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58703 : Real Estate Advice

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Activity 9
Fri Mar 22, 2013
Edith Karoline Jasser answered:
Read this and if you want to continue the article I will place the link below: But I think this part will answer in detail your above question....Should be kind of good news is it?
Capital gains home-sale tax break a boon for owners
By Kay Bell •

What's the best tax break available to Jane and John Q. Public? If they're homeowners, it's selling their house.

Homeowners already know the many tax breaks that Uncle Sam offers, most notably mortgage interest and property tax deductions. Well, he also has good tax news for home sellers: Most of them won't owe the Internal Revenue Service a single dime.

When you sell your primary residence, you can make up to $250,000 in profit if you're a single owner, twice that if you're married, and not owe any capital gains taxes.

"Most people are not going to have a tax obligation unless their gain is huge," says Bob Trinz, a senior tax analyst at RIA, which provides tax information and software to tax professionals.

Some sellers are surprised by this break, especially if they've been in their homes for a while. That's because before May 7, 1997, the only way you could avoid paying taxes on your home-sale profit was to use the money to buy another, more-expensive house within two years. Sellers age 55 or older had one other option. They could take a once-in-a-lifetime tax exemption of up to $125,000 in profits. And in all instances, there was tax paperwork (Form 2119) to fill out to show that you followed the rules.

But when the Taxpayer Relief Act of 1997 became law, the home-sale tax burden eased for millions of residential taxpayers. The rollover or once-in-a-lifetime options were replaced with the current per-sale exclusion amounts.

"There is some logic to this law change because most people under the prior rules didn't recognize a taxable gain because they rolled it over into another residence," says Trinz. "The change essentially makes it easier to dispose of your residence."

Still some requirements to meet
If you used pre-1997 rules for residential sales, don't worry. That doesn't disqualify you from claiming the exclusion on any residential sales now. The law change applies to all sales since it took effect.

Another bonus of the new rules: You don't have to buy another home with your sale proceeds. You can use the money to travel to Europe in style, buy an RV and drive across the country or get all those designer shoes you never could afford before.

Even better, there's no limit on the number of times you can use the home-sale exemption. In most cases, you can make tax-free profits of $250,000 (or $500,000 depending on your filing status) every time you sell a home.

Ah, but we are talking taxes here. You did notice that phrase "in most cases," didn't you? There's always a catch. Before you put a "For Sale" sign in the yard, you need to make sure your house-sale situation is one of those "most cases."

First, the property you're selling must be your principal residence. That means you live in it. This tax break doesn't apply to a house or other property that you have solely for investment purposes. In those cases, the usual capital gains rules apply.

Read more:

Good Luck to you

Sincerely yours,
Edith YourRealtor4Life & Chicago, North Shore & Northern Illinois Expert
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Thu Jun 20, 2013
Clyde Thorne answered:
Land for mobile homes is very few. You will end up out further from Minot and will either have to put in a well and septic system, depending on the land location. Our rough weather is very hard on mobile homes. There is some land west of Minot and in DesLacs. if you need more info, please contact me. ... more
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Wed Jun 12, 2013
Anna M Brocco answered:
Average days on the market does vary by exact location, pricing, condition, size, schools, etc.; for specific detailed information, do work work with/ask any local agent.
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Fri Dec 14, 2012
Bob Sundberg asked:
This question was asked from this property:
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Wed Jun 19, 2013
Donna Foster answered:
You would be much better off buying if you're going to pay out that much a month. Give me a call when you're ready. My name is Donna Foster. (701)833-7953. I work with Watne Realtors ... more
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Tue Jun 19, 2012
Lloyd Ann Caston answered:
Wed Feb 29, 2012
Dale Lawson answered:
Mon May 13, 2013
Alecia Berg answered:
There are many rural properties for sale around Minot! What are you looking for in a home (bedrooms, bathrooms, year built, price range, etc)? Please check out my wesite or email for more information! ... more
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Sat Oct 20, 2012
Kausha Bakk, ABR, e-Pro answered:
Hi Daniel! The market when you lived here was very consistent, as it is today. We did see price increases the end of 2003 and in 2007 another increase of about 15%. It is a great time to sell in the Minot area with so many people moving into the market, as well as a great time to buy with the interest being at all time low's (4.25%!). Our market tends to stay strong because of the Minot Air Force Base, they are a great asset to our local economy. We have also become home to many oil companies who have brought workers from across the country. So it is also a great time to scoop up some investment properties since there is a demand for rentals as well! Please let me know if there are any other questions or information I can get for you!! ... more
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