How
the
TAXPAYER
RELIEF ACT OF 1997
Affects Real Estate...TAXPAYER
RELIEF ACT OF 1997
Affects Real Estate...
The Taxpayer Relief Act of 1997 brings about a number of positive changes
for the home buyer and home seller. The news can provide tremendous new
opportunities for tax savings. Mountain View Realty has assembled a partial
summary of the legislation here for your reference.
For Sellers!
New rules on exclusion of gains from the sale of a personal
residence
It allows married taxpayers filing a joint return to exclude up to $500,000
of gain on the sale of their primary residence. Single taxpayers are allowed
to exclude up to $250,000 of gain. In order to qualify for this exclusion,
the homeowner must have lived in and used the home as their principle
residence two out of the last five years. A homeowner is allowed to take
this exclusion once every two years. There is also no limit as to the
number of times this exclusion may be taken.
For Buyers!
Penalty free withdrawals for education and starter homes
The 10 percent additional tax on early withdrawals from IRA and 401K plans
does not apply to withdrawals (after 1997) that are used to pay qualified
higher education expenses, or to pay a first time home buyer's costs of
purchasing a principal residence.
To Learn More...
The Taxpayer Relief Act of 1997 contains several key provisions which
you should be aware of. Your personal tax advisor is the best resource
for information. We suggest that you contact a professional to learn exactly
how this legislation impacts you.
The National Association of Realtors, the Pennsylvania Association
of Realtors and the Pike/Wayne Association of Realtors worked
very diligently for the passage of these favorable real estate tax law
provisions. It's up to you to take advantage of them! Contact us today
for more information.
For specific information about properties, communities,
lakefronts or lakerights, please consult one of our Realtors at 800-510-0130
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Selling
the Poconos...
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