If you’re thinking of selling your home, but the market is slowing, another option to pursue is renting it out until the market picks back up again. But how do you decide which is the right option for you? Today I’ll share five things to think about when deciding which route to take. For one, will there be any tax ramifications? If the home you own is your primary residence, tax law says that if you’ve owned it for two of the past five years, you can enjoy a capital gains tax exemption at the time of sale. For federal tax, that’s about $250,000 for one person, and about twice that for a couple. If you decide to rent your home out for a couple years, you may miss your opportunity to enjoy that tax benefit. To see the other points to consider, watch my latest video.
Learn more: https://www.sophierealestate.com/blog/5-considerations-if-youre-debating-selling-vs-renting-your-home/
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Sophie Shen Real Estate Team
1525 McCarthy Blvd #1000 Milpitas, CA 95035