Did you know

Did you know that if you haven't owned a house within the past 3 years you may qualify for a $8,000 credit when you purchase a home before Nov 30th, 2009??

Did you know you now have up to two years following the death of a spouse to sell your jointly owned home and keep up to $500,000 in profits tax-free, based on a provision of the Mortgage Forgiveness Debt Relief Act signed into law December 2007.  This allows recently widowed homeowners more time to plan for their future.

Previously, a home had to be sold the same year as a spouse's death to qualify for the $500,000 exclusion.

And did you know - Most homeowners can sell their primary residence and exclude up to $250,000 if and $500,000 if married and filing jointly.  You have to have owned and used the home as your primary residence at least 2 of the past 5 years.  But, most people don't realize the two years do not have to be consecutive.   Plus you do not have to occupy the home at the time of the sale.  

In the past, property owners could sell their primary residence and then move into their vacation home and do it again - ie, declare vacation home as their primary residence, live there 2 years and sell and pay no capital gains...  Under the new law, they can exclude only 2/5ths of the gain if they sell after only 2 years. 

Be sure to check with your accountant for more information.