taxfree: Investor Report: Hidden Tax Pitfall
- 10/07/08 02:25 AM
Here's a tax alert for real estate investors who use popular tax-free exchanges: The recently signed federal housing legislation contains a hidden zinger that could cost you thousands of dollars if you don't plan around it. As of next January 1st, investors who exchange into rental or second home properties that they later convert into their personal homes no longer will be eligible for the full $250,000 to $500,000 tax-free exclusions now available on sales of principal residences. Instead, they'll need to allocate their time of ownership between taxable investment or second home usage and non-taxable principal residential usage. To … (0 comments)
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