Real Estate -Capital Gains/Estate Taxes


M

MC

Newsgroups: misc.taxes.moderated

Correct me if I am wrong, but there seems to be a big disparity
depending on the following scenarios (over many years):

1) Buy a house, gains $250K, sell house, buy another, gains $250K,
sell house. You never pay cap gains due to 250K exemption.
2) Buy a house, goes up $500K. You die. No capital gain or estate
taxes (assume total estate less than exemption).
3) Buy a house, goes up $500K. You sell 1 month before you die.
You owe capital gain on 250K gain.

Obviously, you want to avoid #3. So, either sell your home every
time the gain gets to be $250K or plan on dying there.
 
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