Legislation included in the 1997 federal budget made significant changes that improve a homeowner's ability to profit from the sale of real estate. The capital gains tax exclusions on the sale of a principal residence is just one of several benefits for homeowners. When you sell a home you have owned and use for two of the five years prior to the sale, married couples are allowed to keep up to $500,000 in tax-free profits and taxpayers filing as singles can keep up to $250,000 before paying capital gains tax.

Long-term capital gain is also taxed at lower rates as a result of the Jobs and Growth Tax Relief Reconciliation Act passed in 2003. The maximum capital gains tax rates dropped from 20% to 15% and from 10% to 5%, effective for sales and exchanges taking place on or after May 6, 2003 and through December 31, 2007. In 2008 the 15% rate continues for higher income taxpayers, while the 5% rate for lower income taxpayers drops to 0%, but only for the 2008 tax year. On January 1, 2009, the 10% and 20% rates will be reinstated.

Consult your tax advisor for advice regarding your particular circumstance.

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Eric Lowry
Keller Williams Realty
9075 Centre Pointe Drive Suite #450
West Chester, Ohio 45069
Phone #: 513-874-1830
Fax #: 513-842-8684
Email: Eric@LowryTeam.com

"Providing Personal, Professional Real Estate Service" Eric is a full-time real estate professional specializing in the sale of existing and new construction homes in the Cincinnati, West Chester, Beckett Ridge and Liberty Township, Ohio areas. Eric is also very experienced in working with relocating clients and their relocation companies. In today's real estate market "Experience Counts"!