Tax Considerations

Your home is your castle, and the source of much of your wealth! The I.R.S. has special considerations for selling a home which has appreciated in value. Basically speaking every two years a home owner can sell their primary residence and exclude this gain from income taxes. This rule applies to primary residences only, not second homes, vacation homes, or rental & investment properties. Call you tax advisor about how a sale of your home will affect your tax situation. Capital Gains are a good thing when it comes to primary residences! Remember you need to sell the house to get the gain!

Investment property sales can potentially be sheltered by the use of a Section 1031 Tax Free Exchange. Section 1031 Exchanges, which have become more popular since the mid-90s, allow investors to defer the tax on capital gains until some point in the future. These Exchanges should be reviewed by an experienced attorney and accountant, but may provide an opportunity for significant tax deferral for the right situation. Remember: get advice from a good agent and your own tax advisor.

55+ Communities are the fastest growing segment of the Real Estate Market in many areas today. Ask your agent about potential future gains each Community offers. 55+ Communities offer the potential of appreciation as more Baby Boomers move to 55+ Communities. This demand will continue for years to come. Boomers selling their homes have appreciated gains or have paid off their mortgages so they have plenty of buying power! Contact Us for an agent who can provide the statistics on where your Real Estate Market is headed.