Capitol Gains Exclusion Rule Change - Effective 1 January 2009
As someone who has been a property investor for many years, this information struck me personally and I felt that it was important to share with others.
Please read through the following information, always do your homework, check with your CPA and attorney to clarify any questions and make sure that you know the rules...they do change.
If you are interested in buying or selling property in Palm Coast/Flagler County Florida...feel free to contact me with any questions or comments....Kristi
Capitol Gains Exclusion Rule Change - Effective 1 January 2009
The Housing and Economic Recovery Act of 2008 has several benefits for home buyers, such as a $7500.00 credit if you have not owned a home in the past three years and expanded loan limits for many areas around the United States.
But what is not apparent is, nestled deep in the Housing and Economic Recovery Act of 2008, (page 690 of 694) are new rules for the Capital Gains Exclusion, most people have not heard about. The new rule effects sellers and investors who were buying a property to live in for a couple of years, moving to a new property and keeping the other property as a rental. There is a new formula to determine your tax based on the number of days you lived in your home.
If you are a seller, I believe it is imperative for you to determine if this new rule will impact you directly. Have a conversation with your tax professional or accountant to see exactly how this bill will affect you and your tax situation. It may be a big advantage to sell now, before the end of the year for many tax payers.
CLICK HERE for the formula and more great information to determine your tax liability.
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