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A comment on How Zillow's homebuying scheme lost $881M. Parent comment

Re:How Zillow's homebuying scheme lost $881M by jjav on Friday March 18, 2022 @05:02PM (#30727478)
> This is so alien to me. Why don’t you sell the place?

Selling might trigger a very large tax liability, depending on original cost vs. current price. When that is the case, it's better to keep it in case you might want to return to the area in the future.

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Re:How Zillow's homebuying scheme lost $881M by HWR_14 on Sunday March 20, 2022 @04:04AM (#30740979)
The first $500k of appreciation is tax free. The rest is long term capital gains. If you want to minimize taxes, you should sell your house every time it appreciates in value by 500k and buy a new one. As long as you don't do so more than once every 2 or 3 years, which is how long it takes to reset the tax free increase.
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