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November 19, 2012


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Financial Samurai

Some excellent points you make Syd. Making investment decisions predominantly for marginal tax reasons is probably not the best bet.

Your real estate story is interesting, b/c I've been thinking of selling my house in a couple years (bought a while ago), simplifying, and moving into one of my rentals for two years, and then selling for the tax free gains vs. just selling my rental as soon as my tenant leaves next year.

Long term cap gains is 15%. If say the profit is $300,000.... $45,000 is a lot of money to pay and I think the housing market is getting better, not worse. Hence, staying for 2 more years could be good, but who knows!


Retired Syd

Sam: I have to think that strategy is a better idea now than it was in 2008 right before the real estate bubble popped. But you're right there's always a risk of the unexpected! One risk is the real estate market but the other risk is a change in the tax rules regarding tax-free home sales.

My Life

Ha! I'm with 'Scared'. But what took you so long to figure this out? I saw the writing on the wall back in 2001 and dropped out then and there.

Not scared any more.

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