lazygood4nothinbum
Thinks s/he gets paid by the post
- Joined
- Feb 27, 2006
- Messages
- 3,895
does the alternative minimum tax kick in on capital gains from homesteaded property? i bought this dump for $67.5 some 13 years ago. now a bunch of people seem to think it's worth about $500k. i was planning to hold until i'm 55 (6 more years) and then trade it for a boat to live aboard. i figure i'm looking at cap gains tax on about $150k today and that could increase substantially over the next 6 years. increases slowed from the crazy 30+%'s last year to current 13-17%. over the past 20-30 years this area has averaged about 8-11% increases and was undervalued for many years. currently the area is at complete built-out and redevelopment underway. housing inventory is low & not expected to keep up with population growth. so even with (i think) a conservative 7-8% increases over the next few years i'm looking at selling near $750-800k.
my only other income at that time will be whatever i'm earning off approx. (projected) $1.2-1.6m in investments. (& small pension at age 65).
if amt will apply, what sort of hit might i take? should i consider selling the house before that?
sorry if these are stupid questions. i've been living my entire life on either allowance or salary and trying now to get up to speed on the financial learning curve without wiping out. i seached and read the amt info on this web site and others but still do not understand if that just involves investments or homestead as well.
thank you in advance.
my only other income at that time will be whatever i'm earning off approx. (projected) $1.2-1.6m in investments. (& small pension at age 65).
if amt will apply, what sort of hit might i take? should i consider selling the house before that?
sorry if these are stupid questions. i've been living my entire life on either allowance or salary and trying now to get up to speed on the financial learning curve without wiping out. i seached and read the amt info on this web site and others but still do not understand if that just involves investments or homestead as well.
thank you in advance.