What are the tax laws on capital gains?
Tax Free Capital Gains In sales of principal residences, gains up to $500,000 for married couples ($250,000 for singles or couples filing separately) are tax-free. This generous break can be “recycled” every two years. You must have owned the home and used it as your primary residence for at least two of the five years preceding the sale (talk to your accountant for the new rules on homes acquired through 1031 Tax Deferred Exchanges).
Always consult your accountant or tax attorney prior to selling. Tax Free Capital Gains In sales of principal residences, gains up to $500,000 for married couples ($250,000 for singles or couples filing separately) are tax-free. This generous break can be “recycled” every two years. You must have owned the home and used it as your primary residence for at least two of the five years preceding the sale. Buy a Fixer and Sell it for Profit Now is the time to do it! You can purchase and live in the house for two years, do repairs and then pay no federal taxes on profits up to $500,000 for married couples ($250,000 for singles). Like the profit? Buy another house and do it again! Exclude Gains Under The New Rule Are you sitting on a hefty gain that could be excluded under the new rules? Think seriously about selling. Replace the house with a less expensive one and invest the leftover cash. Don’t waste time. This rule is so favorable; it’s almost too good to be true! Hint: On expensive prope
