Hi,
I've lived in my home for 35 years and it's in Silicon Valley (northern CA). We were only supposed to be in this house for 2 years, but DH decided to quit working after my son was born. He died and I stayed on in this house so that my son would have some stability. Son moved out and I have been living alone. I like living on my own.
The house was built in 1976 and needs so much work. There are cracks in the walls and a long crack in the ceiling. It needs interior and exterior painting, new floors and carpets. I did remodel the kitchen and the master bathroom. I'm overwhelmed trying to hire people to fix up the home and have thought about moving. People buy fixer uppers and so selling the house is not an issue. It's the taxes I would have to pay on it.
Homes in the neighborhood are going for about $700,000 in my neighborhood and people are overbidding. I paid $95,500 for the home in '80. Selling it now would mean I would have to declare at least $400K as capital gains. Of course it depends on how much it sells for, but I would still have to pay a very high capital gains on it.
What would be the best course of action? Rent it out? I want to move but don't want to pay such high taxes.
Thanks in advance,
CABarb
I've lived in my home for 35 years and it's in Silicon Valley (northern CA). We were only supposed to be in this house for 2 years, but DH decided to quit working after my son was born. He died and I stayed on in this house so that my son would have some stability. Son moved out and I have been living alone. I like living on my own.
The house was built in 1976 and needs so much work. There are cracks in the walls and a long crack in the ceiling. It needs interior and exterior painting, new floors and carpets. I did remodel the kitchen and the master bathroom. I'm overwhelmed trying to hire people to fix up the home and have thought about moving. People buy fixer uppers and so selling the house is not an issue. It's the taxes I would have to pay on it.
Homes in the neighborhood are going for about $700,000 in my neighborhood and people are overbidding. I paid $95,500 for the home in '80. Selling it now would mean I would have to declare at least $400K as capital gains. Of course it depends on how much it sells for, but I would still have to pay a very high capital gains on it.
What would be the best course of action? Rent it out? I want to move but don't want to pay such high taxes.
Thanks in advance,
CABarb