My real estate agent says they might eliminate this exemption if democrats take the white house. I am wondering what to do, I’m retired, disabled, ‘cash poor’ but own my home (no mortgage). The home is worth about $300,000, and costs me money in property taxes and maintenance. I could sell it and take that capital gains exemption while it’s still the law, but would then have to rent an apartment. Also, the $250,000 gain is not taxed, but if you keep the money on hand in CD’s or whatever, then the income on it IS taxed.
You have a clever plan where you keep reinvesting in houses, but my health and limited resources won’t allow me to do that. I’m afraid of missing out on an opportunity by not selling now, as there are so many dire predictions about the economy.
Do you think this capital gains exemption is safe for a while, or in danger as the govt desperately tries to raise more taxes? Any ideas or advice for me? Thanks!
Rent a portion of the house either as a small apartment or as roomates depending on what zoning permits.