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School Reports in Phoenix, Ahwatukee, Chandler and Tempe, Arizona
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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 
Into what category do forty-four percent of home buying households fall?

A 
Forty-four percent of home-buying households are made up of married couples with dependents.
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Mark Holodnak, REALTORŪ, real estate agent and broker for Phoenix, Ahwatukee, Chandler and Tempe, Arizona home listings, property and land for sale

Mark Holodnak
Homesmart

3131 E Camelback Rd. Ste 125
Phoenix, AZ 85016
Cell: 480.747.2709
Office: 602.218.5338
Fax: 480.907.2344
Mark@MarkSellsAz.com

I have helped many buyers purchase the best home at the best price and helped sellers get the best price for their home in this market. Ask me how I can help you.

REALTOR Equal Housing ABR ePro SFR


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