Selling a Long-Held Home---

You probably remember that Dewey Watson and I have a nice brochure on strategies to save on capital gains taxes as you sell your home (email me for a copy, and see this link for an IRS site on this topic). I was reminded of another strategy when getting together with the local major donor team of my alma mater (at Mt. Holyoke, it really is an alma mater rather than an almo pater).

Alumnae have been donating a portion of the proceeds of the sale of their homes to the College, furthering their charitable goals while reducing capital gains taxes. So if you anticipate $500,000 in capital gains after accounting for your purchase price and transaction costs ("basis"), and after your $500,000 (married) or $250,000 (single) capital gains exclusion, you could donate say 30% of the sale price to a favorite charity and further reduce your capital gains tax bill. Here is an article about donating real estate proceeds from the Boston Globe. As always, you need to consult with your tax advisor on these tax-saving strategies.

Selling a Long-Held Home (with Lots of Capital Gains)

Former school board president, Boy Scout council president, and tax lawyer Dewey Watson and I put together a little brochure on this issue a couple of years ago--if you're lucky enough to have a million dollars or more in appreciation on your long-held home, how might you defer paying the capital gains taxes on the home?

This story, from colleague James Callejas at Fidelity Title's qualified intermediary, IPX, does a really nice job of laying out the tax-saving strategy.

Contact him, me, Dewey, or your tax advisor for more information--