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Tax Information |
All information below is for informational purpose only. We are not here to give your tax and/or legal advice.
Please see your legal and/or tax advisor for more information.
Exclusion of Capital Gains According to
The Real Estate Journal,
the general rule of thumb is that if you sell your primary residence, you typically can exclude a gain of as
much as $500,000 if you're married and filing a joint return with your spouse (or $250,000 if you're single
or married filing separately) and meet certain conditions.
To be eligible for the full exclusion, you typically must have owned the home and lived in it as your
principal residence for at least two of the five years prior to the sale. These exclusion amounts aren't
indexed for inflation. (When calculating your cost basis, don't forget to include additions and other
"improvements," such as a new roof, deck or heating system. However, this subject and other adjustments you
may need to make can be tricky. For details, see IRS Publication 523.) Please see your legal or tax advisor
for further details.
1031 Tax Deferred Exchange according to
IPX (PDF link),
the tax deferred exchange, as defined in Section 1031 of the IRS Code of 1986, as amended, offers investors
one of the last great opportunities to build wealth and save taxes. The investor sell their investment
property, use all of the equity to buy replacement investment property, defer the capital gain tax that would
ordinarily be paid and leverage all of their equity into the replacement property. The two requirements must
be met to defer the capital gain tax: 1) you must buy "like kind" replacement property and 2) you cannot
receive cash or any benefits unless you pay capital gain taxes on the money.
Please see your legal or tax advisor for further details.
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