Moving Resources
We'll connect you with a great REALTOR® so you can purchase or sell your home and gain all the information you
need to make your move and become a part of a new community! We are
committed to exceptional service with utmost integrity.
Tax
Deductible Relocation Expenses
Taxpayer Relief Act of 1997
Tax Deductible Relocation Expenses
You may be able to deduct ten cents per mile of expenses associated with
your move. Check with your tax professional for more details!
Taxpayer Relief Act of 1997
Good news! The 1997 Taxpayer Relief Act
impacts home owners and prospective home owners very positively. We used
to have to worry about capital gains taxes when we sold our principle
residences. We wanted to “save “ the once-in-a-lifetime $125,000
exclusion on capital gains for when we reached 55 years of age. Often we
have been “forced” to purchase a home of greater than or equal value
to the home we recently sold to avoid paying capital gains taxes on the
sale of our home.
The rules have now changed. Married
homeowners filing a joint return can now exclude up to $500,000 of gain on
the sale of their principle residence. Single homeowners can exclude
$250,000 of gain. This exclusion can be taken as often as once every 2
years. We may take the exclusion as many times as we like as long as we
have used our home as our primary residence for at least 2 out of the
preceding 5 years.
This new law will enable empty nesters,
retirees or transferees who may want to downsize or even rent a house or
apartment to do so without worrying about capital gains taxes. They can
simply exclude their gain and take the cash from the sale of their home
and do whatever they want with it (*). This new law also enables divorcees
to sell and purchase a smaller or less expensive home without fear of a
big capital gains bite. Singles can stop worrying about whether a
prospective spouse has a house to sell or whether they have already taken
their once-in-a-lifetime exclusion (*).
The bottom line is that we now have much
more freedom to buy and sell our homes without concern for capital gains
taxes. (*) Use a prescreened, full time REALTOR® with utmost integrity
recommended by the EXODUS Network to purchase or sell your next home. We
are eager to serve!
* This is true only if your present home is
worth less than $500,000 as a married couple and less than $250,000 as a
single taxpayer.
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