Is there a new capital gains tax that you need to pay if you sell and buy in 2010?

Asked by Oxfordbw, Brookline, MA Mon Feb 22, 2010

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Giti Saeidian’s answer
Giti Saeidian, , Brookline, MA
Wed Jan 12, 2011
Hello Oxford,

It is about a year past since you posted your question. Any action yet??

The respond to your question is really based on what you are planing to do? If you are a seller and buyer at the same time, as long as you buy "like kind property" (multifamily for multifamily and condo for condo, or single family for single family) there is no capital gain due to government. and if there is any, it is after 500K deduction if you file your taxes joint , and $250K if you file single.
I would be happy to talk to you about your options, and since my specialty is in Brookline real estate, I would be able to price your home to sell based on my experience in this market, and find you a suitable place too.

You can reach me at 617-966-9823.

Giti Saeidian
Chobee Hoy Associates
18 Harvard Street
Brookline MA
0 votes
Michelle Lane, Agent, Chestnut Hill, MA
Thu Jul 1, 2010
There is not a new tax, but the capital gains tax rates are set to change in 2011. Typically, short-term capital gains are taxed at the investor's ordinary income tax rate, Long-term capital gains are taxed at a lower rate than short-term gains. In 2003, this rate was reduced to 15%, and to 5% for individuals in the lowest two income tax brackets. These reduced tax rates are effective through 2010; if they are not extended before that time, they will expire and revert to the rates in effect before 2003, which were generally 20%.

The reduced 15% tax rate on qualified dividends and long term capital gains, previously scheduled to expire in 2008, was extended through 2010 As a result:

In 2008, 2009, and 2010, the tax rate on qualified dividends and long term capital gains is 0% for those in the 10% and 15% income tax brackets. After 2010, dividends will be taxed at the taxpayer's ordinary income tax rate, regardless of his or her tax bracket.

After 2010, the long-term capital gains tax rate will be 20% (10% for taxpayers in the 15% tax bracket).
After 2010, the qualified five-year 18% capital gains rate (8% for taxpayers in the 15% tax bracket) will be reinstated.

But, as was previously pointed out, you only have to worry about Capital Gains when selling your home IF you made more than $250K of gain on your home for an individual and $500K for a married couple. And you are able to deduct the commission you pay a realtor to sell your home when calculating your gain. Hope that helps.

0 votes
Marita Topmi…, Agent, Indianapolis, IN
Mon Feb 22, 2010

Check with a competent tax advisor for details about investment

For most homesellers, the federal government enacted reforms that now
exclude up to $250,000 to single taxpayers in captial gains tax for profits
on the sale of a principal residence/ $500,000 for married taxpayers.

The exemption may be used repeatedly, as long as the homeowners have both owned and occupied
the property as their residence for at least 2 of the last 5 years.

On investment real estate, the required period for a noncorporate taxpayer was changed from 18 months
to 12 months for long-term capital gain.

Hope that helps,

Assoc Broker
Indianapolis, Carmel, Fishers
0 votes
Heidi Zizza, Agent, Framingham, MA
Mon Feb 22, 2010
Im not sure about any NEW regulations. However if you are going to buy and sell in 2010 you should do a 1031 exchange and pay no capital gains. You have restrictions on purchase as it must be a like kind exchange. If you would like I can refer you to an Exchange Company in Boston who can run the scenarios with you. They are also experts on current capital gains regulations!
You can email me at
Heidi Zizza
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