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Real Estate Tips
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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Real Estate Trivia
Q 
What information does nearly every state in America require the seller of a home to reveal to the buyer?

A 
Most states require disclosure of any existing problems or conditions that could affect the value of the house.
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Joe and Billie Cockrell, REALTOR®, real estate agents and broker for Branson, Shell Knob and Hollister, Missouri home listings, property and land for sale - NUMBER1EXPERT(tm)

Joe and Billie Cockrell
Tri-Lakes REALTORS

2837 State Highway, Suite 1
Branson, MO 65616
417-880-3988
417-880-7516
bccockrell@gmail.com

WELCOME TO THE BRANSON AND THE TRI-LAKES AREA. Helping you find your dream home - is what we do - regardless of how long it takes or how large or how small you want that home to be - perhaps it's a second home - you are in charge - you tell us what you want and we will do our best to help you find it. We know you have many choices - we hope you choose us. We will work hard for YOU!

REALTORGRIMLSRELO


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