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Subject:  Re: Take out equity before renting property? Date:  3/9/2006  2:24 PM
Author:  Foolferlove Number:  7726 of 14302

Most folks, when they move out of their house, need to move into another one, and have to sell their old house to be able to make the down payment on the new house.

This also lets them take advantage of the capital gains tax exclusion for the primary residence.

We are likely to be renting our next place, as we are moving to either San Fransisco or Boston! Not sure I want to buy quite yet in those markets, especially since we are likely to stay less than 5 years.

As for capital gains, I thought that capital gains were exempted up to $250,000 for primary residences regardless of whether you buy a new house. On a $90,000 home, my gains are likely to come out to less that $250,000. :)

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