Skip to content
Andrew Tobias
Andrew Tobias

Money and Other Subjects

  • Home
  • Books
  • Videos
  • Bio
  • Archives
  • Links
  • Me-Mail
Andrew Tobias
Andrew Tobias

Money and Other Subjects

Help! My Home’s Getting Too Valuable!

April 11, 2002February 21, 2017

Chip: ‘With the recent run-up in real estate prices, my Center City Philadelphia townhouse has appreciated significantly since I bought it in 1991. The house is in my name alone. Therefore, I can only exclude $250,000 of capital gains. According to a real estate agent friend of mine, the value of the house is now at that point. It seems like this tax law penalizes people who do not move. I realize that moving has its own costs, not to mention that I would probably buy a bigger house. So, once the tax exceeds the moving costs, should I move just to avoid the future tax? I know – we should all have such issues. I realize that I am fortunate. Although my home is my largest single asset and it has gone up in value, I don’t necessarily think of it as an investment.’

☞ Life is not a business, and one should not live it primarily to avoid paying taxes. I don’t think it’s a mistake to think of your house mainly as a home, not an investment. But financially, leaving aside any other considerations (like a sane, balanced life), it would be wise to move – and to the smallest, cheapest house you can find. Use the profit to buy a rental property or stocks or bonds. The less you spend on your own housing costs, the more you’ll have to invest.

Post navigation

← Pedal, Please
Your Wife, Your Copyright, Your Professional IQ →

Quote of the Day

"Follow a tip from a company's president and you will lose half your money. Get a tip from the chairman and you'll lose all of it."

Bennett Goodspeed (The Tao Jones Averages) quoting a canny Scot.

Subscribe

 Advice

The Only Investment Guide You'll Ever Need

"So full of tips and angles that only a booby or a billionaire could not benefit." -- The New York Times

Help

MYM Emergency?

Too Much Junk?

Tax Questions?

Ask Less

Recent Posts

  • We're Gonna Win. (But Will PRKR?)

    February 18, 2026
  • Must Watch / Must Read

    February 17, 2026
  • Housekeeping . . .

    February 16, 2026
  • Oh, Pam!

    February 15, 2026
  • Maureen Dowd: Doom Scrolling Indeed

    February 14, 2026
  • Courage Is Contagious

    February 13, 2026
  • Ideas For Your Consideration

    February 12, 2026
  • Hey, Yang -- Where's My $1,000?

    February 10, 2026
  • The Epstein Class That's Running Our Country

    February 10, 2026
  • Four Simple Words

    February 9, 2026
Andrew Tobias Books
  • Facebook
  • Twitter
©2026 Andrew Tobias - All Rights Reserved | Website: Whirled Pixels | Author Photo: Tony Adams