Hi everyone, this is Brad with the BSD Real Estate Group. I have another short video for you. This time it’s about Capital Gains on your principal residence. If I were to ask you what is the current tax law? How many would you know? Is it reinvest in our proceeds within two years or can you take your proceeds and take off to Vegas,
If I were to ask you what is the current tax law? How many would you know? Is it reinvest your proceeds within two years of the sale orr can you take your proceeds and take off to Vegas, tax-free?
Well if you chose the second option, you’re absolutely right but try not to run off to Vegas and spend all your money. You can take your proceeds from the sale of your
The IRS Law state that you can take your proceeds from the sale of your principal residence, $250,000 for a single person up to $500,000 for a couple.
Now, there are situations where your gain will exceed those limits but there are ways to reduce the taxable gain. Give me a call 949.433.6573 and I’d be happy to go over those with you.
Here is an example; last year I sold a house for a client. Her husband had passed away and she thought that she was only eligible for the $250,000 single deduction. Once I sat down with her and explained the current tax laws, she realized that she was able to take advantage of the entire $500,000 deduction.
The next video will be on 10 31 exchange laws that a lot of investors are using to upgrade their investment vehicles without incurring any taxes. If you have any questions please give me a call at 949.433.6573. If you like the video please share, comment or let me know how I can improve. Are there any other topics you’d like me to cover.