I
would like to inform you about one of the most exciting changes
that occurred a few years ago in the IRS capital gains laws.
I'm constantly surprised to find out that a large majority
of homeowners I meet are unaware that they are able to sell
their houses TAX-FREE!
Here's how it works in the most simplest of terms:
Old law: You sell your primary residence (not rental property)
for $250,000. You would have to purchase a replacement house
within 24 months for equal or greater value ($250,000+) in
order to defer paying any capital gains taxes. If you failed
to purchase a house you would likely have been stuck with
a significant income tax bill.
New law: You sell your primary residence (not rental property)
for $250,000. Period! You do NOT have to purchase another
house. You do NOT have a time frame to worry about. If you
file federal tax returns jointly you are exempt up to $250,000.
The requirement you must meet is this: You must have owned
and used the house as your primary residence for any 2 of
the prior 5 years.
There is no more"once in a lifetime" 55
years old age limit option. You can shelter the profits
from your
house like this as often as every 2 years.
This is a significant advantage for homeowners that puts
more or all of their equity in their pocket when they sell.
It has the biggest effect on those who have seen huge increases
in the price of their properties.
Advantages to you:
1. Keep more or all of your profit when you sell.
2. Gives you more $ for the down payment on your next purchase.
3. More $ to pay off bills, fund vacations or educations,
purchase a car, boat, etc.
4. No time frame to worry about purchasing another house.
5. Sell your rental house now tax-free if it was your primary
residence any 2 of the past 5 years.
Contact us if you'd like a handy brochure that explains
more of the real estate related tax law changes that took
effect with the Tax Relief Act of 1997.
Rusty Simmons
Vacaville, California
http://www.simmonsrealty.net
e-mail: simmons@castles.com
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