A major decision when moving to the seminary will be to buy or rent. In the past, homeowners were concerned about paying taxes on the profit. But in May of 1997, President Clinton signed a tax law letting a single homeowner profit up to $250,000 and a couple clear up to $500,000 on the sale of a home and not have to pay any taxes. The only catch is that you must have lived in the home for two years, or two of the last five years, and you can only do it once every two years.

This is a radical departure from the old law, which required anyone who sold a home to buy another home that cost at least as much as the old one or pay tax on profit from the sale. Now, one can purchase a home in Fort Wayne (2nd in USA for affordable housing) for less than the one previously owned and not take a hit on taxes, or wait (the old law) until age 55 for the once-in-a lifetime $125,000 exclusion. Also, during the vicarage year, a returning seminary student could live in it and pay the mortgage payments.

On the other hand, some seminary students choose to go the rental route, not worry about updates, down payment or taxes. Just weigh all options: borrowing the money, taxes, etc., to be a homeowner, or rent which means the money is gone but easy to exit when leaving. Both avenues work well in Fort Wayne. I have pictures and stats on hand for sale and rental homes!

From Volume 2, Issue 5, September/October 1998