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Tax Considerations >Your Tax Free Profits

Significant tax reform legislation was signed into law with the Taxpayer Relief Act of 1997. This legislation replaced both the one-time $125,000 tax-free exclusion for homeowners aged 55 and older, and the "rollover" deferment of capital gains tax requiring the purchase of a replacement home of higher or equal cost within two years of the sale of your principal residence.

With this change, a married couple filing their taxes jointly pays capital gains taxes only on that portion of home sales profits that exceeds $500,000. Single taxpayers, heads of households, and married persons filing separately may exclude up to $250,000. The exclusion is available for all sales of homes that occurred on or after May 6, 1997. Homeowners can use this tax-free provision every two years.

You are allowed to keep these tax-free profits only if you have owned and used the home as your principal residence for two out of the five years prior to the sale of the property. Although the regulations do not require continuous occupancy, the IRS specifies that your principal residence must be the home you use for the majority of time during the year. Consult your tax advisor about your personal circumstance.

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Q	What little-known folk remedy is said to help keep bats away from your home?
A	According to some rural homeowners, if you tar and feather a two-by-four board and place it in your yard, it will ward off bats!
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Get the Latest Listings Before Anyone Else! As soon as I list another home for sale, I'll email you. You'll know first.

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Not just your average vacation home rental! Endless Summer Nites features a fun, "fifties" theme that allows you to relax & reminisce.
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Laura Rodriguez and Debbie Cobian, REALTOR®, real estate agents and broker for Lake Geneva, Walworth County and Southeast Wisconsin Wisconsin home listings, property and land for sale - NUMBER1EXPERT(tm)

Debbie Cobian and Laura Rodriguez
Keefe Real Estate, Inc
751 Geneva Parkway
Lake Geneva
WI, 53147
Office: 262-248-4492
262-248-9539
Laura's Cell: 262-325-7311
Debbie's Cell: 262-949-9818
Email: LauraandDebbie@NUMBER1EXPERT.com
Email: YourLakeGenevaTeam@yahoo.com
Laura Rodriguez and Debbie Cobian are Top Producing Brokers in the Lake Geneva area. Buyers and Sellers rate their service the best! With the team concept, you get two licensed professionals to help with all your real estate needs. Add Keefe Real Estate Inc, #1 in Sales in Walworth County and a family company since 1943, for a perfect partnership. For the experience and progressive service you deserve, contact Laura or Debbie today!

www.YourLakeGenevaTeam.com is brought to you by Laura Rodriguez and Debbie Cobian
NUMBER1EXPERTS™ in real estate for Lake Geneva, Walworth County and Southeast Wisconsin, Wisconsin, Waterfront And Lake Homes

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