Ncc1701
Recycles dryer sheets
Hi All,
After I FIRE late next year, I and DW want to spend most of the time in Florida and would like to rent out our primary home in NY.
However we have a large unrealized gain on the primary home and obviously we don't want to lose the $500K (Section 121) capital gain exemption. So Every 2-3 years or so, I would tell the tenants they have to move out and we will then switch our primary home to NY for two years just to "reset the clock" so to speak. After the clock is reset, I would look to rent it out again and then repeat the process two years later.
Is this a sound strategy? Are there risks I'm not thinking about? Anyone else done this? Thanks for any input!
After I FIRE late next year, I and DW want to spend most of the time in Florida and would like to rent out our primary home in NY.
However we have a large unrealized gain on the primary home and obviously we don't want to lose the $500K (Section 121) capital gain exemption. So Every 2-3 years or so, I would tell the tenants they have to move out and we will then switch our primary home to NY for two years just to "reset the clock" so to speak. After the clock is reset, I would look to rent it out again and then repeat the process two years later.
Is this a sound strategy? Are there risks I'm not thinking about? Anyone else done this? Thanks for any input!