Combining Two Households
(Without coming between love & romance!)
How many of us have been in the scenario of trying to combine 2 separate households when getting married? Do you sell one of the homes & both live in the one left? Do you sell both & buy a new home together? Or 3rd alternative, rent one out & live in the other? Some practical, albeit not very romantic, factors you need to give consideration to are:
- The strength of the market where each of the properties are located
- The desirability of the individual neighborhoods and the likelihood for one to appreciate more & more quickly than the other
- Your financial situation as a couple, i.e., be fully cognizant of your other half’s financial strength or weakness
Remember, that if you sell a home as a single person, you can claim up to $250K in profit, tax-free, if you lived in it at least 2 years. The deduction is $500K for married couples, but only if you lived together for 2 years in the home. A consult with your tax professional would definitely be in order! |
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