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Discovering the nest egg is shrinking, some intrepid retirees have concluded the best path is bail from the nest.
Even if home prices aren’t encouraging, many Long Islanders are finding the time is right to trade the big house with its maintenance, high tax and utility bills for a more manageable, affordable home that fits their lifestyle – on or off Long Island.
Median home sale prices dropped from $490,000 in Nassau County in July 2006 to $423,000 in July 2011, and from $410,000 to $321,000 in Suffolk County over that span, it’s not a bad time for retirees or those approaching retirement to sell.
“Capital gains taxes are at historic lows,” said Harvey Susnick, a partner in the Jericho office of the accounting firm Berdon. Currently, there’s a $500,000 exclusion for a married couple and a $250,000 exclusion for individuals, and after the exclusion, the federal capital gains tax is just 15 percent.
The high exclusion and low taxes are particularly important for homeowners who have had their home for decades. “There are people who bought their house 30 years ago for $70,000 and now it’s worth $800,000,” Susnick said.
For capital gains tax purposes, homeowners can deduct what they paid for capital improvements. “If you have been in a house for 30 years, chances are you have made improvements like finishing the basement, redoing the kitchen or adding rooms,” said Susnick, who noted the real estate commission from the sale is deducted from the capital gain, as well.
We have so many beautiful 55+ Communities all across Long Island. New Construction In St. James starting at $299,000 with very low maintenance fees and taxes. The Greens In Melville Offers A Luxury Lifestyle With Low Taxes on the Nassau/Suffolk border. The amount of money you will be saving by moving into one of the communities will make up for the decline in the market. We have watched taxes increase while property values decrease over the past few years. Now is the time to make the decision!
Contact Melanie Mazzeo & Gary Baumann Of Prudential Douglas Elliman For Additional Information Or A Tour Of One Of Our 55+ Communities. 631-858-2439
Gary Baumman & Melanie Mazzeo Are Senior Specialists, SRES