Flipping Out: What You Need to Know About Tax and Real Estate

My parents have lived in the same house in eastern North Carolina for 45 years. That’s rather remarkable considering that most Americans don’t stay put: we move, on average, nearly 12 times in our lifetimes.

Moving house is especially appealing right now. Record-low mortgage rates combined with a limited number of houses for sale have created a seller’s market: prices are soaring, and homes are selling almost as quickly as they can be listed. A local real estate agent told me that buyers are going to extremes to acquire properties, including all-cash payments with limited or no contingencies.

Selling ...