If you are thinking of selling your home and your house has risen in value since you purchased it, or you have accumulated a lot of deferred profit from previous sales, the Taxpayer Relief Act passed in 1997 could be of tremendous value.

Prior to this law, when a homeowner moved to a smaller home, relocated to a less costly area, or made a decision to rent, they were left with unfavorable tax consequences. The old tax law allowed people who sold their homes to defer tax on any profit by buying a replacement home of at least equal value within two years. At age 55, they could permanently escape tax on up to $125,000 of profit, but any profit in excess of that amount was taxable unless a new home was bought.

The good news is that with homes sold after May 6, 1997, homeowners can make as much as $500,000 tax-free profits on the sale of a principal residence for joint filers or $250,000 for single filers. The $500,000 capital gains exclusion removed taxes as a consideration for most home sellers by giving them flexibility to trade up or down. It has also allowed homeowners to preserve the savings value of a home when they sell, provided they use the property as their principal residence for two of the prior five years prior to the sale.

Consult your tax advisor for your particular circumstance.

	See All Tips In The "Tax Considerations" Category >
	See Complete Library Of Hundreds Of Tips In 30+ Categories >

The Moulton Team
Moulton & Associates Realtors
2005 S Ankeny Blvd Suite 400
Ankeny, IA 50023
Phone: 515-965-7876
Fax: 515-965-7881
Email Heath: heath@weselliowa.com
Email Julie: julie@weselliowa.com

The Moulton Team is one of Iowa's largest producing Real Estate Teams serving Des Moines and surrounding suburbs. The only Number1 Expert Realtor in the Greater Des Moines area, our team specializes in offering our clients below market interest rates that allow our buyers to save thousands of dollars in monthly payments on any home they purchase. With over $300 Million in career volume and over 400 homes sold in the last 3 years, The Moulton Team can help you find your next home when moving to the Greater Des Moines area.

www.MOULTONREALTORS.COM is brought to you by The Moulton Team
NUMBER1EXPERT in real estate for Des Moines and Ankeny, Iowa

Read The Moulton Team's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge