Darlene Stouder
360-280-2576

Tax Benefits

The tax laws beginning in 1998 and in some cases a little

earlier have changed in regards to homeownership

and the previous requirement to reinvest profits

from the sale of a principal residence.

The new law allows married taxpayers filing a joint return

to exclude up to $500,000 of gain on the sale of their

principal residence. Single taxpayers

can exclude up to $250,000 of gain.

To qualify for the exclusion, homeowners must have lived in

and used the home as their primary residence for

TWO OUT OF THE PRECEDING FIVE YEARS.

Homeowners are allowed to take the exclusion

ONCE EVERY TWO YEARS.

Plus,

HOMEOWNERS MAY TAKE THE EXCLUSION

AS MANY TIMES AS THEY LIKE,

there is no cap on how much total gain they

may exclude in their lifetimes.

THIS IS A SIGNIFICANT CHANGE IN THE TAX LAW

CAUTION: Before you make financial decisions based on tax laws,

consult an expert on taxes as they relate to real estate.

Want to read the rest of the chapter on tax benefits? Not a problem, all you have to do is request the Free Buyer's Book, which will include all the rest of the Tax Benefits chapter. Simply fill out the form below. As soon as you click the submit button your free copy of the Buyer's Book will be on it's way to you.

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