Look at Our Featured Homes
Find Bradenton Homes for Sale
Bradenton Buyer Guide
Bradenton Seller Guide
Real Estate Investing Tips
Bradenton Real Estate News
Meet the Team and learn about our Highest Rated Service
Information about the Bradenton Area
Bradenton Real Estate Home
Contact us


Name:
E-Mail:

Phone:

Comments and Questions:

  Capital Gains Tax - Back
Capital Gains

Tax Changes and Effects
The new capital gains law allows homeowners to avoid paying taxes on the first $500,000 of profit if they are married or on the first $250,000 if they are single. You must have lived in the home as your primary residence for two of the last five years. You are allowed to use the provision as often as you like, as long as it fits in that two year period. Any gains above the limit will be taxed at the new 20% capital gains rate - down from the current 28 %.

The old law provided a $125,000 ""one time"" tax free exclusion on profits for home sellers 55 or older. This no longer is used, but those who have used it will be allowed to use the new provisions without penalty. Under the old law you could roll over gains if you bought a more expensive house. If you sold a more expensive one and purchased a less expensive one you were liable for gains tax. Under the new law this provision is no longer in effect.

Time Frames
If you bought and sold a home within 1 year, any capital gains would be taxed as regular income. If bought and sold between 1 and 2 years, gains would be taxed at the long term capital gains rate. Filing an extension may be a consideration, talk with a CPA for advice. Needing to sell and move for specific reasons may have cause for exclusion of gains tax prior to two year ownership.

Save Receipts
Always save receipts for home improvements in a ""house file"". If you don't qualify for the 2 year ownership rule, the cost of improvements can be used to offset capital gains tax you may have after the sale of your property.

People Benefited Now
- Wanting to downsize, children have all moved out.
- Retirement and move out of the area to less expensive area.
- Job relocation from area with high property values to lower values.

People with rental property could sell their current home, move into their rental for two years and sell it under the $500,000/$250,000 provision with the same benefits.

Need Answers
If you are not sure what tax consequence you face when selling real estate, consult with a CPA or tax attorney and not a real estate agent.

Click Here to Return to Article Index.
Home View Homes Search Homes Buy A Home Sell A Home
For Millionaires Newsletter About Us Contact Us Area Info

Privacy Policy:
All information you share with us is kept strictly confidential and is never shared with anyone else. This includes your contact information including name, address, phone, and email address. We will only contact you regarding information you have requested from us. You may ask to have your contact information deleted at any time by using the "contact us" button on our website. Thank you.

Copyright © 2002-2016 Avery Realty Team

 

 

 

 

Avery Realty Team provides the highest rated full service in real estate services for Florida, Bradenton, Bradenton Florida, Bradenton Florida Real Estate, Bradenton FL real estate, Bradenton Real Estate, Bradenton Beach, Bradenton real estate for sale, Realtor Bradenton, Bradenton Realtor, Sarasota, Sarasota Florida, Sarasota Real Estate, Sarasota Florida Real Estate, Sarasota FL real estate, Sarasota, Lakewood Ranch, Palmetto, Palmetto Florida, Ellenton, Ellenton Florida, Manatee County, Manatee County Florida, Manatee County Florida real estate, Sarasota County, Sarasota County Florida, Sarasota County Florida real estate, real estate investing, MLS Bradenton Florida, Bradenton Homes, Sarasota Homes, Sarasota Properties, Sarasota Realtor, Sarasota MLS, MLS Sarasota, Sarasota Realtor, Lakewood Ranch Country Club, The Concession, real estate investing, real estate investment, real estate investing in Bradenton Florida, real estate investing in Sarasota Florida, new homes in Bradenton Florida, new homes in Sarasota, Florida.