Hi Folks,
There are many ways realtors work for the real estate buying and selling public. Below is just one such instance. The National Assoc. of Realtors works with our lawmakers to assure the future of real estate in our country. That is why they call real estate "the American dream". For we are one of only a few countries in the world that have the dream of owning your own real estate.
We all bite the tax bullet every year, and are all looking for a way of optimizing our investment dollars. All dollars are not created equal. Matter of fact, with your 9-5 job wages you will find the least effective way to accumulate wealth. Uncle Sam has you in his sights, right between the cross hairs, when you are relying on your job and its wages to create a financial future. It isn't how much income you can generate, but how much can you keep that counts. In capital gains we have the ability to make money and then shelter it's gain with depreciation.
The issue of your home is treated differently than investment real estate. If you have lived in your home for two of the last five years, you, as an individual, can reap a profit of $250,000 and not pay a dollar in taxes. As a couple, it goes to $500,000 tax free. So if you lived in a home for 2 of 5 years and have a large amount of equity in that home, you may think about what happens if that legislation disappears. The taxes on $500,000 is a pretty penny. You folks that are on either coast or in Hawaii where the gains in real estate have gone through the roof, are in the cat bird seat and you're not the cat.
I know I talked about it before, but we need to keep a vigilant eye on our legislators. In two years we will have a presidential election, and that election will be won by whichever party impresses the most voters. Now I know we don't like to hear about buying votes, but we have created within Congress a collective Robinhood. When you hear about the "newest, greatest program", the first thing that should pop into your head is, who is going to pay for it or should I say how are they going to pay for it? We already know who.
I found this article in the NAR email that was sent to me. I hope it helps on the subject of capital gains.
PS. Well the elections are over and Robin Hood won. The bidding war was fierce, sounded more like a poker game than a campaign. I'll see your health insurance, and raise you a rescue plan for the banks 800 billion and counting, states, AIG, auto makers ....................................................................... The problem is they are playing with our money. I forget what senator said it but the story goes " a billion here and billion there and all of a sudden you're talking real money." With the increase in spending, taxes will have to compensate hold on to you pocket books.
In Your Service, Russ Prothero
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