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Real Estate Tips
Tax Considerations >Taxpayer Relief

Legislation included in the 1997 federal budget made significant changes that improve a homeowner's ability to profit from the sale of real estate. The capital gains tax exclusions on the sale of a principal residence is just one of several benefits for homeowners. When you sell a home you have owned and use for two of the five years prior to the sale, married couples are allowed to keep up to $500,000 in tax-free profits and taxpayers filing as singles can keep up to $250,000 before paying capital gains tax.

Long-term capital gain is also taxed at lower rates as a result of the Jobs and Growth Tax Relief Reconciliation Act passed in 2003. The maximum capital gains tax rates dropped from 20% to 15% and from 10% to 5%, effective for sales and exchanges taking place on or after May 6, 2003 and through December 31, 2007. In 2008 the 15% rate continues for higher income taxpayers, while the 5% rate for lower income taxpayers drops to 0%, but only for the 2008 tax year. On January 1, 2009, the 10% and 20% rates will be reinstated.

Consult your tax advisor for advice regarding your particular circumstance.

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Real Estate Trivia
Q 
What Elvis Presley film showcased Coco Palms in an outrigger canoe wedding scene?

A 
Blue Hawaii (1961)
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Pete Dijkstra & Team, REALTOR®, real estate agent and broker for Chandler, Gilbert and PhoenixArizona home listings, property and land for sale - NUMBER1EXPERT(tm)

Pete Dijkstra
RE/MAX Elite

2450 S Arizona Ave. #1
Chandler, AZ 85286
Phone: 480-812-9200
Fax: 480-760-2330
Email: petedijkstra@NUMBER1EXPERT.com


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