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๐Ÿก Housing Market 2023: What Happens if You Sell Your Home When Youโ€™re on Social Security?

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Anonymous
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๐Ÿก Housing Market 2023: What Happens if You Sell Your Home When Youโ€™re on Social Security?

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Honored Social Butterfly


@Anonymous wrote:

Never thought of this as I have never owned housing.

 

In my opinion, I think after a certain age we should get some grace.

 

Yikes, so many folks losing their loved ones as we age = having to downsize....๐Ÿ˜ช

 

Nicole โ˜น๏ธ


Selling ones primary residence does not affect oneโ€™s SS benefit at all.  But one or the couple may have to pay some additional taxes depending on the selling price of the home and their basis in it.  Homeowners do get to defray a certain amount (once in a lifetime) on the home being sold if they have lived there 3 out of the preceding 5 years - primary residence.  

$ 500,000 for a couple; $ 250,000 for a single individual on the profit (that;s less the basis) Age does not play into it - although many people do wait to take this one time exclusion later in life.  But with the price of homes now a days - many people may go way over this amount and owe capital gains as well as Obamacare excess tax.

 

The proceeds may also create additional taxes on earnings where these proceeds are invested.  Also higher Medicare Part B and D premiums (IRMMA).  

 

So no, there is no grace based on age - why should there be since homeowners did get tax breaks when they were buying the home. (Interest deduction).

It's Always Something . . . . Roseanna Roseannadanna

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Conversationalist

Not in California, here's the rules' if married you get a $500,000 allowence against gains. Don't take tax advise from a community board, ask your account or at least ask Google specific to your state.

 

How do I avoid capital gains tax on primary residence in California?
 
 
You do not have to report the sale of your home if all of the following apply:
  1. Your gain from the sale was less than $250,000.
  2. You have not used the exclusion in the last 2 years.
  3. You owned and occupied the home for at least 2 years.
Karyn

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Anonymous
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Honored Social Butterfly


@Anonymous wrote:

Never thought of this as I have never owned housing.

 

In my opinion, I think after a certain age we should get some grace.

 

Yikes, so many folks losing their loved ones as we age = having to downsize....๐Ÿ˜ช

 

Nicole โ˜น๏ธ


Selling ones primary residence does not affect oneโ€™s SS benefit at all.  But one or the couple may have to pay some additional taxes depending on the selling price of the home and their basis in it.  Homeowners do get to defray a certain amount (once in a lifetime) on the home being sold if they have lived there 3 out of the preceding 5 years - primary residence.  

$ 500,000 for a couple; $ 250,000 for a single individual on the profit (that;s less the basis) Age does not play into it - although many people do wait to take this one time exclusion later in life.  But with the price of homes now a days - many people may go way over this amount and owe capital gains as well as Obamacare excess tax.

 

The proceeds may also create additional taxes on earnings where these proceeds are invested.  Also higher Medicare Part B and D premiums (IRMMA).  

 

So no, there is no grace based on age - why should there be since homeowners did get tax breaks when they were buying the home. (Interest deduction).

It's Always Something . . . . Roseanna Roseannadanna
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Anonymous
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Honored Social Butterfly

@Anonymous 

What I wrote was NOT an opinion - it is how it works - it is all part of that Retirement Planning discussion in another thread.

 

 

It's Always Something . . . . Roseanna Roseannadanna
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Conversationalist

Not in California, here's the rules' if married you get a $500,000 allowence against gains. Don't take tax advise from a community board, ask your account or at least ask Google specific to your state.

 

How do I avoid capital gains tax on primary residence in California?
 
 
You do not have to report the sale of your home if all of the following apply:
  1. Your gain from the sale was less than $250,000.
  2. You have not used the exclusion in the last 2 years.
  3. You owned and occupied the home for at least 2 years.
Karyn
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Anonymous
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WE "appreciate" you stopping by Karyn @Karyn8  !!!! โ€Œ๐Ÿ’ƒโ€Œ๐Ÿฅณ, Nicole ๐Ÿ™ƒ

 


โ–ถ๏ธ@Karyn8 wrote:

Not in California, here's the rules' if married you get a $500,000 allowence against gains. Don't take tax advise from a community board, ask your account or at least ask Google specific to your state.

 

How do I avoid capital gains tax on primary residence in California?
 
 
You do not have to report the sale of your home if all of the following apply:
  1. Your gain from the sale was less than $250,000.
  2. You have not used the exclusion in the last 2 years.
  3. You owned and occupied the home for at least 2 years.โ—€๏ธ

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