Tax Issues

The following is a chart outlining the changes in the Taxpayer Relief Act of 1997.

TAXPAYER RELIEF ACT OF 1997

OLD RULES
(REPEALED)

 

 

 

 

 

NEW RULES
(EFFECTIVE MAY 7, 1997)

 

Principal Residence

 

 

Qualifying Property

 

 

Principal Residence

 

 

Any 3 of the Last 5 Years of Ownership

 

Length of Occupancy

 

Any 2 of the Last 5 Years Ownership

 

$125,000 (IRC§121)

 

Tax Exclusion or Gain

$250,000 for Individual or $500,000 for a Joint Return*

 

Once in a Lifetime (IRC§1034, Rollover)

 

Frequency of Use

 

Every Two Years**

 

55 or Older

 

Age of Taxpayer

 

No Age Restriction

 

Must Be Equal or Greater

 

Replacement Property

 

No Replacement Necessary Replacement Property NOT considered

 

No

 

Deduction for "Loss"

No

 


 *
If one spouse has used the deduction in the prior two years, only $250,000 is available for the  other spouse. Once two years have passed since the last exclusion the $500,000 would be eligible.

 **A pro rate portion of the exclusion is allowed if the sale is required by change in place of  employment, health or other unforeseen circumstance.



Home  |  Property For Sale  |  Property Management  |  Placer County Info  |  Contact Us  |  Short Sales?  |  Foreclosure Alternatives  |  Foreclosure Process  |  Foreclosure vs. Short Sales  |  Who Owns Your Loan  |  Making Home Affordable  |  Truth About Mortgages  |  Truth About Credit Cards  |  Home Evaluation  |  Listing Notification  |  On Line Reports  |  Escrow Terminology  |  Top News Stories  |  Consumer Protection  |  Consumer Links  |  Discrimination  |  Testimonials  |  Loomis/Placer RE Blog  |  Disclosures & Legal Consequences
 

Privacy Policy  |  Site Map  |  Links  |  For Agents  |  Profile  |  Sign In

©2004-2012 Hurst Home Realty