Common misconceptions that applied under previous (maybe devious) tax law that no longer apply to the sale of residential property. You heard it, you remembered it, but now you have to un-remember it.

No longer relevant:

• No requirement to reinvest the sales proceeds into another home. Taxpayer does not have to buy equal or more expensive in 24 months.
• Requirement that taxpayer must be 55 or older is gone.
• Fix-up expenses, including "preparation for sale" repairs are no longer deductible anywhere for any reason.
• You moved 50 miles or more to avoid the two year rule -GONE.
• Nontaxable gain no longer is rolled over into the new residence.
• Renting your home while trying to sell generally will not ause tax poblems. However, a principal residence rented for more than two years will eliminate your tax exemption unless you move back in before sale.

If you have questions, give me a call. Uncle Sam likes to change his mind, and especially when parties exchange the Whitehouse.