwork does the trick.

edit edit:

found this, which is along what I was thinking. He better have records for everything he did to house over 20 years.

https://www.financialsamurai.com/how-to ... le-profit/

deduct out the "value"

[ChrisoftheNorth]

There should really be an exception for CA. Serious right there.

Its basically their retirement ... been living in that spot for a bit over 2 decades. luck, well until the "tax man" hit em.

Well, I guess a 401k is taxed, so this isn't completely different.

[Johnny_P]

I'll start, currently working on Bag End 2.0. Going to be interesting...

I dont think this member base placs houses as often as cars. Might be slow updates.

This is basically going to be Michele's thread.

[goIftdibrad]

I'll start, currently working on Bag End 2.0. Going to be interesting...

y u hate yourself

[ChrisoftheNorth]

I dont think this member base placs houses as often as cars. Might be slow updates.

This is basically going to be Michele's thread.

If we houses, it'll be the 3rd house the has lived at.

[ChrisoftheNorth]

I'll start, currently working on Bag End 2.0. Going to be interesting...

y u hate yourself

[max225]

Its basically their retirement ... been living in that spot for a bit over 2 decades. luck, well until the "tax man" hit em.

Well, I guess a 401k is taxed, so this isn't completely different.

It is because I think it is taxed as either capital gains or ordinary income either way that'll put them in the tax bracket.

[ChrisoftheNorth]

Well, I guess a 401k is taxed, so this isn't completely different.

It is because I think it is taxed as either capital gains or ordinary income either way that'll put them in the tax bracket.

Not necessarily. Isn't capital gainz considered different from normal income? It's how s avoid high tax brackets. They'll just pay whatever the long term capital gainz rate is, which is better than top tier bracket IIRC.

[max225]

This is basically going to be Michele's thread.

If we houses, it'll be the 3rd house the has lived at.

[ChrisoftheNorth]

If we houses, it'll be the 3rd house the has lived at.

Tell me about it. more houses than my fun car. Insanity.

[max225]

Its basically their retirement ... been living in that spot for a bit over 2 decades. luck, well until the "tax man" hit em.

anyway to itemize maintenance cost over 20 years to balance out "actual tax due". Im sure there is. This thing happens often with the olds.

edit: dang... nope. We are encouraged to house hop by tax market structure.

https://www.forbes.com/sites/davidmarot ... dc18a74fea

But I know people that do this:

4. 1031 exchange. If you sell rental or investment property, you can avoid capital gains and depreciation recapture taxes by rolling the proceeds of your sale into a similar type of investment within 180 days. This like-kind exchange is called a 1031 exchange after the relevant section of the tax code. Although the rules are so complex that people have jobs that consist of nothing but 1013 exchanges, no one trying to avoid paying this capital gains tax fails. This piece of valueless paperwork does the trick.

Yea I have been researching this a bit for them. Comes with a lot of rules... that's for sure.

[ChrisoftheNorth]

At least cars are money pits...houses have proven to be decent "investments" for me.

[max225]

Tell me about it. more houses than my fun car. Insanity.

run the show nothin new bout dis

[dubshow]

anyway to itemize maintenance cost over 20 years to balance out "actual tax due". Im sure there is. This thing happens often with the olds.

edit: dang... nope. We are encouraged to house hop by tax market structure.

https://www.forbes.com/sites/davidmarot ... dc18a74fea

But I know people that do this:

Yea I have been researching this a bit for them. Comes with a lot of rules... that's for sure.

the second link I added in edit is more applicable. He just needs to add up all the shit he has done and be smart about it.

Also, remove all associated cost it took to sell the house.

[max225]

At least cars are money pits...houses have proven to be decent "investments" for me.

For everyone except from 08-now however... if you bought from 05-08 and tried to sell in 09-12 you were in for ass pounding

[ChrisoftheNorth]

Tell me about it. more houses than my fun car. Insanity.

run the show nothin new bout dis

But honestly, I don't mind pinshit projects. I like working with my hands and drastically improving the way things look, especially if it increases value.

I'm over cars for the most part these days.

[goIftdibrad]

I dont think this member base placs houses as often as cars. Might be slow updates.

This is basically going to be Michele's thread.

[goIftdibrad]

For those new to the thread, basically going to try to on a house that requires some expert level pinshitting in a area that we can't otherwise "afford" five streets up from the Bag End 1.0 (BE 1.0). Lower property taxes, better services, nicer houses, all the good stuff.

Have significant "profit" in BE 1.0, but we're not selling unless we can to the new house.

https://www.zillow.com/homedetails/46-C ... 2581_zpid/

List: $425k
Offer: $405k

Considered a "low ball" and the listing agent doesn't like our lender and doesn't want to present the offer to his clients.

thats not hideous

[dubshow]

We could be looking at $100-$150k over what we purchased it at.

We have put $80k into it,

your is so guud.

[ChrisoftheNorth]

At least cars are money pits...houses have proven to be decent "investments" for me.

For everyone except from 08-now however... if you bought from 05-08 and tried to sell in 09-12 you were in for ass pounding

Oh, totally. Not avocating houses as a good investment, just that they've done better for me than cars would have.

There's a good chance this would be our last move for a while. I really think our market has peaked, so I'll only buy something significantly under market value so we don't get screwed. We're in a good position with our current house, and I don't want to lose that.

[dubshow]

Dplac,

you seriously could be looking at taking $20k out in terms of real money. Which is what, a 20% ROI over 3 years? And you'd press the reset button to do it all over again, at a higher loan interest rate?

Is your $80k including the initial down+payments+interest+insurance youve made for 3 years? Or just extra money put into house post sale?