Unless it's a rental property.

No. $500k exemption for primary homes.

I signed the form just last week at closing. The profits are taxable if they exceed $250,000 for single filers or $500,000 for joint/married filers. I'm single.

Key here is profits, not sale price.

Bought a 5000 square foot house on 2 acres in Flower Mound in 1998 for $219K (granted 1400 feet of that was an unconditioned playroom). After about $50K of upgrades over the years we sold it for $550k in 2016. One block from Lake Grapevine. Keep telling my kids to invest in real estate!

I heard of a guy who bought one for 274 and sold it 4 years later for 715

Correct ...I apologize, I assumed married. Actually depends on basis in the property, so if you paid $92k but put $30k into it over the past 30 years your basis would be $122k....nevertheless the point is the same.

Prob worth $750k now!

A) Were you living in this house when you sold it?

B)If the answer is YES......... Did you buy another home?

I put it on the market 3 days after moving to my ranch where I already have a home.

Wow. Just wow.$$$$$$$$$$

Then it was a good investment for you . Most folks selling in this market are taking that money and buying another home to live in and paying the same high price. Good for you.

We sold our house in Tiki Island back in July, full price cash offer, no contingencies. The buyers decided after moving in that it was too small, they relisted it and it sold again 3 weeks later for $25K more than they paid. The market is crazy right now. We are buying a waterfront home in North Carolina on 3 acres for far less than what we sold for. Taxes and insurance are way less even with a state income tax, want to cut expenses before retirement. Our taxes and insurance in Tiki were 20k a year

In boerne that place would bring around $1.3mm

How did you like it out there?

I was looking at that place a while back when I thought we would have to move to Houston.

I could be a real Debbie Downer here and show him what he really spent over those years vs what he made when sold.

Assuming you had a 30 year mortgage paid off in 20, we will say 5% interest just for an average over the 20 years, say $1000 a year for insurance, $100 a month for insurance

$193,000 sales price
-$92,000 owed
-$24,000 insurance
-$75,000 interest
-$48,000 taxes
—————————
Total made = $-46,000

While it did put $193,000 in your pocket, it’s actually cost you around $46,000 to live there.

Congrats!

I’d join in the one uppers but then I’d be a one upper!

But we did alright recently on real estate

The builder on my house built a house for a couple that they moved into Christmas 2019. Got an unsolicited offer, and sold it, 6 months later for a $1.1 million profit. This was Cedar Creek Lake.


I've got a number that if someone drives by our new house and has to have it, we'll move the next week. And we'll be headed east of the Mississippi.

Congrats on the profit but it really isn’t that spectacular. Works out to about 4% per year. S&P 500 over the same time period averaged 7.3% per year. The 92k would be would be close to 300k. Granted you can’t live in the S&P.

I don't have any monetary investments that worked out,

but I have established some personal relationships that are worth more than money to me.

That’s my goal as well, but it will probably be more like 10 yrs for me. Would love to end up on about 40-50 acres with hardwoods and a small lake/big pond to fish and hunt until I can’t anymore.

If you buy in a nice area the value of your home “should” do pretty well. Today I noticed Collin County values are up 7.9% this year. I only see it continuing to skyrocket with all the people trying to move here and the extrely low inventory right now.

You need to talk with an appraiser, hey, wait a minute

Yeah, that was kind of the point of the thread, that I didn't realize that other than being a place to live, it would appreciate in value that much.

Trapper, the place next to me sold to a retired Arlington popo a few months ago, he told me he was outbid 3 times before he threw in hard. Place was basically acreage (15 acres) I could have bought in 09 for 64k, but it sold before I could get back in town. Past several years they built a small store bought "barn" and built a horribly done "house", I think he was in for just under 300k and then spent a chunk totally refurbishing the small house. Mice place now, but the difference in those years is staggering.