Thinking of Downsizing? Think About Taxes Before You Act!
If you are a homeowner, it is likely that at some point you will think of downsizing. This may occur when the kids are grown or when you no longer need to live in a large home with a backyard.
However, before you act make sure you consult with your tax advisor and an attorney to discuss the tax ramifications.
In the bay area, downsizing usually means that you will incur capital taxes for any profits you earn in selling your primary home to purchase your new smaller home. In addition, you may also be on the hook for higher monthly property taxes once you purchase your new smaller home that is assessed at a higher rate than your original home. Under these circumstances, it is important that you consult experts before you act.
Here at Chauvel and Glatt, we assist families to downsize without paying large sums of money in taxes. To find out how our estate attorney can assist you, contact us today.
This material in this article, provided by Chauvel & Glatt, is designed to provide informative and current information as of the date of the post. It should not be considered, nor is it intended to constitute, legal advice or promise similar outcomes. For information on your particular circumstances, please contact Chauvel & Glatt at 650-573-9500. (Photo credit: 123rf.com)