Nate Womack
(925) 998-9449
DRE 01369153
(925) 998-9449
DRE 01369153
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Nate's Neighborhood Notes
The following is an excerpt from an article written by Kay Bell for Bankrate.com last month. For the full article go to my website and click on the link in the newsletter.
Home Sweet Homeowner Tax Breaks
When you sell
When you decide to move up to a bigger home, you'll be able to avoid some taxes on the profit you make. Years ago, to avoid paying tax on the sale of a residence, a homeowner had to use the sale proceeds to buy another house. In 1997, the law was changed so that up to $250,000 in sales gain ($500,000 for married, filing jointly) is tax-free as long as the homeowner owned the property for two years and lived in it for two of the five years before the sale.
If you sell before meeting the ownership and residency requirements, you owe tax on any profit. The IRS provides some tax relief if the sale is because of a change in the owner's health, employment or unforeseen circumstances. In these cases, the tax-free gain amount is prorated.
A ruling by the IRS in late 2002 could put more dollars in homeowners' pockets when they must sell before they qualify for the full tax break. The Treasury has defined the unforeseen circumstances that often force homeowners to sell and under which they now can get some tax relief.
Unforeseen circumstances
·Death.
·Divorce or legal separation.
·Job loss that qualifies for unemployment compensation.
·Employment changes that make it difficult for the homeowner to meet mortgage and basic living expenses.
·Multiple births from the same pregnancy.
A partial exclusion can be claimed if the sale was prompted by residential damage from a natural or man-made disaster or the property was "involuntarily converted," for example, taken by a local government under eminent domain law.
Second home sales also can provide some tax benefits, but not as much as they did in the past, thanks to a law that took effect in 2008. Previously, you could move into your vacation property, live in the home as your primary residence for two years and then sell and pocket up to $250,000 or $500,000 profit tax-free. Now, however, you'll owe tax on part of the sale money based on how long the house was used as a second residence.
To read the entire article click here.
As of February 13, 2014, there were 82 total units (detached homes, condominiums, and townhomes) available for sale in the Dublin market. Twenty nine of those total listings are either condos or townhomes. There are 83 homes pending and the inventory is at 2.34 months.
Home Sweet Homeowner Tax Breaks
When you sell
When you decide to move up to a bigger home, you'll be able to avoid some taxes on the profit you make. Years ago, to avoid paying tax on the sale of a residence, a homeowner had to use the sale proceeds to buy another house. In 1997, the law was changed so that up to $250,000 in sales gain ($500,000 for married, filing jointly) is tax-free as long as the homeowner owned the property for two years and lived in it for two of the five years before the sale.
If you sell before meeting the ownership and residency requirements, you owe tax on any profit. The IRS provides some tax relief if the sale is because of a change in the owner's health, employment or unforeseen circumstances. In these cases, the tax-free gain amount is prorated.
A ruling by the IRS in late 2002 could put more dollars in homeowners' pockets when they must sell before they qualify for the full tax break. The Treasury has defined the unforeseen circumstances that often force homeowners to sell and under which they now can get some tax relief.
Unforeseen circumstances
·Death.
·Divorce or legal separation.
·Job loss that qualifies for unemployment compensation.
·Employment changes that make it difficult for the homeowner to meet mortgage and basic living expenses.
·Multiple births from the same pregnancy.
A partial exclusion can be claimed if the sale was prompted by residential damage from a natural or man-made disaster or the property was "involuntarily converted," for example, taken by a local government under eminent domain law.
Second home sales also can provide some tax benefits, but not as much as they did in the past, thanks to a law that took effect in 2008. Previously, you could move into your vacation property, live in the home as your primary residence for two years and then sell and pocket up to $250,000 or $500,000 profit tax-free. Now, however, you'll owe tax on part of the sale money based on how long the house was used as a second residence.
To read the entire article click here.
As of February 13, 2014, there were 82 total units (detached homes, condominiums, and townhomes) available for sale in the Dublin market. Twenty nine of those total listings are either condos or townhomes. There are 83 homes pending and the inventory is at 2.34 months.
If you would like further assistance of either purchasing or selling your home please feel free to contact me using the form on the contact page. Also, I do have additional information and documentation that is not up on the website. I would be happy to assist you in answering you real estate questions. If you prefer email, you can email me at info@Homes-Dublin.com
February 2014