Im 24, my home is in Tampa, and i have alittle over 100k equity in 3 years. But i have to relocate. Should i sell and reinvest...possible earning 15-20% on that? Or not sell and rent out my home...leaving to 100k tied up. But wont i have to pay capital gains later. Or should i be safe and use the 100k as a down payment for my new home?
2007-05-19 09:28:28 · 3 answers · asked by Ryan G 2 in Business & Finance ➔ Investing
I'm guessing that you did not pay over 100k on principle owed on the house in only three years, nor anywhere close to that.
Which means that you think you have a profit.
sell and grab the cash. your profit is not taxable if you've actually lived there for two years and haven't claimed a similar exclusion on your taxes in either of this or the tax year preceeding the sale.
besides ... atm you likely do not know how much housing in your new city will cost. My personal bet is that it won't be cheap.
enjoy.
2007-05-19 09:41:09 · answer #1 · answered by Spock (rhp) 7 · 0⤊ 0⤋
You can only rent it out for 2 years maximum and still keep the profit tax free. If the real estate market has not dropped to low in Tampa then sell now. If the market is bad, try renting for a while until things improve.
2007-05-19 17:15:56 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I suggest you to sell.
Florida is going to disappear in just a few years.
I suggest you to buy "An inconvenient truth" and then give it away to somebody else living in Florida.
2007-05-19 17:28:51 · answer #3 · answered by Anonymous · 0⤊ 2⤋