Please call your Accountant!
Please, please call your accountant before you consider selling your home.
Recently, we have had numerous people that were deciding to sell their home - without thinking about the tax consequences. The tax laws changed in 1997. If you have lived in your home for more than two years you are basically home free. Uncle Sam allows you to pocket up to $250,000 in profit if you are single and up to $500,000 if you are married. Yes, you can pocket it if you wish or you can put this money into a new home. The important thing to remember is TWO - 2 Years. This is very rigid - If you are even just a few days shy of this anniversary you will have to pay tax on the profits. This past year has proven to be so very profitable for so many people that own homes here in Arizona. It is a shame to give a huge percentage to Uncle Sam if you don't have to. So, the lesson here is before you even think about selling your home - Talk to your accountant!
For more information:
Bankrate article
Recently, we have had numerous people that were deciding to sell their home - without thinking about the tax consequences. The tax laws changed in 1997. If you have lived in your home for more than two years you are basically home free. Uncle Sam allows you to pocket up to $250,000 in profit if you are single and up to $500,000 if you are married. Yes, you can pocket it if you wish or you can put this money into a new home. The important thing to remember is TWO - 2 Years. This is very rigid - If you are even just a few days shy of this anniversary you will have to pay tax on the profits. This past year has proven to be so very profitable for so many people that own homes here in Arizona. It is a shame to give a huge percentage to Uncle Sam if you don't have to. So, the lesson here is before you even think about selling your home - Talk to your accountant!
For more information:
Bankrate article
posted by David Thomas at
6:39 PM
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