Tax Strategies for Seniors: Keep That Appreciated Home and Save

ARTICLE | September 10, 2024

Authored by Vasquez + Company

The surge in residential real estate markets has led many seniors to own highly appreciated homes. This article, "Seniors: You Might Not Want to Sell that Highly Appreciated Home," discusses the potential tax implications of selling such properties and offers strategies for minimizing tax liabilities.

Key Points

• Home Sale Tax Basics: Understand how profits from the sale of a principal residence can exceed federal gain exclusions, potentially resulting in significant capital gains tax.
• Federal Capital Gains Tax Rates: Explore the long-term capital gains tax rates and how they vary based on income brackets.
• Aging in Place as a Strategy: Consider the benefits of holding onto a home until death for tax purposes, including stepped-up basis rules for heirs.
• Vacation Homes: Recognize the lack of gain exclusion for vacation homes and the tax implications of selling them.
• The Impact of Rising Home Values: Learn how the unchanged exclusion amounts since 1997 mean more homeowners may now owe taxes on their home sales than in the past.

For detailed strategies and insights, read the full article here.

Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.