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Sell Before 500K?? (Capital Gains)

Hey all, we currently live in a home I purchased in 2010 for 240K and are now saving for our forever home. The idea was always to rent this house out and save for a sizable down on the next house. Although, now I worry, it’s in our best interest to sell before the 500K profit capital gains can be triggered.

Things of note, we spent about 245k in remodeling the home, located in CA, to move back into it during the pandemic as it was a rental for a few years. The tenant wrecked the house so a majority portion of that was to make the house livable again. Are remodel costs factored jnto the "profit " margin of the trigger?

Zillow / Redfin is estimating the houses value between 650-720k but it’s not counting some of the upgrades we have made on the house. i would estimate were near the 710 side of things.If we start renting it agin , we may lose the opportunity to sell it before it hits 740k , where the delta would hit 500.

For those of you with rental properties, do you factor in the capital gains trigger?

Seems like there’s an inflection point where you sell right before it would trigger, or decide you keep it and rent it out for a long time after to make up that difference.

Thanks !

submitted by /u/NBEdgar
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/1aw6rr6/sell_before_500k_capital_gains/
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