I REPRESENT YOU, NOT THE BUILDER!
I represent you, I work for you, I protect your best interest
I find the best builder for your needs and negociate your price and incentives.
I preview all the homes within your criteria
I disclose all known facts about the builder and the community


 

The Federal Tax Code allows married taxpayers to exclude from capital gains taxes up to $500,000 in profits from selling a home (singles can exclude $250,000). In order to qualify for this exemption, you must prove that that the home has been your principal residence for at least two out of the last five years. The establishment of the home as a principal residence depends on the facts of each homeowner's circumstance. Here are two cases to consider.

Homeowner A has lived at 25 Pine Drive for 12 years. Although he stays at his vacation cottage in another town for up to three months out of each year (sometimes more), 25 Pine Drive is his principal residence, where he lives most of the time. When he sells the home, Homeowner A (filing as a single individual) can keep up to $250,000 in tax-free profit.

Homeowner B buys 108 Maple Street, intending to live there. He rents it out while waiting to sell his current home, where he has lived for six years. His principal residence sells at the end of two years. Homeowner B moves into his new house, lives there for three months, and then decides to travel. After a six-month trip, he regrets buying 108 Maple Street and sells it. Even though he has owned the house on Maple Street for over two years, it won't qualify as "owner-occupied", because he only lived in it for a few months. Thus Homeowner B is not eligible to claim the tax exemption when he sells the house on Maple Street.

Consult your tax advisor for advice about your particular circumstance.

	See All Tips In The "First Time Buyers" Category >
	See Complete Library Of Hundreds Of Tips In 30+ Categories >

Donna Richards
Tarbell Realtors
24445 Lupine Lane
Corona, CA 92883
Cell: 951-858-4059
Fax: 951-346-3735
main: ruffyrichards@aol.com

My optimistic attitude, caring approach and professional expertise are why clients keep coming back and recommending me to their family and friends. With my solid experience in real estate sales, I have upheld the time honoured practice of putting the customer first! Whether you are purchasing for the first time, wish to upgrade your current property or are relocating to area, my sound real estate direction, accurate property evaluations, and proven marketing game plans, tough negotiation and open communication, guarantee results every time!

www.HomeSitePortal.com is brought to you by Donna Richards
NUMBER1EXPERT™ in real estate for Corona, California

Read Donna Richards' Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge