Capital gains tax as it pertains to home sales may change with new tax package. Both the House & Senate tax plans call for homeowners to live in their home for 5 of the previous 8 years to avoid paying a capital gains tax on any profits. Currently, the law calls for home sellers to live in their home for 2 of the previous 5 years to avoid a capital gains tax. The taxable gain amount stays the same at $250,000 for an individual of $500,000 for a married couple.
The senate version of the tax reform bill contains a provision where if home owners are under contract prior to Jan 1st 2018 even though they may not close the sale until some time in 2018, the former time frame for tax exemption will apply.
It’s too soon to tell which version gets to the president’s desk if any, but if you’ve owned your home for less than 5 years but more than 2 and are contemplating selling, now is the time. It is still possible to to get your home listed and under contract. Possibly even close the sale if we can secure a cash buyer.
Call to discuss how we can accomplish this.
As a Southwest Florida Real Estate Agent it’s my job to educate my clients and help them get exactly what they want and make sure their best interest are being considered in every detail of the purchase. This blog is all about educating you and empowering you with all the industry news, information, tips and things to consider before buying or selling your home. If you found this article interesting and know someone else that might benefit from it please feel free to share!
I’m always be available for personal service by phone or email, so feel free to contact us with questions any time! My offices are located on 2326 Del Prado Blvd. S., Cape Coral, FL 33990. You can reach me at 239-425-2503 or email me at Bob.Ashworth@gmail.com and you can visit my website at www.BobAshworth.com.