Early Retirement Extreme Forums

Hi

So I have been very lucky that my home jumped in value & I've decided to cash in and sell. I'll be making about $600k gain and I'm wondering if others here who may have enjoyed the same in this market and found ways to minimize the CGT.

So far I have: -

Make maximum payment to IRA (I'm Self Employed)
Make maximum payment to Kids 529 College accounts

I know I can claim the first $250k as a single homeowner and reduce it by any capital expenses. But I wondered if the smart people on here have some other strategies.

By the way I'm a low income earner, so if I could roll some gain to next year somehow that would help.

Thanks in advance.

Hold on to the house, rent it out (thus converting it into an investment property) and do a 1031 exchange? I think you can sell the place and buy a less expansive place, pay tax only on the difference, and perform this transaction in multiple years to smooth out the tax bite in any one year.

Get married? Then you’ll have a $500K exemption.

Oh I already sold the house.

Getting divorced after getting Married to obtain the $500k exemption would cost me more! lol

The time to minimize taxes is before the taxable event occurs

Check the cost basis of the house: i.e. any home improvements with records?
https://www.irs.gov/faqs/capital-gains- ... home-etc-3

offset capital gains - i.e. investment loss.
https://www.irs.gov/taxtopics/tc409