Meet Mark and Tamara Bonning Mark and Tamara Bonning have been with RE/MAX for twenty years as a husband and wife team. Together we have sold over 100 million dollars in real estate and have earned the highest award at RE/MAX, the coveted "Lifetime Achievement Award". We have extensive knowledge of a real estate transaction, as we have guided over a thousand homebuyers successfully through closing. Clients and friends find us honest and hardworking. So come walk with us through our "Doors to Success" for the best real estate information available in Houston. Please Sign Up For The Latest Listings and the Latest Real Estate News
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.
|
| Q |
What famous American building was originally built in 1792, burned and rebuilt 1814-1818 and restored in 1952?
|
| A |
The White House in Washington, D.C., modeled after an Irish palace, is a sumptuous example of post-colonial architecture. |
 See More Real Estate Trivia > |
|
|
|
- NUMBER1EXPERTS™ 
