Posted on 04/18/2024 12:31:09 PM PDT by TigerClaws
I wonder how many fall prey to the "Reverse Mortgage" scam?
The way I understand it the price you bought at plus $250k, after that you pay capital gains.
IRS tax code 121
Glad renting worked out for you. Doesn't work for others. My oldest daughter and her husband were renting, paying $2000 a month about 8 years ago. They moved to Iowa and bought a home for $80K, and began fixing it up. When they moved, the former landlord raised the rent to $3000 a month. Daughter and husband own their home with no mortgage at all, big savings. Home now worth about $400K.
When you rent, you don't get any equity when you move out. My youngest daughter was paying $3000 a month rent with her boyfriend, splitting the cost. He left, and it fell on her to pay all the $3000/month rent. We helped her with the downpayment and she bought a home almost two years ago, and the mortgage is a little more than what she was paying in rent. Now that she owns, she gets the benefit of the equity in the home, whereas the old rent payments were like throwing money in the toilet.
The writer seems to think it's "quaint" that grandparents would want to hold on to those "extra" rooms so that their gown children's family can visit and stay over. Or their friends, for that matter.
Sez who?
You can have my McMansion when you pry it from...
“ many of these seniors purchased these homes decades ago and are sitting on millions in equity.”
They’re trying to push us out by raising our assessments, so our property taxes are going through the roof. Our taxes have gone up 30% in the last three years alone. Our modest home in a Virginia suburb now costs us nearly 10 grand a year in property taxes. I’m not sure we can afford to stay here after my wife retires in a couple of years.
When I was 64 and my wife was 59, we bought this place on a 30-year mortgage. It's unlikely that either of us will live until 2049. I don't care if we die before it's paid off. That'll be someone else's problem.
We own a house in NC, free and clear, where my wife’s 84-year-old mother lives. We are always getting solicitations to buy the place, just as you describe. The mailings go in the trash, but I always tell the phone callers that the asking price is $10 million dollars cash, non-negotiable, take it or leave it.
No takers yet, but they keep calling anyway.
Good for them. We all have different circumstances.
I think about the thousands I didn’t spend on interest and invested.
In the last 35 years I’ve gone from paying $800 a month in 3 places to now, after 25 years in one apartment paying $1800.
$500K for married couples. The seller pays long term capital gains. The rate varies on income. The rates are 0, 15 and 20%. I wouldn't think many single people would be eligble for the 0 rate. It is probably a bit easier for married couple to pull it off if they own the house outright or have low mortgage payments..
If you are under the limit of $250K capital gain for singles and $500K for couples, there is no tax. I haven’t seen any home sales tax relief based on one’s age. There are age requirements to tap retirement accounts without a penalty.
And none of them ever mention how the elites own homes much too big for THEM. Lots of room in celebrity homes for all those drug dealer Venezuelans.
it is a shame you dont live in a state like Texas that protects seniors by freezing in their property tax rates
Well, when I took my course in taxation, the state of the law was different. Fortunately, I never became a CPA. I might have been more up to date, but not my idea of a life. Accounting. Bleah.
This is about the fourth article I’ve seen in the past week with the same theme. There was recently one in the WSJ.
So, where are all these “boomers” going to move to after selling their paid-for home? Or, are they just going to be encouraged to apply for MAID* service?
Hubby and I worked hard so that our place would be debt-free when we retired. I want my grandchildren to have a safe-haven for the hard times that are a-coming. Don’t try to tell me I need to give it away so illegal aliens can have a place to live. Deport the illegals here and the housing problem will be solved.
*Medical assistance in dying (MAID) is a process that allows someone who is found eligible to be able to receive assistance from a medical practitioner in ending their life.
Home sales remain at crushed levels as the entire housing market has shrunk by about 20% because homeowners with 3% mortgages are neither buying nor selling, and have vanished as demand, and have vanished in equal number as supply, and due to them, sales are down and supply is down in equal measure, and so churn is down.
Realtors are fretting about the drop in market volume because they make commissions off the churn. And for Realtors, it’s not looking good at all.
I looked up my state's rule for taking the CG exemption for home sales. It is 55.
My course was at Brooklyn College, and dealt only with federal taxation issues, as they existed during the 1990s.
That explains things. The rule you cited expired in 1997 and was replaced with the current rule.
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