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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 building has the largest windows in the world?

A 
The Palace of Industry and Technology in Paris, France has three matching windows, each 715 feet high and 164 feet wide and comprised of multiple panes of glass.
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The Kathy Gagnon Team, REALTOR®, real estate agents and broker for Chester Springs, Downingtown, Exton and West Chester, Pennsylvania home listings, property and land for sale - NUMBER1EXPERT(tm)

Kathy Gagnon
Coldwell Banker Preferred

390 Waterloo Blvd
Exton, Pa 19341
Mobile: 610-304-9421
Business: 610-363-6006
Kathy@KathleenGagnon.com
Kacie Gagnon: kaciegagnon@comcast.net

When only the best will do....

REALTOR




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