How to link two real estate tax shelters

2 05 2005

The federal American Jobs Creation Act enables property owners to avoid paying capital gains taxes on their investment properties. They can use a like-kind exchange, also called a 1031 exchange, to avoid paying taxes when they sell the property, provided that they purchase another rental home within 45 days of the closing date.

To qualify for the capital-gains exemption on principal residences, meanwhile, owners must reside in the dwelling for at least two years during a five-year period. To apply this benefit to an investment property, they can either live in the home for five years themselves, or rent it for three years and live there for the remaining two.

After the five-year period is up, they can sell the residence and exclude $250,000 from their taxes if single or $500,000 if married and filing jointly.

Source: Investor’s Business Daily





Building Permits Jumped in April 2005

2 05 2005

The city issued 756 building permits for new single-family homes last month, up 31 percent from April 2004 (city’s best month in three years.) The city issued an average of 520 permits a month for new single-family homes over the last year. The number for all building permits issued in April — for the new construction and renovation of homes and businesses — is up 11 percent from the same month last year.





How to link two real estate tax shelters

2 05 2005

The federal American Jobs Creation Act enables property owners to avoid paying capital gains taxes on their investment properties. They can use a like-kind exchange, also called a 1031 exchange, to avoid paying taxes when they sell the property, provided that they purchase another rental home within 45 days of the closing date.

To qualify for the capital-gains exemption on principal residences, meanwhile, owners must reside in the dwelling for at least two years during a five-year period. To apply this benefit to an investment property, they can either live in the home for five years themselves, or rent it for three years and live there for the remaining two.

After the five-year period is up, they can sell the residence and exclude $250,000 from their taxes if single or $500,000 if married and filing jointly.

Source: Investor’s Business Daily








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