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deanpowellhomes

Deciphering Capital Gains With Real Estate



Many homeowners that I work with are taking advantage of the amazing capital gains rules when selling their primary home or investment property. Most commonly they are looking to move or downsize and the large capital gains exemption they can take from the sale helps tremendously with the transition. For primary residences the capital gains exemption is $500,000 for a married couple and $250,000 for a single owner. Because many of my clients have live in their homes during the time Bay Area real estate has appreciated considerably, they have a lot of equity to take advantage of. Proposition 19 for owners over 55 years old also allows for moving the original property tax basis to the next home anywhere in California. This sets up a perfect formula for retirement downsizing and relocation.

 

Investment property owners can also take advantage of a 1031 exchange where they can sell their appreciated property and roll the proceeds into another investment property without paying capital gains taxes. This most frequently happens with my clients that want a more profitable real estate investment or want an option that requires attention than when they had to be the landlord. This is a really rewarding part of my business because I can help so many families with estate planning and retirement by making sound decisions with their investment properties.

 

There are lot of other unique scenarios like vacation homes, secondary homes and other situations that have special requirements. If you are thinking of selling a home and want guidance on how to navigate your options make sure to get in touch with me for a free consultation.


Dean Powell

Keller Williams Realty Danville

CA DRE # 02108792

925-765-8584

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