Princeton Town Topics – Let’s Talk Real Estate – August 29, 2007
CALLING ALL EMPTY NESTERS!
Your children have left the nest, and your four-bedroom home seems really large. Maintenance of the house and yard requires more time and energy than you are willing to continue at this point in your life. Could it be time for a change?
If you are considering scaling down, many options are available to you. You may be able to find a beautiful townhouse community where the association takes care of the grounds and exterior maintenance. Many condominium developments provide services that you now have time to enjoy–pools and spas, tennis courts, gyms and other amenities.
By selling your principal residence as married homeowners filing jointly, you can enjoy up to $500,000 in home sale gains tax-free, provided you have occupied the property as your principal residence during two of the prior five years. Taxpayers who file singly may exclude $250,000 in tax-free profits. Home-sellers are eligible for the exclusions for gains made on sales once every two years. Talk to your accountant and then to your Realtor!
