If you believe that your retirement “dream house” may be the one you’re living in right now and you have friends and family nearby, why move? Instead, you may prefer to stay in your present home and tap your home equity to pay for a few months of warm-weather living each winter. One way to do that is to enter into a sale-leaseback arrangement. One option is to sell your house to another party, perhaps a grown son or daughter, and rent the house from the new owner. Such a sale will be tax-free in many cases because a married couple owes no tax on up to $500,000 of gain on sale of a principal residence. After a sale-leaseback, the new owners may enjoy the tax benefits of owning investment property while you have extra cash and the opportunity to stay in your home. Be sure that a fair value is paid for the house — this avoids hard feelings within the family as well as problems with the IRS.