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

"We've forgotten all the sacrifices that the people who've gone before us made to give us this wonderful life that we have. We accept it; we take it for granted; we think it's our birthright. The facts are, it's precious, it's fragile -- it can disappear."

Ross Perot, 1988

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

  • Stuffing The Goose

    June 30, 2025
  • Yes! (Plus A Bonus)

    June 29, 2025
  • How Does THAT Make You Feel . . .

    June 27, 2025
  • Randi, David, Ken, and HYMC

    June 26, 2025
  • Six Links For Your Consideration

    June 25, 2025
  • Weekend Reading

    June 20, 2025
  • Oh, My

    June 18, 2025
  • 3 Quick Clips

    June 17, 2025
  • A Quick Poem

    June 15, 2025
  • Must Read

    June 14, 2025
Andrew Tobias Books
  • Facebook
  • Twitter
©2025 Andrew Tobias - All Rights Reserved | Website: Whirled Pixels | Author Photo: Tony Adams