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Tax Considerations >Tax Rewards for Homeowners
The Federal Tax Code has significantly improved the American taxpayer's ability to profit by selling a principal residence. Prior to 1997, homeowners could take advantage of a tax benefit termed the "rollover", which granted exemption from capital gains taxes on the net profit from the sale of a home. Homeowners who used profits to purchase a bigger and better home did not have to pay tax. And homeowners over the age of 55 were given a once-in-a-lifetime exclusion from taxes on profits of up to $125,000 on the sale of their principal residence.
Compare those tax breaks with our current, streamlined and potentially more profitable arrangement that replaced both the rollover and the one-time exemption. If you are a married home-seller filing jointly, you may enjoy up to $500,000 in tax-free home sale profits, provided you have occupied the property as your principal residence during two of the last five years. Taxpayers who file singly get a $250,000 capital gains exclusion. Homeowners are eligible to exclude capital gains on the sale of a principal residence as often as once every two years.
The law allows capital gain exclusions whether you "buy up" to a more expensive home or "buy down" to a less expensive one. The tax-free dollars can be used in any way you want. Consult your tax advisor for detailed advice about your particular circumstance.
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| Q |
What little-known folk remedy is said to help keep bats away from your home?
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According to some rural homeowners, if you tar and feather a two-by-four board and place it in your yard, it will ward off bats! |
 See More Real Estate Trivia > |
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The Michelle Sheehan Team
Gaston & Sheehan Real Estate
1420 HWY 685
Pflugerville, TX. 78660
Phone: 512-989-1054
Fax: 512-989-1094
Email: housegals@gmail.com
Born and raised in Austin, Texas no one knows the area better than me!! I am a broker/realtor whose University of Texas marketing background makes me the perfect choice for seller or buyer. Have fun, relax and know you are in the hands of an experienced professional broker/realtor who will guide you through the process of buying or selling your home with YOUR needs as top priority.  
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