Huge capital gains taxes when downsizing from inherited house
That's pretty much it. I know it's unavoidable, but dang!
I thought I'd stay here forever, but the area around my neighborhood has gone downhill while remaining a HCOL area. I'd like to move to a nicer 55+ neighborhood in the same city and downsize to a 2 bed 2 bath 1 story condo.
I inherited my house from my Dad in 1992 and have lived in it ever since. Awaiting a historical appraisal for the value at that time, which I'm guessing was maybe $120,000 to $130,000 at the most, and possibly even less.
Current value is at least $700,000, so even with the $250,000 deduction for single filers it will be a huge tax hit. I remodeled the kitchen and baths quite a few years ago and now those updates are old.
I'm also not sure if or how much to invest prior to selling. I had a new roof put on a few years ago. It needs windows, probably a re-stucco, floors. Kitchen and baths could use upgrading again.
Just curious if anyone else had a similar situation and your thoughts.