Good Information Articles

Capital Gains on Home Sales

If you are selling real estate it is important to understand the tax implications of your sale, particularly regarding capital gains.

Your home is considered a capital asset. When it is sold, the gains from the sale, after adjustment for the selling costs incurred, are taxable as capital gains. The amount of tax you must pay is dependent on the adjusted sale price of your home, the length of time you owned the home and whether or not the home was used as your primary residence.

Here's a breakdown of the current capital gains taxes based upon the length of home ownership:

If you buy and sell your home within a year, the capital gains are considered short-term and are taxed at the ordinary income rate.

If you sell your home after one year of ownership, but before two years of ownership, the gains will be taxed at the long-term capital gains rate, which is lower than the ordinary income rate.

If you own your home for two years, and if the home was your primary residence two of the past five years, you can avoid paying taxes on part of the sale price. Married couples will not be taxed on the first $500,000 of profit, while single individuals are not taxed on the first $250,000. Any gains above these limits will be taxed at the long-term capital gains rate.

If you don't qualify for the two-year tax rule, you may be able to reduce the taxable capital gains by deducting the cost of qualified home improvements from the sale price. You'll need valid receipts of improvement-related costs in order to take advantage of this incentive.

There are sundry other implications regarding capital gains on selling real estate. To learn more about special rules and exceptions that may apply to your particular situation, consult your local realtor, CPA or tax attorney.

Since the appraisal has such a great impact on the determination of the property's value, make sure to find someone who is well-qualified for performing the appraisal. Your Realtor can recommend a licensed or certified appraiser who is experienced and knowledgeable about the value of properties in your area.

Overall, real estate appraisals are an integral component in understanding a home's value.

Valerie Demerski is a Realtor with Barbara Demerski Real Estate in Northampton Massachusetts.

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

MORE ARTICLES:

Exotissimo Travel Offers Expedited Visa on Arrival to Myanmar
An often-cited complaint about traveling to Myanmar is that the visa application process can seem overly long and complicated. After the protests of September 2007 and even moreso after Cyclone Nargis ravaged the Irrawaddy Delta, global perception has been that the application process is overly long, too thorough and a sign that Myanmar is not welcoming to tourists.

Creative Marketing Ideas For Your Business
If you need to market your company, you know that marketing is getting more competitive everyday It seems each new day brings a different batch of marketing techniques, making it hard to keep up

The best Fourth of July parade in the U.S. in Creswell, Oregon, says an irreverent Oregon travel site
The parade that will run down the main street of tiny Creswell, Oregon, on Tuesday is fun and authentic. A real-life community event in this town of 4,000, it's got more soul than the made-up celebrations you see in big cities.

Tips in Complying with Requirements of Business Law
As a businessperson, or even an aspiring businessperson for that matter, once you enter the corporate jungle you are faced with continual challenges. Indeed, you would reap many benefits especially if your company is incorporated.

Home Is Where the Heart Is - Third of Brits Love Their Homes More Than Their Partners
Research out today reveals that people spend 79 percent more money on home improvements than they do on improving their relationship with their partner, with more than a third of people (35 percent) admitting they care more about their home than their loved one. Rated Tradesmen, an on-line service that matches tradesmen to customer-submitted jobs, questioned more than 1,000 homeowners to find out how emotionally attached people are to their homes.

Reasons To Use A Realtor When Buying A HUD Home.
When buying a HUD home, the detail and legalities can be intimidating. Therefore having a realtor to walk you through the process can make for a painless transaction.

Internet Marketing with Free Article Directories: 3 Mistakes to Avoid
There's no disputing the power of Internet marketing, nor the many facets that comprise Internet marketing. From pay-per-click campaigns and SEO optimization to email marketing and Web directory submissions, there are a seemingly endless number of ways you can promote your website. Increasingly, however, website owners are turning to free article directory submissions to drive traffic to their websites. Although free article directory submissions are low cost and take relatively little effort, there are common mistakes that render any effort ineffective. Here are guidelines to help you avoid those costly mistakes and to reap the greatest rewards from free article directory submissions.

How You Can Grab A Bargain On A New Home
If you are moving and are interested in buying a home for yourself, there are many ways in which you can grab a bargain on your new home Builders these days offer bargains to new homebuyers that get them fabulous discounts, mostly on ?quick move in? or ?spec? homes

Home Mortgages: How About Those 1.75% Loans?
You've undoubtedly heard or seen ads for mortgages with very low interest rates such as 1.75%.

Corporate Financial Advice For Your Business Too
There is probably a tendency to think of the Independent Financial Adviser offering help and advice only in the area of personal finances But the role is not restricted just to the individual

Internet Stock Trading Is Best, Quick And Dependable
Because millions of individuals all around the world are involved in internet stock trading, there is reason for them to be fearful whether such a type of stock trading is certainly safe or not, and also question whether claims of the risks of indulging in such kind of stock trading are well founded or not

How A Home Equity Line Of Credit Can Help Your Finances
A home equity line of credit unlocks your home?s value so it can work for you. Owning your home can provide you with a financial resource that can help you with your financial needs.

Ethnic Health & Health Disparities 101: Breakin' Down the Issues -- New International Podcast Show
Ethnic Health & Health Disparities 101: Breakin' Down the Issues is an international podcast show highlighting many of the current and newsbreaking health and medical issues affecting ethnic and health disparity communities around the world. Host and Medical Anthropologist Dr. Eric J. Bailey shares his unique approach in breaking down and explaining these critical health and medical issues that are connected to us one way or another.

Getting Ready to Sell Your Santa Monica Home
So you?ve been thinking about a new home lately It happens every day