Saturday, October 4, 2008
When You Sell Your Maine Home, Do You Owe Capital Gains?
Everyone knows enough to be dangerous right? Worried about the old rules and not up to snuff or have anxiety about what happens in your Maine home sale, tax wise now? Stop worrying and remember that you may not owe any capital gains tax to the Treasury Department. Back in the 1990's, new legislation became law letting you escape and get out of a capital gain on a sale for up to $250,000. If you are married, the sale of your primary residence if filing jointly could mean you are off the hook for up to $500,000 of the profit on your home sale. So why are you unsure and still want to see it in the tax code or hear it from a CPA? Probably because for along long time, and because you don't sell your home every day, this is for a five year plan. Things gets fuzzy. But you remember the days when you had to buy or build and a clock was ticking for up to two years to do the roll over into your next home to avoid the captial gain tax owned? Recall when the figure triggered if over a $125,000 gain, and when you had a one shot, over 55 years of age provision? Like most things in life, its not a simple one or two sentence provision. There are circumstances and events that shift to a different tax consideration. So have a tax preparer you trust on speed dial. Ask them before making major purchases or sales how this is going to affect you next April 15 before April 15th!
Maine REALTOR Andrew Mooers - Investment Real Estate In Aroostook, Washington, Penobscot Counties!