April 15—Tax Day—has come and gone, and we hope you got a refund, or at the very least didn’t wind up owing any additional tax payments for the 2013 tax year!
Seniors can be particularly susceptible to financial predicaments when it comes to owing taxes. Once retired, most seniors are on a fixed income, and having to pay Uncle Sam money they weren’t planning on, come each April, can result in additional financial burdens and accompanying worry. This got Southgate at Shrewsbury thinking. So, we did a little digging and found a great tip on Nolo.com that could help seniors save big!
The website, which provides consumers and small businesses with recommendations on how to address everyday legal and business questions, noted that seniors may be in a position to sell their homes in favor of independent living communities like Southgate at Shrewsbury. When seniors sell their homes, often they will yield big profits as a result of the sale because they likely have built up a substantial amount of equity prior to the sale, it explained.
A situation like this could result in a capital gains tax. But, paying tax on that profit isn’t always the case, Nolo noted. If you live in the home for two out of the five years preceding the sale, the profit, up to $500,000 for married joint filers and up to $250,000 for a single filer isn’t taxable, it explained.
Have you owned and lived in your home for the past couple of years? Are you ready to make a fantastic change by embracing the independent senior living lifestyle that Southgate at Shrewsbury can offer you? If so, now may be the ideal time to make the leap to “downsize.” We say “downsize” because when you move into Southgate at Shrewsbury, all you’re really downsizing on is the grind of daily home maintenance! Living in an independent senior living community gives you the freedom and flexibility to enjoy an amazing variety of dining, entertainment, and living options that enhance, or “upsize” your lifestyle!
Of course, none of the information contained here should be construed as legal or tax advice. We encourage you to reach out to a tax attorney and/or accountant to discuss specific concerns about the taxable nature of any profit made on the sale of your home as you buy into our senior living community. But, with tax time upon us, we thought this was some mighty valuable and timely food for thought!