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 >

Karen Wolfe-Mattison
Sotheby's International
231 Washington Ave.
Santa Fe, NM. 87501
Karen, cell: 505-577-2245
Fax: 505-212-0149
Email: santafetoprealtors@BestImageAgent.com

I pride myself on my "can do" positive attitude, enthusiasm, creativity and sense of humor to keep things in perspective. Karen, in her 19th year as a real estate specialist offers her expertise and formidable negotiation skills in assisting buyers in search of their Santa Fe dream home. Karen has been a sales leader on the historic Eastside. As one of America's NUMBER1EXPERTS™ in the Santa Fe City area, Karen is well equipped to guide you through all your real estate needs. Call or email her today!

This Web site is not the official Web site of Sotheby's International Realty, Inc. Sotheby's International Realty, Inc. does not make any representation or warranty regarding any information, including without limitation its accuracy or completeness, contained on this Web site. Equal Housing Opportunity.

www.realestatesantafeonline.com is brought to you by Karen Wolfe-Mattison
Real estate agent(s) for Santa Fe, Tesuque and Las Campanas, New Mexico

Read Karen Wolfe-Mattison's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge