Greetings,

If they are going to turn right around and sell the new home this strategy
might avoid paying some capital gains tax (since they will have lived in the
home two out of the last five years).

Hope this helps,
William

"Greg" wrote in message
...
The guy 3 houses up from me moved a 780 sq/ft house 15 feet back and then
built
a 2000+ foot house over top of it. I asked him several times why this
wasn't a
teardown and never did get an answer that made any sense.
I suppose there may be some subtle permit or tax excuse but I don't have a
clue
what it might be. There is no historical link and his taxes will be based
on
what he ends up with, at market value. Since the lot was already
developed,
permits are not an issue.
The only thing he said that might make a bit of sense was he could live
there.
I think you could rent for the cost of moving the house and the added
costs of
building around the existing structure.
They have the new shell dried in and they are tearing out the old house,
hauling it out in wheelbarrows I suppose.
My wife is a builder and she just shakes her head when she drives by.