Decline in Real Estate

[John S. Rabi]

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KathH, I think that the fairly recent tax law allowing someone to live in a house 2 out of the last 5 years and have tax-free gains (up to a limit) replaced the tax law that you had to re-invest within a year to avoid capital gains. Some of the real estate people that contribute to this forum can add or correct me, but I think there's no re-invest requirement.

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Correct. If you sell your primary residence and if you have lived there at least two years out of the past five you can have $250K (single) or $500K (married) capital gains tax free.

Aloha,
John S. Rabi, ABR,CM,CRB,FHS,PB
http://www.JohnRabi.com
Typically Tropical Properties


Edited by - John S. Rabi on 06/12/2007 09:44:52