While not rent verses own, would seem that Capital Gain could be an issue for many at a time of lifestyle change.
Isn't the $250/$500K a cumulative lifetime exemption? For instance, I bought my first house around 1971 for @$25,500 but with only a $500 down payment. All subsequent houses (4) prior to The Villages were higher value but were paid for using funds gained from prior sales.
Sold last non-Village home for ~ $650K. Invested ~$350K on the Village house. Just for discussion, if home sold now for $650K, then total gain would be $625 before TV and $300K in The Villages or a total of $925K.
Some improvements made that may have increased value, but nothing significant.
Much of the increase is obviously due to inflation.
Questions.
1/Is the assumption regarding $250/$500K lifetime, correct?
2/ Does the increased value calculation for Capital Gains have an allowance for inflation?
3/Who tracks this maze? Do you need to calculate and report every time you sell? If so, Oops!
4/ Don't we all have to eventually checkout of home ownership? Assisted living, death etc.
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