1) You better hope the IRS doesn't find out you rented out rooms in your home and try to claim the exemption. 2) Unless you're married you have a potential 250K exemption and a 65K LT Cap Gain.
Lets not forget that he is in the position to eliminate his mortgage if he downsizes and/or moves to a cheaper area of the country. Living mortgage free for the rest of your life is pretty cool. Living mortgage free in .5M$ home is out of this world. Chick magnet too...
05-12-06 11:31 AM Condo in Tarzana ,CA was appraised for $570K has been on the market from August 2005 listed for 550K sold by the end of January 2006 for $470K. You can see it if you go to zillow.com 5477 Nestle ave, Tarzana CA 91356 unit #17. You can see that it is appraised at $570k and sold for $470K
How much did you buy it for, how long did you live there, and what was the balance of your mortgage at the time of the sale?
There's absolutely no question that in hindsight, home ownership has been a fantastic investment over the last 5 years throughout California. In perfect hindsight, only an idiot would have rented in 2000 or 2002. However, it is precisely the fact that home owners have done so well in the past that makes renting a much better use of money today. Martin
Zillow has the price the home sold for ? The price they show as mkt value is the tax assessment. Depending on how long ago the town was reassessed the tax assessment may or may not be the same as mkt value.
what if you incorporate your self and take a 25% home office deduction ? probably should work that into your model. I rent a 2 acre home on the the Gold coast of Long Island for about the same as a nice 1 BR in NYC.
You use the term "appraisal" but I think you mean "assessed value". They really are quite different. An appraisal in an unbiased opinion of market value by a licensed/certified appraiser. An assessed value is a value according to a uniform schedule for tax rolls in "ad valorem" taxation. Appraisals are NOT public information, in fact an appraiser could lose his/her license for disclosing without permission of the client. Assessed values tend to lag the market, so it's not unusual to see assessed values below market value in a rising market and above market value in a declining market. In fact, it's rare that they match at any given time.