Buying a house is probably the biggest purchase you will ever make and largest tax shelter you will ever enjoy. Imagine what it would be like when it came time to sell your house if the money wouldn't have to be designated by the government for any purpose.
You're probably wondering about eligibility requirements. There are two tests to meet in order to exclude the gain from the sale of your home. Reference: Department of the Treasury, Internal Revenue Service, Publication 523, Selling Your Home, 2007, page 10.
Basically, during the 5 year period prior to the sale of your home, you must meet the ownership test and the use test. The ownership test requires that you have owned your home for at least two years. The use test requires that you must have lived in the home as your primary residence for a minimum of two years.
In addition, the two year ownership test and the two year use test...(continued tomorrow)
See you with continued thoughts tomorrow, Kate
It's Hug Your Appraiser Day
For more detailed information you should consult a qualified tax professional, accountant, or tax attorney.
P.S. To read my article in full, visit Free Real Estate And Mortgage Articles
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