[CTgolfer]

We recently purchased a home in TV, with our primary home in CT. We recently put our primary home on the market and will be losing a considerable amount of money. While we will be meeting with our accountant in May, can or should we consider making Florida our primary residence (which we plan to do) and make our CT home our second home? If we can with reasonable disadvantages, can we then claim the loss on our second home... always thinking.

[spk7951]

We moved from CT to TV last year and gave a very brief thought to maintaining a 2nd home in CT or Cape Cod. The cost of the 2nd home along with having money tied up in it had us deciding to spend the money here and get a house a little larger with more upgrades. The overriding issue with making a clean break from CT was the taxes. Our tax burden is now 40% of what it was when we lived in CT. That extra cash can go a long way in retirement.

[villages07]

CT...

You can't claim a loss on sale of your CT home (as far as I know, and I'm not an accountant). Best the Feds let you do is not pay taxes on the gain.

While waiting for your CT home to sell....if you switch to FL residents.... you will be eligible for FL property tax homestead exemption which will lower your property taxes. This might only benefit you if it takes a long time to sell in CT. More importantly, by becoming a FL resident, you will not have any state income taxes that you would normally pay to CT. Again, talk to your accountant...different states have different tax laws on people with multiple homes.

One potential disadvantage.... if you have something akin to a homestead property tax exemption in CT, once you declare FL as primary...you may lose this exemption and now be taxed on the full value of your CT house.

As others have noted, it's very expensive to continue to maintain 2 houses....price CT to sell and be done with it sooner than later. Then, you reap the more intangible benefit of being able to live in TV in a much lower stress, happier environment.

Best advice is to talk to your accountant.

[inda50]

How long did you own you ct home? Also keep in mind the $250,000 deduction per owner you can deduct from Fed. taxes. Does it make any sense to rent the ct home. How comfortable are you in the fl home, is it concieveale you may not want to stay in fl???

Get as much information as you can, and yes make it a business desicion, you will be happier in the long run. hope this helps.