Maximizing capital gains tax exclusion on sale of my house
I am considering selling my house and downsizing to a rental or perhaps buying something else. My house was purchased in 1992, and has appreciated a great deal. I met with a CPA and I may owe upwards of $200k in taxes when I sell. I'm single and bought out my ex's equity 5 years ago. I was hoping that the fair market value that we agreed on in our mediation would be my basis, but alas, I was mistaken. As a single person, I can exclude $250k from the proceeds from tax. My CPA estimated a taxable gain of $683k. I can't be the only person in the Bay Area to face this. I read on a blog a potential tactic of making my adult son a part owner in order to exclude another $250k. I need this money for my retirement. I'd love to hear from anyone else who's gone through something like this. If you used a tax attorney or a real estate attorney to advise you, I'd love a referral!