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Health & Fitness

3 Major Tax Issues Every Seller of Real Estate Needs to Know

Need more assistance with real estate? Contact Bruce Webb, Associate Broker, Coldwell Banker Preferred bruce@brucewebb.com www.brucewebb.com (734)392-6021

1) Increase in the exclusion from capital gains tax on the sale of a principle residence from $125,000 in capital gains to $500,000 for filing joint taxpayers ($250,000 exclusion of a profit for single taxpayer).  This exclusion can occur every 2 years. The repetitive ability is a great opportunity to buy and sell a principle residence and either move up or buy down.  There is no age restriction on who is eligible for this exemption.

2) First-time homebuyer incentives:

 -Save income in a tax-deferred IRA account with the purpose of saving for a down payment and withdraw down payment at any time without penalties for early withdrawal.

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 -Parents can save money in a tax-exempt savings account for the purpose of assisting children with a down payment for housing.

3) Investments in real estate.

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4) Reduction in capital gains tax rate from 28% to 20%.  This will increase the profitablility of a real estate holding.

 

Bruce Webb, Associate Broker, Coldwell Banker Preferred

bruce@brucewebb.com

www.brucewebb.com

(734)392-6021

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