|
All agents are NOT alike! Find out why I am a top real estate expert. Call me: 801-573-1675.
|

Sign Up For My eNewsletter, FREE! There are always important changes happening in the real estate market, locally and nationally. These changes can affect YOU. Find Out More > View All Offers >
|

Insightful The house we found is even more perfect for us than we realized when we decided to purchase. Sandy and Preston Motes Read Quote > View All Quotes >
|
Compare three mortgages at one time.
Download TripleCalc now. It's free.
|
Sally Domichel is one of The Top
Selling Real Estate Experts Find Out More > |
|
|
 |
|
The Best Salt Lake
City, Sandy and Draper Web Sites |
|
News and
Media |
Local
Newspapers |
|
|
|
|
Chamber of Commerce
|
Business &
Economy |
|
|
|
|
Transportation |
Local
Government |
|
|
|
|
Salt Lake City, Sandy and Draper Area Maps & Useful Local Web Sites Request my Free Salt Lake City, Sandy and Draper Relocation Package. It's packed full of useful and important information about the Salt Lake City, Sandy and Draper, Utah area. Don't move here without it! Remember: I'll send it to you for free and without obligation. Just fill out the form and I will send it right out... 
Tax Considerations >Your Tax Free Profits
Significant tax reform legislation was signed into law with the Taxpayer Relief Act of 1997. This legislation replaced both the one-time $125,000 tax-free exclusion for homeowners aged 55 and older, and the "rollover" deferment of capital gains tax requiring the purchase of a replacement home of higher or equal cost within two years of the sale of your principal residence.
With this change, a married couple filing their taxes jointly pays capital gains taxes only on that portion of home sales profits that exceeds $500,000. Single taxpayers, heads of households, and married persons filing separately may exclude up to $250,000. The exclusion is available for all sales of homes that occurred on or after May 6, 1997. Homeowners can use this tax-free provision every two years.
You are allowed to keep these tax-free profits only if you have owned and used the home as your principal residence for two out of the five years prior to the sale of the property. Although the regulations do not require continuous occupancy, the IRS specifies that your principal residence must be the home you use for the majority of time during the year. Consult your tax advisor about your personal circumstance.
|
| Q |
What mortgage transactions between borrowers and lending institutions operate in the private sector of the economy?
|
| A |
Conventional mortgages are private sector transactions that are not insured or guaranteed by the government. |
See More Real Estate Trivia > |
|
|
|
|