Most of my clients profit from selling their homes, and they often have questions about capital gains tax. When you sell your primary residence, you are not taxed on your profit if (1) you have lived in the home for two out of the last five years and (2) your gain does not exceed $250,000 as a single taxpayer or $500,000 as a married couple filing jointly. Gains above these limits are taxed at the current rate of 15% for higher income taxpayers and 5% for lower income taxpayers. In 2008 the 15% rate will continue for higher income taxpayers; while the 5% lower income rate will drop to 0% for the 2008 tax year only. On January 1, 2009, the long-term capital gains tax rates will once again be 15% and 5% through 2010. Homeowners can use this tax-free provision every two years. As set forth in the American Job Creation Act of 2004, properties converted from a 1031 exchange property into a primary residence must be held and used as a primary residence for at least five years to qualify for the tax exemption. Consult your tax accountant for more detailed information regarding your particular circumstance.

	See All Tips In The "Tax Considerations" Category >
	See Complete Library Of Hundreds Of Tips In 30+ Categories >

The James Sanson Team
John Hall & Associates
4677 South Lakeshore Drive
Tempe, AZ 85282
Toll Free: 877-468-8483 ext 318
Fax: 888-821-6553

We sniff out some of the best deals for our buyers, and offer some of the leading marketing ways to sale your home. We believe we are the largest advertised real estate team in the valley. Come and learn why more buyers and sellers choose our services. We deal with homes throughout the valley in Maricopa and Pinal Counties. If you are looking for Maricopa homes for sale, Ahwatukee homes for sale, Casa Grande homes for sale, Coolidge homes for sale, Florence homes for sale, Chandler AZ homes for sale, Tempe Arizona homes for sale, Phoenix properties for sale, Tempe Arizona homes for sale and many other valley locations homes for sales we have some of the greatest bargains in the market.

www.AZBestBargains.com is brought to you by The James Sanson Team
NUMBER1EXPERT™ in real estate for Maricopa City, Queen Creek and Buckeye, Arizona

Read The James Sanson Team's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge