Quote:
Originally Posted by spazzyfry123
Change your primary residence to the second home for a couple years. As long as it was your primary residence two of the last five years (as of sale date), no capital gains taxes!  |
Quote:
Originally Posted by dreamingat30fps
Sorry I didn't read the whole thread in detail.
You could theoretically live in the vacation home for 2 years then sell it and move back to your primary home. Who knows what's going to happen in 2 years though.
EDIT: I see spazzyfry123 already said this above... I read it this time... just read AFTER commenting.  |
I've sort of looked into doing exactly what you two suggested. My initial look is it's just too much of a hassle to transfer everything over to the state where my second home is located. Off the top, I've got a few vehicles which would have to be inspected and registered at the new state along with any taxes and changes in insurance. I have to change my driver's license. All my mail would have to go there with various businesses and things to have the proper paper trail. This might also impact the rules of the mortgage that's on my primary home if I were to follow the letter of the mortgage contract. And the list goes on and on.
It's just easier at the moment to hold on to that property as I do use it pretty frequently. And the longer I wait the more appreciation I'll expect on it as there are no less than 7 major housing developments going on with many units already sold. The development my second home is in is in the final stages of wrapping up. All the units as far as I can tell in the final section have been sold. Housing in this area which happens to be near the coast (ie beach) is appreciating due to many moving into the area. It's similar to the Florida effect as many are leaving higher cost of living areas to move into this area and are able to work remotely. I see it with the huge increase in traffic both in season and out of season.