Expert: Hans Weber, Licensed Broker Associate - 2/4/2005

Question
My wife and i are looking into moving to Hawaii with my father in law. The house is paid of and is worth about 300 thousand. We are going to transfer the deed to my Wifes name, sell the house here and ship the furniture dog and everything to Honolulu. My Wife is confident she will find a job there and I dont doubt her on that. I have 2 questions on this;
1 How do we have a house there ready to move into when we wont have the money till we sell this house here?
2 How do we avoid Capital gains tax

thank you for you help i an a little nieve on these matters

Answer
Hi,
Thank you for your question.

You need to find a home in Hawaii to rent or buy.
Call Alan Craig toll free at 800 344 MAUI.  He will advise you on the housing market there.

You will then put your current home on the market.  When you get a buyer into contract you will go to Hawaii to find a new home and go into contract to buy it.

The closings will take place first the current home and then you take the proceeds to the closing for the new home in Hawaii.

You should have no capital gains since $300,000 is below the limit and you have lived in the house long enough.

Hope this helps you.

Hans