Tax considerations - Posted by randyOH
Posted by randyOH on July 31, 2003 at 16:52:55:
It might make a lot of sense to just sell the house. Your gain would not be taxable. Then you could use your cash to buy a new residence and a rental property. You would then have a stepped-up basis in the rental, which would give you more depreciation and a smaller gain when you sell it.
And I suspect you could find a better rental property than your present residence. For example, you might want to look at duplexes. Or maybe a single family fixer or foreclosure that you could buy below market.
I can’t believe the appreciation you speak of is limited to the neighborhood you are now living in. You might also want to consider that 12% to 15% appreciation is not normal and will not continue indefinitely.