PLEASE ActiveRain members * STOP blogging about this issue without the mention of CAPITAL GAINS.
If you are UNfamiliar with Capital Gains * PLEASE * PLEASE learn about them....they effect how many people buy and sell real estate as well as how they buy and sell stocks.
There is lots of information about this subject online and the EASIEST way to remember WHY they are important in real estate is found in this wiki-pedia entry.....Real estate sales are SOMETIMES subject to capital gains....knowing when and where is important when advising clients to buy or sell their investment and personal residence.
A capital gain is a profit that results from investments into a capital asset, such as stocks, bonds or real estate, which exceeds the purchase price. It is the difference between a higher selling price and a lower purchase price, resulting in a financial gain for the investor. Conversely, a capital loss arises if the proceeds from the sale of a capital asset are less than the purchase price.
Many countries impose a tax on capital gains of individuals or corporations, although relief may be available to exempt capital gains: in relation to holdings in certain assets such as significant common stock holdings, to provide incentives forentrepreneurship, or to compensate for the effects of inflation.