![Commercial Real Estate conspiracy. Makes total sense. [640x759 - 428KB]](https://pic8.co/sh/06n9uZ.png){kind=link}
But, now you owe ~$80K in taxes on the $400K 'gain' (inflation) on the first house.
No you don't. Capital gains on a primary residence are exempt from taxation as long as they're used to purchase another primary residence within two years.
However, in high value areas like California you get royally fucked on property taxes. The prices of houses in California is more like you bought a house in 2015 for $600,000 and then decide to sell it for an equivalent house in 2022, but now each house is worth $1.1 million. Your property taxes go from $625 a month to $1,145 a month.
> But, now you owe ~$80K in taxes on the $400K 'gain' (inflation) on the first house.
No you don't. Capital gains on a primary residence are exempt from taxation as long as they're used to purchase another primary residence within two years.
However, in high value areas like California you get royally fucked on property taxes. The prices of houses in California is more like you bought a house in 2015 for $600,000 and then decide to sell it for an equivalent house in 2022, but now each house is worth $1.1 million. Your property taxes go from $625 a month to $1,145 a month.
I stand corrected. TY!
I stand corrected. TY!
(post is archived)