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Real Estate Tips
Tax Considerations >Taxpayer Relief

Legislation included in the 1997 federal budget made significant changes that improve a homeowner's ability to profit from the sale of real estate. The capital gains tax exclusions on the sale of a principal residence is just one of several benefits for homeowners. When you sell a home you have owned and use for two of the five years prior to the sale, married couples are allowed to keep up to $500,000 in tax-free profits and taxpayers filing as singles can keep up to $250,000 before paying capital gains tax.

Long-term capital gain is also taxed at lower rates as a result of the Jobs and Growth Tax Relief Reconciliation Act passed in 2003. The maximum capital gains tax rates dropped from 20% to 15% and from 10% to 5%, effective for sales and exchanges taking place on or after May 6, 2003 and through December 31, 2007. In 2008 the 15% rate continues for higher income taxpayers, while the 5% rate for lower income taxpayers drops to 0%, but only for the 2008 tax year. On January 1, 2009, the 10% and 20% rates will be reinstated.

Consult your tax advisor for advice regarding your particular circumstance.

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Real Estate Trivia
Q 
Which nation, fueled by an oil and manufacturing boom, claims the world's longest building?

A 
The "Linear City" of Malasia is currently the longest.
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Erin Romanski and the Romanski Group, REALTOR®, real estate agents and broker for Lafayette, West Lafayette and Purdue University, Indiana home listings, property and land for sale - NUMBER1EXPERT(tm)

The Romanski Group
Keller Williams Realty

22 Executive Drive
Lafayette, IN 47905
Direct: 765-532-6148
Fax: 765-588-4841
Email: erin@romanskigroup.com

“We not only want to meet your expectations, we want to exceed them.” When we agree to work together, we pledge to you a superior level of service that is prompt, efficient and courteous! We want our clients to enjoy their real estate transactions and refer to us as their Realtors for life! Erin Romanski is a licensed Realtor in the State of Indiana. Erin Romanski in Lafayette

Equal Housing MLS REALTOR


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